Employers offer a large variety of benefits. In recent years, we have seen some of those benefit offerings reduced. The benefit trends that we are seeing with employers are focused on decrease in fringe benefits and rise in ESOPs. It is bringing in better impact on motivation and will benefit the firm in the long term. Compensation also depends on the type of job as well as the kind of organization. The firm’s policies as well as the profit structure and division are a part of the components of compensation decision basis. The firm’s strategic objective as well as operations and extent of operations are also important determinants of compensation.. Moreover the economic conditions and competition also impact compensation to a great extent. Compensation many a times has to be adjusted as per the union demands or has to be negotiated upon (Carl L, 1994).
Reference
Carr L, 1994, The role of ethics in Executive compensation: Towards a contractarian interpretation of the neoclassical theory of managerial remuneration
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