kompensationssystem

Kompenserationssystem, or compensation system, is the set of policies and practices that determine how an organization pays its employees. It covers base salary, variable pay such as bonuses and incentives, benefits, and other rewards. The system is designed to attract, retain, and motivate talent while aligning with the company’s strategy and ensuring internal equity and external competitiveness.

Key elements typically include job evaluation to determine relative worth, pay structures with grades or bands, and market-based pricing to reflect external pay levels. A balanced pay mix combines fixed compensation with variable rewards tied to performance or company outcomes. Non-cash rewards and benefits, such as retirement plans, health insurance, and flexible work arrangements, are also part of the system. In many organizations, performance management is linked to pay through merit programs and incentive plans, and equity-based compensation may be used for selected roles.

Design and governance involve articulating a pay philosophy, budgeting, and clear decision rights. Processes include regular reviews of jobs and pay, data analytics to benchmark against peers, and compliance with labor laws, equal pay acts, and tax considerations. Transparency and communication with employees are important, as are safeguards against bias and pay discrimination.

Variations exist across industries, company sizes, and countries. Compensation systems must adapt to local regulations, tax rules, and market conditions while balancing budgetary constraints with strategic objectives. In practice, compensation is part of the broader concept of total rewards, which also encompasses recognition, development opportunities, and a positive work environment.