Chapter 6 Compensation: paying for the “Best and Brightest”

Abstract

Compensation refers to “all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship” (Milkovich & Newman, 1999, p. 6). A more specific definition is provided by Edwin B. Flippo, who has defined compensation as “the adequate and equitable remuneration of personnel for their contribution to organization objectives.” He identifies its three components as: basic wage or salary (to attract qualified candidates); variable compensation (to motivate job performance); and supplementary fringe benefits (to retain talented staff) (Flippo, 1984, p. 281). Table 6.1 identifies the functions of these three components of compensation.

Citation

Quah, J.S.T. (2010), "Chapter 6 Compensation: paying for the “Best and Brightest”", Quah, J.S.T. (Ed.) Public Administration Singapore-style (Research in Public Policy Analysis and Management, Vol. 19), Emerald Group Publishing Limited, Leeds, pp. 97-125. https://doi.org/10.1108/S0732-1317(2010)0000019011