WEB-BASED COMPENSATION AND BENEFIT PLANNING

           Compensation is one of the most complex topic in Human Resource Management. Organization faced with the complexity of creating and administrating compensation system are increasingly turning to technology for help. The basic compensation system includes based pay, merit pay, short term and long term incentives, perquisite, recognition awards and attraction or retention awards. There are many process associated with each of these, all of which must be coordinated. ( Kavanagh, Thite & Johnson, 2011). The compensation plan should support the company strategic goals. The management should produce an align reward strategy. The company task is to create a reward package aimed at encouraging employee behavior that the company needs to achieve its competitive strategy. ( Dessler & Tan Chwee Huat 2010)

            Because the complexity of the compensation, many series of decision must be made before final compensation decision is made. So the organization can use the web-based compensation module which the manager can perform salary-planning function much easier than was possible with paper based processes. Data such as current salary, salary range can be viewed for all their employee at once. Most company now, make salary structure available on the company intranet. And job postings and also provide the structure information or the salary grade of a job, so that employees can look up what the range of pay for any job would be. (Kavanagh, Thite & Johnson, 2011)

            While other than that, benefits are indirect financial and non-financial payment employees receive from their company. They are important components of the total compensation package. For example of benefits such as health and life insurance, pension, time off with pay, child care facilities, and recreation activities. There are many benefit and various ways to classify them like pay for time not worked, insurance benefits, retirement benefits, and service and family-friendly benefits.  ( Dessler & Tan Chwee Huat 2010).

            With the web-based access to benefit and other employee information, the staff can view summary report at any time, which, in many cases, eliminates the need for a company to produce expensive paper versions. With a web-based system, an employee can, at his or her convenience, view his or her current benefits, salary, and other information directly. For an international company that distributed benefit pay in multiple currencies, the system could normalize that data into single currency. The accuracy of the compensation and benefit plan can increase the employee motivation. (Kavanagh, Thite & Johnson, 2011)