Compensation Management: Effectiveness of Benefits and Incentives Schemes

Compensation
Management

Contents
INTRODUCTION.......................................................................................................................................3
QUESTION 1..............................................................................................................................................3
Evaluation of effectiveness of benefits and incentives schemes..............................................................3
QUESTION 2..............................................................................................................................................5
Five key success factors in performance related pay implementation to motivate, attract and retain
talents......................................................................................................................................................5
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
The compensation management is one of the key areas that requires attention as it affects
the workforce directly. It relates to or is concerned with compensating the employees for the
work, contribution of effort put by them in order to achieve the organizational goals. For
accomplishing the objectives of company, the employees put their efforts in right direction.
Hence they must be properly nurtured and paid for their work, service or performance and apart
from wages or salary; proper incentives, services and benefits must be provided in order to
motivate them (Tumi, Hasan and Khalid, 2021). This report is based on the company Petronas
(Petroliam Nasional Berhad) which deals in oil and gas industry. It was founded in the year 1974
and is headquartered in Kuala Lumpur, Malaysia. This report shall deal with effectiveness of
incentives and benefits schemes practiced by company and 5 key factors in performance related
pay implementation in order to attract talents.
QUESTION 1
Evaluation of effectiveness of benefits and incentives schemes.
The companies generally hire the talented and most qualified workforce and keep those
employees who are productive and loyal. In order to attract and retain the best and talented
workers, the companies usually offers the packages which includes the compensation in
monetary terms, incentives in the form of reward or perks and benefits which includes valuable
options like paid vacation, etc. It is very important for companies to provide the workforce with
various benefits and incentives as per their performance and work so that they are attracted,
motivated and retained in organization (Hutson and Dunning, 2020). Patronas makes sure that its
employees are given incentives and are subject to various benefits so that their morale is boosted
and they are motivated to work towards the achievement of goals. They offer wide range of
opportunities and benefits to the employees right from recruiting them to retaining the talent in
the company. The incentives and benefits related schemes are very effective and places impact
on the employees so that they are retained and motivated in organization. The employees in the
Malaysia may accept or consider new offer only if it offers them the attractive benefits and
salary. The effectiveness of benefit and incentive schemes in Patronas are illustrated thereunder-