Web- Based Compensation and Planning

Compensation could be defined as a payment for the services of employee to employer. As what I had learnt, compensation is fixed in terms of bonuses, wages, cost of living adjustment and equity adjustment. For example, every employees need to get their payment after they had doing their task. Some payment will be paid exactly after finishing the task or some of them 1 month after. It will be fixed by the company. There are many ways to give a payment to the employees. The most famous nowadays is by the online system banking. Many companies were doing this system because it helps them in saving times and make their work become easier.

Online compensation system is a system that makes human resource departments’ officers easier in handling their company employees. By using this system, employees can check on their own total amount of money they get each months. This will be more freedom to them to use in any time that they would like. They also can do that in any places that they like. The system consists of a few components that are available for employees to check by themselves, there are fixed compensation such as basic salary, bonuses, cost of living adjustment and equity adjustment, many kind of compensation such as incentives and profits sharing, stock such as restricted stock, stock plan, stock options and others and some will also have application such as pension calculator.

There are many benefits of using this system. Firstly, online compensation system has help a lot in improving a company’s performance by simplifying the process using technology and thus improving the effectiveness of the company in terms of the accuracy of information. In other words, we can reduce the users of paper and inappropriate way of organizing data. Furthermore, by using such system, the employees in a company will respect and feel proud of their company.  Most of the employees in the organization will feel that their company is an advance and high –Tech Company. This give opportunity to employee to learnt something new in the technology. This basically will change the way of employees relate to their HR department and also will change the perception of employees regarding their HR department in their own organizations.

Lastly, by using these systems in an organization, top management, managers and subordinates can have ready access to the compensation information without need to go through a third party. This can reduce the tendency of delivering of wrong information which may have large effect to the organization. This seen to be effective way to avoid our employees being get cheat by the third parties.

As a conclusion, online system compensation provides many benefits to organizations. So, organizations should consider in implementing their administration using systems and technologies which can help them to save time and cost and at the same time, increase their company profits. However, this system also gives more benefits to the employees and make their life easier.

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