ProjectClue.com We're Ready, Call Us

(+234) 07030248044

Project Topic:

COMPENSATION POLICY AS MEANS OF ATTRACTING AND RETAINING EMPLOYEE

Project Information:

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 79 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   2,990 people found this useful

Project Department:

HUMAN RESOURCE MANAGEMENT UNDERGRADUATE PROJECT TOPICS, RESEARCH WORKS AND MATERIALS

Project Body:

ABSTRACT

The research focus on compensation policy as means of attracting and retaining employee, it present a conceptual and theoretical study of the nature of compensation and compensation plan and policy aim at attracting and retaining employee.

INTRODUCTION

Compensation can be defined as all of the rewards earned by employee in return for their labour. This includes;

a)        Direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals.

b)        Indirect financial compensation including all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between employer and employee such as benefits, leave, retirements plan, education and employee services.

c)         Non-financial compensation; referring to as issues such as career development opportunities, opportunities for recognition as well as work environment and conditions in determining effective rewards, however, the uniqueness of each employee must also be considered. People have different needs or reasons for working. The most appropriate compensation will meet these individual needs. To a large degree, adequate or fair compensation is in the mind of the employee.

            A good compensation strategy includes a balance between interval equity and external competitiveness. Compensation and benefits affects the productivity and happiness of employees as well as ability of your organization to effectively realize its objectives. It is to your advantage to ensure that your employees are creatively compensated and knowledgeable to their benefits.

EQUITY:        Equity or fairness has been mentioned as a key component in creating a successful compensation policy. It can be defined in the following three ways;

1.        Workplace equity refers to the perception that all employees in an organization are being treated fairly.

2.        External pay equity exists when employees in an organization perceive that they are being rewarded fairly in relation to those who perform similar job in other organization

3.        Internal pay equity exists when employees perceive that they are being rewarded fairly according to the relative value of their jobs within an organization.

            Perceived inequity or unfairness either external or internal, can result in low morale and loss of organizational effectiveness. For example, if employees feel they are being compensated unfairly, they may restrict their efforts in leave the organization, damaging the organization overall performance.

            The research therefore intends to investigate compensation policy as means of attracting and retaining employees.

 

CHAPTER ONE

1.1      BACKGROUND OF THE STUDY

The significance of maintaining a stable workforce in an organization cannot be over-emphasized. It enhances the organization reputation and brand and provides overall productivity, growth and profitability of the organization. High turnover of employees damages organizations operations professional human resources practice to enhance attraction and retention in the organization.

One of such practice lies with compensation policy. Good compensation policy not only attracts new employees, it also enhances employee retention. Therefore, developing a good compensation policy is pivotal to the well being of the employee and the organization at large.  

 There are member of components that need to be addressed when developing your compensation policy to ensure they align with your organizational strategy and objectives. One key to remember is that your compensation strategy must help to create the work culture you want. How your structure your systems and manage the internal and external equity issues will directly inform the culture of your organization. Developing a compensation policy is done by identifying, your goals and objectives, considering and retaining employee. Your emphasis on internal and external equity and whether performance is tied to increases, understanding what balance you want to achieve between direct salary and indirect benefit is critical to developing your overall total compensation approach.

Therefore, this research seeks to investigate compensation policy as means of attracting and retaining employees.

1.2      STATEMENT OF THE PROBLEM

 The problem confronting this research is to investigate compensation policy as means to attracting and retaining employees. Maintaining good compensation practice is fundamental to the well being of the employees and the organization as perceived in equality or unfairness, either external or internal can result in low morale and loss of organizational effectiveness.

1.3      RESEARCH QUESTION

1.        What are compensation and the nature of compensation plan?

2.        What constitute the nature of compensation policy of the organization?

3.        What constitute the compensation policy required to attract and retain employees?

1.4      OBJECTIVES OF THE STUDY

1.        The objective of the study is to provide a conceptual and analytical study in compensation policy.

2.        To determine compensation policy required to attract and retain employees

3.        To determine types of compensation plan and their effectiveness towards attracting and retaining employees

1.5      SIGNIFICANCE OF THE STUDY

1.        The study shall provide a framework of effective compensation policy for attracting and retaining employees

2.        it shall be of immense significance to managers, human resource personnel and entrepreneurs of business

3.        it shall serve a reference source of information to various professional and students in personnel administration

1.6      STATEMENT OF HYPOTHESIS

H0        There is no relationship between compensation policy and employee and organizational effectiveness and efficiency

H1        There is a relationship between compensation policy and employee and organizational effectiveness and efficiency

H0        The level of employees’ attraction and retention is low

H1        The level of employees’ attraction and retention is high

H0        The impact of compensation policy in employee attraction and retention is low

 H1        The impact of compensation policy in employee attraction and retention is high.

1.7      SCOPE OF THE STUDY

            The study shall focus on compensation policy as means of attracting and retaining employees. It shall provide both a conceptual and analytical study of compensation and compensation plan and elucidate the structure of compensation policy towards attracting and retaining employees.

1.8      DEFINITION OF TERMS

  DEFINITION OF COMPENSATION

Compensation can be defined as all of the rewards earned by employee in return for their labour. This includes;

a)        Direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provided at regular and consistent intervals.

b)        Indirect financial compensation including all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between employer and employee such as benefits, leave, retirements plan, education and employee services.

c)         Non-financial compensation; referring to as issues such as career development opportunities, opportunities for recognition as well as work environment and conditions.

Get the complete project »

Instant Share On Social Media:

OTHER SIMILAR HUMAN RESOURCE MANAGEMENT PROJECTS AND MATERIALS

THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 80 ::   Attributes: Questionnaire, Data Analysis,Abstract  ::   36615 engagements

ABSTRACT This research is designed to cover Human Resources Planning in relation to Performance in Private Sector. As a Human Resource Manager, Human Resources Planning are relevant function of manag...Continue reading »

CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ breweries Uyo Akwa Ibom State)

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   25211 engagements

CHAPTER ONE 1.1 Introduction The modern world is information oriented, thus management becomes more concerned about communication with employees. Hence communication is vital tool for effective mana...Continue reading »

EFFECT OF FINANCIAL AND NON FINANCIAL INCENTIVES ON STAFF PRODUCTIVITY

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 67 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   10355 engagements

1.0 Background of the study All organizations are concerned with what should be done to achieve high level of productivity through staff motivation using the right kind of incentive. Consequently the...Continue reading »

EFFECT OF TIME MANAGEMENT AS A TOOL FOR ORGANIZATIONAL SURVIVAL

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 68 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   7972 engagements

Management study has revolved over long period of time and successive means of thought in industry and commerce have severely described it as the basic ingredient of administering a business. In supp...Continue reading »

EMPLOYEE RELATIONS AND IT EFFECTS ON EMPLOYEE PRODUCTIVITY

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 74 ::   Attributes: Questionnaire, Data Analysis

CHAPTER I INTRODUCTION Maintaining healthy employee relations in an organization is a pre-requisite for organizational success. Strong employee relations are required for high productivity and human ...Continue reading »

IMPACT OF COLLECTIVE BARGAINING ON INDUSTRIAL DISPUTE IN AN ORGANIZATION

 Format: MS WORD ::   Chapters: 1-5 ::   Pages: 69 ::   Attributes: Questionnaire, Data Analysis, Abstract  ::   7100 engagements

WHAT IS COLLECTIVE BARGAINING Joshoyin (2007) define collective bargaining as a machinery for discussion and negotiation whether formal or informal, between employer(s) and workers, representatives, a...Continue reading »

What are looking for today?

WHAT OUR CUSTOMERS ARE SAYING:
  • 1. Jamilu Idris Muhd from Sule Lamido University Kafin Hausa said "very wonderful effort".
    Rating: Excellent
  • 2. Abubakar Khalifah @Pkhal_Official from Bayero university kano (BUK) said "Indeed very knowledgeable and helpful. EXCELLENT!!!".
    Rating: Excellent
  • 3. Rabi At Babandi Ibrahim from Federal University gwagwalada said "Thanks very much for your wonderful and amazing solution may the almighty god help you ameen ".
    Rating: Very Good
  • 4. Rabi At Babandi Ibrahim from Federal University gwagwalada said "Thanks very much for your wonderful and amazing solution may the almighty god help you ameen ".
    Rating: Very Good
  • 5. Harry Harris Haniel from Ahmadu Bello University said "Good content ".
    Rating: Very Good
  • 6. Abdulrah-man Abdullahi from University of Benin said "A big thanks to the team for the effort exerted towards the completion of this academic piece. Projectclue shall always be referred to those seeking academic assistance.".
    Rating: Excellent

Leave a comment: