Salary management is the process of ensuring that an organization’s salaries and bonuses remain competitive, appropriate, and equitable. It also involves managing company benefit programs to make sure they meet the needs of the current workforce. Compensation managers are responsible for working with employment data and keeping up with complex benefits administration rules and regulations.
Salary management plays a large role in HR because it can impact employee retention, the hiring process, company performance, and team engagement. Compensation managers are an important asset to the company’s success. If salary, bonuses, and benefits aren’t managed properly, employees might find much better packages elsewhere, As a result of this the performance and job satisfaction could decline, and several other factors could have a negative impact on the business.