Compensation or rewards in an organization serve several important functions:
1. Attract and retain talent: Offering competitive compensation and rewards helps an organization attract top talent and retain employees who are valuable to the company's success.
2. Motivate employees: Compensation and rewards can serve as a powerful motivator for employees to perform at their best. By rewarding performance and achievements, employees are incentivized to work hard and achieve their goals.
3. Increase job satisfaction: Fair compensation and rewards can help increase job satisfaction among employees, leading to higher morale and engagement in the workplace.
4. Encourage employee loyalty: By recognizing and rewarding employees for their contributions, organizations can foster a sense of loyalty and commitment among their workforce.
5. Promote fairness and equity: Compensation and rewards systems can help ensure that employees are compensated fairly for their work, regardless of factors such as gender, race, or age.
6. Drive performance and productivity: By tying compensation and rewards to performance, organizations can incentivize employees to work towards achieving the company's goals and objectives, leading to increased productivity and performance.
Overall, compensation and rewards play a crucial role in shaping employee behavior, motivation, and satisfaction, ultimately contributing to the success of the organization.
Function of compensation or reward in organisation
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