Compensation Strategy Research Paper Example | Topics and Well Written Essays - 250 words

Compensation Strategy - Research Paper Example The second part of a total compensation package is fringe benefits. Some of the fringe benefits that a company can offer its employees as part of a total compensation package are vacation and sick days, medical plan, dental plan, profit sharing, stock option plans, maternity and paternity leave, performance bonuses, wellness program, flexible time, and telecommuting. A profit sharing plan divides a percentage of the net income of the company into a pool that is shared equally among the workers, while a stock option plan allows the employees the chance to purchase stocks of their employer at a discounted price (Dol). These two fringe benefits provide incentive to the employees to produce more because the employees will benefit if the company achieves greater profitability. Flexible time gives the employees a chance to set their work hours during a week. The use of a total compensation package helps a company accomplish its goals by providing the employees with greater