compensation and employee motivation

A plethora of research has accumulated over the past few decades that indicate that there is an important relationship between compensation and employee motivation as well performance.  A great compensation plan is essential to the keep the employees motivated as well as to manage their performance. Overall, compensation is critical to high productivity and sooner or later most organizations realize it that employee satisfaction is important. Employee satisfaction means great employee performance as well as high organizational productivity. However, there is a critical link between compensation and employee motivation.

 While organizations have started focusing on managing their human resources in a manner so as to  help them give their best, the criticality of compensation in this regard  gave rise to the need for hiring, compensation, and benefits managers who could design suitable  compensation and benefits programs  for the organization. 

Significant planning goes into compensation and benefits designing and it requires that the needs of the organization are analyzed and recognized first. This makes the role of the compensation and benefits manager all the more critical since the needs from organization to organization differ.