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For motivating the employees we should follow a good compensation strategy that includes a balance between internal equity and external competitiveness. Compensation and benefits affect the productivity and happiness of employees, as well as the ability of our organization to effectively realize its objectives. It is to our advantage to ensure that our employees are creatively compensated and knowledgeable of their benefits. There are two kinds financial and non - financial and in financial includes both direct (wages and salaries, cost of living increases, bonuses etc)and indirect benefits (insurance plans, paid absences, security benefits like insurance etc) and non - financial includes the job position(challenges, interesting duties and responsibilities, feeling of achievement, etc) and the work environment (fun and effective co workers, alternative working arrangements, flexible scheduling etc)
