In the current business world, every organization is trying to be better than its rival competitors.
One of the core components that holds the keys of success of an organization are the employees of the given organization.
Therefore, to be able to ensure that the employees of the organization are productive, it is important to always ensure that they are well compensated.
As it will be seen later, different organizations have different compensation payment structures that are in line with the goals and the ambitions of the company.
Benefits of a Good Compensation Plan
One of the benefits of a good compensation plan is that it increases the productivity of employees as it raises their morale which is essential in the growth of the company.
A good compensation plan will also keep the workers happy and content and therefore reduce the rate of job turnover at the workplace.
A good compensation plan will also help reduce work conflict and stress as workers will appreciate their jobs and value their jobs and this will translate into their personal relationships.
When a worker is poorly compensated what happens is that, they will become angry and this is what makes them be rough and rowdy at the workplace even to the clients of the business.
Chase Bank is a global banking company that has branches and is in operation in a number of countries in the world.
Their compensation plan is the indirect compensation plan.
This means that to be able to compensate the employees for the work that they have done, the organization has adopted a way in which its employees are rewarded for their work albeit in an indirect manner.
One of the compensation benefits that the bank offers its employees is that they offer their employees loans at zero interest rates. This makes t possible for their employees to have access to cheaper loans.
Hardworking employees are also promoted over the course of their work which is encouraging for the company.
McDonalds is one of the most renowned brands in the world especially in the fast food industry.
The company uses the direct compensation plan to reward its employees that have proven to be hardworking to the necessary authorities.
One of their direct ways of compensation is that they allow their employees to keep tips that they have been given by the clients that they serve.
The employees are also given bonuses in case they are able to surpass the targets that the company has set for each of them.
The employees are also allowed to eat at the workplace which also helps improve their efficiency and productivity.
Similarities and Differences
One of the similarities between the two payment plans is that they both aim at improving the morale of the workers.
The other similarity is that these payment plans involve the use of money to be able to raise the morale of the workers.
The other similarity is that these payment plans are only given to hardworking employees to be able to motivate them to be able to work even more harder.
The differences include the fact that while one payment plan is directly paid to the employee in terms of cash one is indirectly paid to the employees in terms of benefits and privileges.