ABSTRACT
Compensation is one of the most challenging areas of human resource management. The compensation system, consisting of pay and benefits, should attract and retain a competent workforce, build motivation and performance, and control costs.[1] Most organizations in the public sector have job-based classification systems, grant annual pay increases or "step raises," and offer conventional health insurance and defined benefit retirement programs. In recent years, however, emerging approaches in delivering pay and benefits have begun to gain acceptance.
