What is the primary aim of compensation and benefits in human resource management?

The primary aim of compensation and benefits in human resource management is to attract and retain employees. Effective compensation strategies are designed to offer competitive salary packages and benefits that meet the needs and expectations of potential and existing employees. When organizations provide attractive compensation and benefits, they position themselves as desirable employers in the job market, making it easier to recruit top talent.

Retaining employees is equally crucial, as high turnover can be costly for organizations. Attractive compensation packages help keep employees satisfied and engaged, reducing the likelihood of them seeking opportunities elsewhere. In turn, this stability can lead to increased organizational effectiveness and a more positive workplace culture.

While aspects like workplace diversity, compliance with labor laws, and employee creativity can be influenced by compensation and benefits practices, these are secondary effects rather than the primary objective. The core focus remains on the ability to draw in skilled workers and maintain a committed workforce through well-structured compensation and benefits strategies.