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The Importance of Compensation and Benefits

By Amanda Richmond, Farm Business Management Specialist, Kindersley


When deciding how to compensate employees, it’s important to develop a consistent and fair approach to attract and retain the right people for your business.

It is important your employees feel their compensation is fair in relation to their co-workers and industry standards. It isn’t always possible to provide employees completely equitable compensation, but it is important to consider when hiring new employees or increasing wages for existing employees.

Compensation ranges from wages to anything that has a positive effect on the health and general well-being of employees. Non-monetary compensation can come in many forms and could be tailored to the preferences of the employee; some examples include: recognition, involvement in decision making, discounts, training in other business areas, work/life balance and benefits packages.

There are two kinds of benefits that can be provided to employees: statutory benefits and optional benefits. Statutory benefits are mandatory benefits such as employment insurance and Canada Pension Plan. Optional benefits are benefits that the employer can use to help attract and retain employees.

Optional benefits packages can be tailored to meet the needs of the employees and can vary from one employer to the next. The most common benefits offered are health and dental plans, life insurance, short and long term disability plans and employee assistance programs.

In addition to wages and benefits, employers can offer oth45 perks to their employees. These are typically monetary or non-monetary perks that are offered due to exceptional performance or long-service.

As an employer you can use these options to create a competitive compensation package that will help with recruiting and retaining the right people for your business.

For more information stop by the Kindersley Regional Office or contact Amanda Richmond at 306-463-5446 or by email at or contact the Agriculture Knowledge Centre at 1-866-457-2377.

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