BLOG 3 : Web Based Compensation And Planning

         Web based compensation is the online approach used by organization to administer, investigate, collect and store the information. The compensation planning runs through the computers in order for easier to success and gathers the data as possible such as in track payroll data (Robert L, 2002).  Moreover,   it is a web based that provides secure matters regarding the salary, pension and also insurance application. With a web based compensation planning can remove the reduce of human resource managers in conducting the compensation planning, develop and maintain competitive pay rates, drive employee performance,  and to  rearrange  the increment of  compensation.

           As we know, there are two category of compensation which are fixed and variable compensation. The fixed compensation includes wages, bonuses, and equity adjustments, promotion, and locality premiums. Then, the variable compensation includes individual incentives plan, profit sharing plan, productivity gain sharing programs, and recognition awards. The organization with effective compensation and planning will enhance the system work of its personnel costs, manages the performance of employees and reward. 

           The advantages of web based compensation system is streamlining in administering the payment. Through the application of the system, it can enhance in manage the system pay and reward in organizations. The management is willing and able to make changes to adapt to different challenges and opportunities by practices the web-based system (Patricia, 2009). It also will make easier in preparing annual reports because the system will records all data of employee’s compensation. Manager can perform salary planning function much easier rather than traditional paper based compensation and planning. It is can let the managers have ready access to information that is useful both to them and to their employees, and do not have to go through a third party. 

            The other advantage is the employees can easily get the information about compensation planning in the organization through the web based application. The management put all the information regarding the compensation process in the web. This will enables employee to access the program using a standard web browser on anywhere and anytime.  Data such as current salary, salary range can be viewed for their entire employee at once.

      

References:

1. Patricia K. Zingheim, Jay R. Schuster, and Marvin G. Dertien, (2009). Compensation, Reward and Retention Practices in Fast-Growth Companies. WorldatWork Journal, Second Quarter 2009, Volume 18 No. 2, pages 22-39.
2. Robert L. Heneman and Jon M. Werner, (2005). Merit Pay : Linking Pay to Performance in a Changing World. 2nd Edition. Information Age Publishing Inc.