Compensation and Benefits

Running head: COMPENSATION AND BENFITS 1
Compensation and benefits
Name
Institution

COMPENSATION AND BENFITS 2
Compensation and benefits
It is the obligation of every organization to pay its workers and also give them benefits.
These benefits may include vacation, life insurance, retirement plans among others. They are
forms of payment other than the normal compensation which is provided to workers as a way of
returning a favor to them because of their contribution. Benefits and compensation are essential
things in human resource management because it assists in motivating the workforce
(Edirisooriya, 2014). Employees also tend to receive various benefits due to their actions and
performance which helps in identification of the best people in the workforce. The paper will
focus on the aggregate rewards package which encompasses non-monetary or monetary rewards,
benefits, and compensation. In this paper, we will also discuss why it is essential to align the
organizational strategy with the compensation package. The paper will, therefore, address the
issues on benefits and compensation in organizations and how they align with organizational
strategies.
Legislature
Employees in Canada are protected by law to avoid exploitation which involves the
setting of employment standards. In Alberta, employees have their rights in institutions they
work in and this is taken care of by the law. It empowers employees to demand and be aware of
their rights besides allowing them to exercise their workers’ rights. The Alberta act protects its
employees through the development of different employment standards which involves
regulations, compliance and rules measures for employees and employers in Canada.
The Alberta employment customary rules cover the areas on working hours, earnings,
overtime, holidays, minimum wage termination, job-protected leaves and laws on youth workers.

COMPENSATION AND BENFITS 3
These standards ensure that workers receive their benefits and compensation from organizations
they work in without fail. These laws are enforced by the use of prosecutions, judgment, and
inspections, audits and penalties collection (Barnetson, 2015). There also exists a compensation
act which protects workers and employers against the effects of illnesses and injuries associated
with the occupation. There is also a section in the Alberta act which states that employers should
give workers benefits continuously especially those who get injuries at work making it difficult
for them to work. Through these laws, workers can feel protected because they will not be
exploited by employers when it comes to compensation.
Organizational strategy
A company’s overall strategy involves all the actions it plans to take to help it in
achieving long-term objectives. Companies tend to forget that alignment of organization strategy
and rewards given to workers is very important. According to research, the reward is linked to
the achievement of business goals because it helps them in identifying job expectations.
Effective, well-balanced executive compensation program helps employees to feel motivated and
this allows it to achieve its performance objectives with ease. A proper reward of employees also
contributes to the achievement of organizational goals because job performance is improved
(Piaralal, Mat, Piaralal, & Bhatti, 2014). To many organizations, benefits and compensation
given to employees act as a tool of reinforcing and communicating organization value and
priorities to workers.
Making credible links between collective and individual priorities or efforts in the entity
is an essential aspect when the entity is set to attain certain goals. It is difficult to align rewards
with the overall strategy but it can be done through the making of decisions with different