20 Introduction
Learning Objectives
- Assess the importance of compensation planning to sound human resources practices
- Describe the different types of compensation
- Distinguish between different types of benefit plans and describe legally required benefits
- Understand the obligations under the provincial Employment Standards Act
It’s no surprise that people work because they get paid to do so. But, increasingly, people also work to ensure they have benefits such as health care, long-term disability protection, and retirement plans. While job satisfaction is important, few people would work without receiving a salary and benefits.
Compensation is typically the largest expense of any organization, so it is important that you determine a compensation strategy that is in keeping with your overall operational strategy. A company can set wage levels at the top end, mid-level, or lower end of the market. Regardless of where you chose to position yourself, the goal is to ensure that your compensation plan is competitive enough to attract and retain qualified employees and meet the needs of your workforce.