Management compensation

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  • There are several different compensation packages that managers may choose for their employees. These compensation packages are made to give a sum of money or some sort of compensation for the work that their employees have done. Compensating your employees shows them that they are appreciated and that their work does not go unnoticed. Showing this appreciation for you employees and the work done can boost their morale and their performance. The choice of time horizon is one that looks at current performance compared to future performance in which giving them a bonus now or utilizing another means to keep an employee motivated to try and reach that compensation. Another option here is the choice of fixed versus variable bonuses in which fixed bonuses is based off of each percent above the minimum of the return on investment. However, a variable bonus maybe more suited as different uncontrollable things can happen in which a variable bonus can be flexible compared to a fixed bonus. Ultimately whatever type of compensation that is utilized most employees are grateful for the gesture of receiving anything for he work that they have done.
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