Page 116 - Appreciating Organization's Biggest Assets

Many for-profit and a few non- main motive of Human Resources
profit organizations use incentive is using compensation as a tool
compensation to raise executive to make sure that the company is
engagement with organizational getting best candidates, employees
goals and reward them upon are retained, and internal morale are
accomplishing such goals. The idea kept up.
of incentive pay could not be easily The IT (Information Technology)
adapted to a non-profit mission- sector is the most flourishing sector
based setting because it is frequently till date. Despite being around
associated with rewarding workers since the late 1980’s, the IT sector
for generating more revenue for the is considered a young place for
for-profit organization. However, innovation, entrepreneurship,
studies suggest that non-profit and growth. Majority of the fresh
organizations may be using incentive graduates are attracted to the IT
compensation more frequently. sector after graduation.
The employee compensation is One of the main reason for this
defined as any money or benefits attraction of the freshers is the
paid to an employee in exchange compensation packages. They are
for their work. For an employee designed in ways that can be termed
compensation is everything that innovative and path breaking.
they get for the work they put in. The IT sector bundle the basic
Different businesses have different compensation components and
methods to compensate their perks and benefits in novel and
employees. Some employees earn unique ways.
a wage and some employees earn a
base salary and then receive bonuses Then came in the COVID-19
or commissions. In some cases, which did not leave any working
compensation can include things sector unaffected. The IT sector
like stock, company cars, or even a was affected by the pandemic in
housing. both positive and negative ways.
If we look at the negatives most of
From a Human Resources the IT start ups did not survive the
standpoint employee compensation pandemic as they did not have that
looks slightly different. Definition of amount of backup capital to run
employee compensation in human when there was no business. But
resource management is “a tool that on the other hand, the IT giants
can be used to make the company not only survived the pandemic
better and meet its needs.” The but also can out of it with lot more

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