Describe how wages, salaries, incentives, and benefits programs help companies attract and keep skilled workers

What will be an ideal response?

Answer: A major factor in retaining skilled workers is a compensation system, the total package that a firm offers employees in return for their labor. Wages are paid for time worked and a salary is paid for discharging the responsibilities of a job. Incentive programs are designed to motivate performance and include bonuses, merit salary systems, pay for performance, profit-sharing, gainsharing, and pay-for-knowledge plans. Benefit programs include workers' compensation insurance, retirement plans, and cafeteria benefit plans. Finding the right combination of compensation elements is always complicated by the need to make employees feel valued, while holding down company costs.