Compensation Management Objectives

Meaning & Definition

Compensation management objectives are the targets that an organisation hopes to reach through its pay and reward policy. Comp Objectives guide how salaries, incentives and benefits are established, administered and assessed, to encourage employees and improve organisational performance.

Key Objectives of Compensation Management

• Offer a competitive salary to attract talent who are qualified and competent.
• Pay a competitive wage to retain employees and create an environment for loyalty.
• Join together both pay and performance, skills, and contribution for fairness between all employees.
• Compensate employees properly to meet business goals and objectives as well as the financial goals of the organisation.
• Plan for and manage all expenses related to payroll and benefits in the planned budget.

Governance & Policy Alignment

No direct statute governs this term.

Compensation, reward, and performance management policies guide this organisation in terms of structured salary incentives and review cycles to be open, impartial, and honest.