Importance of a hr manager for compensation and benefits

Importance of a HR Manager for Compensation and Benefits The sub-discipline of human resources called Compensation and benefits, abbreviated as C&B, focuses on making policies on the basis of benefits and compensations of employees. The term “compensation and benefits”, refers to the discipline as well as the rewards provided to the employees such as recognition, development and work-life.

A HR Compensation & Benefits Manager has the duty of providing the following basiccompensations and benefits to the employees and keeps a check on it by doing regular audits. The following are the categories in which these are divided into: • Guaranteed Pay: It is the fixed pay that is paid by the employer to the employee. The most common form of guaranteed pay is base salary. It may also include allowances in the form of, for example, transport allowance, housing allowance, etc. Premiums such as overtime, night shift, etc., are also a form of guaranteed pay just like differentials are.

• Variable Pay: These are the non-fixed monetary rewards paid by the employer to the employee that can be as a result of discretion, performance or results. Bonuses and incentives are common forms of this.

• Benefits: The HR looks after the FMLA Compliance review and the HIPAA Privacy & Security for employer which covers the medical leaves and security benefit of the employee while considering the accountability of the employer as well. FMLA stands for Family and Medical Leave Act. HIPAA stands for Health Insurance Portability and Accountability Act. • Equity-based compensation: This consists of the stocks the employer provides to the employee to provide a certain level of ownership of the company to them and tie their compensation to the long-term success of the company.

HR Manager for Compensation and Benefits is necessary to keep a check on the provided benefits and compensations to the employees in a company as well as optimize them to keep them favorable for the employer as well..