Human Resource Management Assignment | Questions and Answers

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author note

1
HUMAN RESOURCE MANAGEMENT
Answer to Question 1
Relationship Between Compensation and Employee Retention
With the help of compensation, it will be beneficial in maintaining the balance
wherein the salary as well as wages helps in improving the performance of the employees to a
large extent. It has been noticed that better the package of compensation, it will be capable of
retaining the employees in companies (Al Mamun& Hasan, 2017). Proper compensation will
be helpful for keeping the employees loyal towards employers and the owners of business
does not need to spend more money in recruiting new candidates. The inclusion of different
kinds of incentives such as spot rewards are the other ways which helps in retention of
employees successfully.
Analysis of Impact of Salary on Retention of Employees
In order to enhance the performance of the work of employees, the salary plays a vital
role as it is the primary motivation for coming to work. The person who is earning high salary
feels highly motivated to perform the good job as they want to please the employer in
retaining their position (Sarmadet al., 2016). The salary helps in bringing feeling of security
which will be allowing them to feel accomplished and their morale is increased to achieve the
high level of outcome.
Reasons Employees Leave Organizations due to Compensation Factors
In the different companies, the salary and better compensation are the two crucial
elements which are not received by the employees and due to the same reason, it impacts the
effectiveness of the productivity of the company as a whole (Sarmad et al., 2016). There are
companies which does not provide the salary hike or no rewards, due to which it impacts the
effectiveness of performance of employees and due to the same reason, the turnover rate
increases to a lathe extent as well.