Scholars have viewed compensation in different dimensions which is influenced by how country’s laws that govern compensation are seen by researchers around the globe. However, compensation is a reward that an employee awaits
after putting his/her efforts to achieve enterprise goals and objectives. In the quest to search for a befitting definition of compensation, a human resource scholar Ivancevich (2003) elucidated that “compensation management is a human resource function that deals with every type of reward individuals receive in exchange for performing organisational tasks. Milkovich (1999) viewed compensation as wages and benefit given in exchange for effort or work. Bernadin (2007) on his assertion argues that compensation refers to all forms of financial returns and tangible benefits that employee receives as part of employment relationship. McNamara (2006) in Odunlade (2012) submitted that “compensation includes issues regarding wage and/or salary programmes and structures accruing from job descriptions, merit-based programmes, bonus-based programmes, commission based programmes and so on, while benefits typically refer to retirement plans, health life insurance, disability insurance, vacation, employee stock ownership plan and so on”. Human resource researcher Bhattacharyya (2007) contended that compensation is a methodological approach to assigning a monetary value to employees in return for work performed. Bhattacharyya (2007) also argued the compensation is a term used to describe not only employee salaries but also all other benefits received which he termed remuneration.
In words of Cassandro (2008), “compensation is the area of human resources management which involves making decisions about pay that are fair, equitable and competitive with current market rates; providing employees with incentives to improve performance; ensuring that benefits packages are cost effective and serve to motivate employees, and making certain that all compensation-related policies and programmes comply with government requirements”. Cassandro (2008) went further to argue that “compensation may be in the form of financial returns, tangible services, and benefits received by employees as part of their employment. It does not include other forms of rewards such as recognition and interpersonal relationships etc”. HR Guide to the Internet (2000) defines compensation as a systematic approach to providing monetary value to employees in exchange for work performed. Balkin and Cardy (2006) in Odunlade (2012) argue that employee compensation is comprised of base pay and fringe benefits. Anumudu, Dialoke and Joseph (2016) accentuate that compensation is money received for the performance of work plus many kind of benefits and services that organisation provide for their employee. Cascio (2007) in Anumudu, Dialoke and Joseph (2016) argued that compensation includes direct cash payment, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher level of productivity. However, American Compensation Association (1995) in Anumudu, Dialoke and Joseph (2016) further defined compensation as the cash and non-cash remuneration provided by an employer for services rendered.
10 Journal of Strategic Human Resource Management Volume 6 Issue 2 June 2017