Compensation and Benefit Systems: Analyze the Traditional Bases for Pay

Name: University: Course: Tutor: Date: Compensation A compensation system determines the amount of pay given to the individuals in the organization. Compensation motivates the employees to work hard and to be more creative and use their talents for the benefit of the organization. Traditional methods of compensation involve set salaries and wages with regular increases. Base pay is the fixed compensation that is paid to an employee for the job responsibilities he has performed, it may be inform of salary or wage this is given to an employee regardless of the performance (Martocchio 17). One of the most common pay systems is the merit pay system which uses a performance evaluation as the basis for determining the size of the individuals raise; this system motivates the employee to do the best in his job as the reward is based on job performance. Another traditional system of compensation is the seniority system which rewards employees wi...