Employee Compensation
Employee compensation applies to the incentives that employees receive in return for the support they give their workers (cash, holidays, etc.). Employee compensation for each company is usually one of the growing expenditures or expenses.
5 Factors that affect employee compensation in Nigeria Public Service
- Cost of Living:If living costs are high that is, when inflation is increasing, employers are under tremendous strain to raise wages and salaries by inflation rate, as government action in the form of an income freezing effectively reduces their purchasing power in the short run.
- Comparability:Employees (trade union) and managers may take into account the equivalent wage that is earned elsewhere.
- The bargaining power of the trade union:It relies very much on the negotiating power of the syndicate to influence the decision to make a pay structure.
- Labour Market Conditions: The overall economic condition contributes to shifts in an economy’s labor markets.
- The ability to pay:Organization affects its ability to meet the pay and benefit commitments.
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