The modern labor market is characterized by continuous and rapid changes. Consequently, new trends are emerging in defining working conditions and business offers for employees.

Aspects that used to be an optional segment for employers for additional investment now are set as necessary investments in terms of development and achievement of basic company goals. Employers are investing more and more in the employee reward system. Over the years, this aspect proved to be important for business sustainability and development, all because of the impact on employees – the most valuable resources of any organization.


What is the Comp&Ben system?

In a broader context, compensations represent any reimbursement for the job done or achieved results. On the other hand, benefits do not depend directly on employee’s results but represent the unique system within every organization available to every employee only because they are members of the specific company.

Regardless of the difference, both systems play a significant role in increasing motivation and retention rates, also employees’ engagement and productivity are directly connected to the company’s success. Today, employers have a great number of choices and opportunities to create different Comp&Ben systems. The presence of this diversity creates the possibility of designing a very competitive compensation package, specific combinations of components, which have a goal to increase the productivity and satisfaction of employees. Considering the heterogeneity of human resources, the creation and implementation of an adequate and adjusted Comp&Ben system represent a very complex process that requires a systematic approach. Therefore, every investment in this system gets a profit, and ROI could be evaluated.

Effects of a successfully set reward system:

  • Increasing employees’ engagement and productivity – successfully implemented Comp&Ben system directly influence employees’ engagement in a way employee feel responsible for every personal result that is followed by a specific compensation;
  • Increasing employees’ satisfaction – providing benefits that are following employees needs and values leave an impression company cares about employees;
  • Employees retention and talent attraction – competitive Comp&Ben system differentiates a company on the market and increases talents’ interest in the brand which leads to lower costs of recruiting and selection process.

Different Comp&Ben package for different profiles

The competitive compensation system together with benefits is characterized by adjustment determined primarily by the business sector, position, and level of the position. In the process of designing the system, key factors are employees’ motivation and needs. Something important to managerial roles can be insignificant to one employed in the Blue Collar position. Therefore, it is necessary to pay attention to who are the users of provided compensations and benefits.

By higher responsibilities and duties, managerial positions are followed by higher salaries so, additional compensations and benefits are connected to intrinsic motivation. Never the less, different types of Comp&Ben increase managers’ satisfaction and engagement.

Some of the key motivators for managerial positions are:

  • Personal and professional development (formal/non-formal training)
  • Private health insurance and pension fund both, for employees and their family
  • Company car
  • Stock option
  • Profit-sharing
  • Paid vacancy for professional development
  • Student’s scholarship for employees’ children
  • Coaching and psychological sessions
  • Expert counseling (legal, finance, medical, etc.)

All represented benefits have a significant influence on employees’ need for work-life balance. Consequently, it intensifies the sense of loyalty to the company and creates a common system of values. The company has the goal to retain its employee so it is necessary to invest in long-term incentives and create a long-term plan for these employees.

On the other hand, Blue Collar positions demand a different approach. The key motivators for employees in these positions are, before everything else, stability, and job security. Except for these, several compensation and benefits forms have equal influence on employees’ satisfaction and engagement:

  • Bonuses (usually monthly)
  • Medical examination (systematic/specialistic)
  • Private health insurance
  • Additional days of annual leave
  • Family day (organized non-formal meetings)
  • Team building
  • Rewards, public and personal praise for achieved results


The IT sector is one that dominates regarding the number and diversity in present benefits. Every day we have an opportunity to get in touch with new conditions offered by employers in this sector.  All of this has a goal to attract high-quality professionals on the market. From remote work to relaxation time in the game-room, IT engineers get almost everything they want. On the other hand, because of their frequency, most of these benefits lost their purpose given that there is no connection to the real needs of employees. Studies show that regarding the mentioned benefits there are a few non-material factors with a high level of influence on employees’ motivation:

  • Challenging projects
  • Innovative and rare programming languages
  • Technical competency of Team Leads and Project Managers


The path to advancement

In addition to compensation, benefits are crucial in talent attraction and retention of employees. Further, maybe even more important is their influence on employees’ motivation and engagement. Properly designed Comp&Ben system represents a powerful weapon of every organization.

Before designing and implementing the system, it is necessary to analyze company goals and the structure of the employees. All individuals in the organization contribute to company success. So, a fair rewarding system is a necessary element in every business.


How to manage the Comp&Ben system efficiently?

  • Focus on employees’ needs – conduct a detailed analysis of values and motivational factors through individual and group meetings.
  • Make your employees feel appreciated. Make their work and work challenges valued in the right way through systematic evaluation.
  • Connect employees’ productivity to direct compensation and revive the causality. In this way, employees will make more effort to get additional compensations.
  • Be transparent and clear about the provided benefits and their utility. Help them to use benefits properly.
  • Evaluate the efficiency of your system through feedback from your employees, and most important – revised it when it is needed. The semi-annual or annual survey on the significance of benefits and their usage is a great way to evaluate the success of implemented strategies regarding benefits. Also, evaluate the costs of the benefits system – does ROI have desirable value?

Compensation and benefits are efficient and profitable only if they are following employees’ needs. Through higher commitment and engagement it consequently leads to better results and profit increasing. Otherwise, becomes a huge cost. Therefore, systematic planning, based on the present needs of employees represents the key to manage efficiently and achieving competitiveness.