Compensation and Benefit

Running head: COMPENSATION AND BENEFIT
Compensation and Benefit
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1Compensation and Benefit
Key Purpose of a Compensation System:
Compensation is an essential part of the complex organisations that are competing in
the dynamic and democratic societies. The elementary purpose of the Compensation system
is to involve qualified employees in the organisation structure and exert from them the
organisational needs (Noe et al., 2017). This means that the employees must be understood
that employment refers to satisfaction of one’s own needs that are economic, security and
social along with the successful attainment of the organisational goals.
Key job attitudes and their role in employee behaviour.
The job attitude refers to the opinions, values, beliefs and orientations one has
towards one’s job. Therefore, these attitudes contribute towards the employee behaviour at
their workplace. There are three important job attitudes that shape the employee behaviour at
a workplace.
Firstly, the level of work acceptance among the employees regulate the behaviour of
the employees at the workplace. Work acceptance refers to accepting variety of work that
will positively contribute growth and production. It is seen that the employees with lower
level of acceptance of work, has a negative behaviour at work. They are always negative and
has poor level of work output. On the other hand workers with higher level of work
acceptance illicit good work production.
The second component is teamwork. In the modern age of workspace, team work is
an important aspect of work and it is present across all organisation. Working in team illicit
the level of accepting other people and their opinions and views. It also contributes positively
to the growth of the employees and allow each of the team members to excel in their field as
well as learning other elements of work. Therefore, employees who work in teams have

2Compensation and Benefit
improved their work and employees who cannot work in teams perceive a restriction in teams
of growth among the workplace.
Another important component is transparency of organisational goals. The
organisation must maintain transparency in organisational objectives. Therefore, employees
can perceive whether or not the organisational goals align with their personal goals. It is very
important. If the organisational goals do not fall into the same alignment then the workers
feel compulsion towards work that affect their productivity (Osibanjo et al., 2014).
Legislated constraints towards compensation strategy and mandatory employee
benefits.
There are certain constraints towards the compensation strategy. First and foremost,
the Tax Legislation. The pay system, which is an important aspect of the compensation
strategy, is influenced by the Tax Legislation. There are certain taxes that encourage
employee pays and discourage the employee pays. Therefore, those, which encourage the pay
structure contribute positively towards employee behaviour as they get benefitted, and those
contribute negatively, negatively impact upon the employee behaviour and motivation.
Second one is the Employment Standards Legislation that structure and refers to the
minimum payable wage to the employees. Every organisation has to abide by this structure.
Also the workers must be paid for the extra hours of work (Popov & Rocholl, 2015).
Therefore, this also influence the compensation strategy. Third is the Trade Union Legislation
is to additionally to allow the employees resistance from certain criminal and common risk
and empower them to embrace and release their typical and authentic capacities to protect
association reserves, and to encourage the working of associations. Lastly, the labour market
constraints, that refers to the constraints on the compensation strategy related to the relative
levels of demand and supply for specific occupational groups (Popov & Rocholl, 2015).