Features of a Good Compensation Plan

A good compensation plan has the following features:

1.    It must be simple to understand.

2.    There should be equal work for equal pay

3.    It should offer minimum wages to workers and incentives for good performance

4.    It should attract and train people in the organization.

5.    It should motivate workers to contribute their best to organizational goal by linking Wages with output

6.    It should satisfy lower and higher-order needs of the employees.

7.    It should maintain balance and harmony amongst managers and workers. Confects should be reduced.

8.    It must be consistent with what competitors are paying to their workers.

9.    It should be consistent with cost of living.

10.    It should have incentive schemes so that workers who excel in their performance earn more than their fellow workers.

11.    It should have scope for promotions and pay hikes.

12.    It must be bases on merit and job evaluation of workers.

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