HRM 430 Compensation and benefits Your assignment is to write a short paper (500-750 words) defining compensation, compensation philosophy, and critical components of a compensation strategy. Provide one solid example of an effective compensation practice/policy. Your paper will be graded on the following:

definition of compensation;

overview of compensation philosophy;

critical components of a compensation strategy; and

example of an effective compensation practice/policy.

Compensation

Definition

As defined by Garry Desler, the compensation is all forms of 'pay' that goes to employees, including the additional employment benefits in form of direct or indirect financial compensations. Compensation is mostly a tool used for attracting, retaining or motivating the employees.

Overview...