Compensation administration refers to the management of an organization's compensation programs, policies, and practices. This includes the design, implementation, and evaluation of salary, bonuses, benefits, and other forms of compensation offered to employees. The goal of compensation administration is to attract, retain, and motivate employees while aligning compensation with the organization's objectives and budget.
Effective compensation administration requires consideration of internal and external factors such as the job market, industry norms, legal requirements, and the organization's financial resources.
Sales management has access to three main compensation plans: salary, commission, and combination (salary + incentive) plans.