Question

Describe the concept of total compensation. Identify as many possible elements of total compensation as you can. Why is this concept important?

Answer 1

Total compensation ia all the element a company provide his employee as a salary. Total compensation on the annual basic is offered to the employee when he joined an organization. It suppose to be revised in end of every financial year.

Various element of total compensation are-

1. Basic salary.

2. travel allowance

3. House rent allowance

4. Bouquet of benefit

5. Variable component

6. Performance bonus

7. Incentive

This concept is important as organization fix or design the slarys according to the work profile of the employee. The increase the bonus part if the job profile is to meet the target.

Apart from this organization provide health benefits to employees.