Compensation at The Fit Shop

Running head: COMPENSATION AT THE FIT SHOP
Compensation at The Fit shop
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COMPENSATION AT THE FIT SHOP
1
Table of Contents
Introduction................................................................................................................................2
Role of compensation in Fit Shop Limited................................................................................2
Approaches to compensation system.........................................................................................4
Conclusion..................................................................................................................................6
References..................................................................................................................................7

COMPENSATION AT THE FIT SHOP
2
Introduction
Compensation and the benefits refers to sub-discipline of the human resources that
lays emphasis on the aspect of compensation along with the benefits policy making in a
company. Compensation refers to total cash along with the non-cash payments which is paid
to the employees in exchange of the work that they do in an organisation (Feng-e, Ning &
Xiao-fei, 2017). Base pay is indicative of portion of the compensation of an individual which
is on the basis of the time that has been worked and not on the basis of the output that has
been produced. Indirect pay is indicative of elements of the remuneration which is inclusive
of the benefits that are paid to a person along with the basic wage. Performance pay
distributes the financial rewards to the employees on the basis of the contribution of the
individual in a company. Fit shop Limited refers to the brand-new firm that sells all kinds of
the training, fitness along with exercise equipment to general public. The company provides
the customers with the personalised advice that helps in meeting the specific needs of the
customer. This report discusses about role which is played by base pay, indirect pay along
with the performance pay for the different professional positions in The Fit Shop. This report
identifies the specific approaches that can be adopted in the organisation.
Role of compensation in Fit Shop Limited
A crucial role is played by the base pay and the performance pay in a company that
helps in providing the encouragement to the employees. The workers of The Fit Shop are
paid the salary on the basis of:
 Basic
 HRA
 Transport Allowance
 FBP Allowance
The managers have a crucial role to play an organisation and the base pay system
helps the managers in handling various kinds of responsibilities in a company (Malik, 2018).
The payment of the base pay would make the manager in the application of the advanced
education along with the specialized skill set that can be instrumental in improving the
performance of employees of company.