To motivate the employees to increase the organizational productivity.
When most people hear the term compensation they think about "what a person is paid". Although this is true, it is only one aspect of a complex topic. Compensation includes not only salary, but also the direct and indirect rewards and benefits the employee is provided with in return for their contribution to the organization.
The main difference between compensation and benefits lies in the aspect related to monetary value.
In other words, benefits do not involve money but are presented in form of value
Compensation refers to pay or the exchange in monetary terms of the work performed by the employee and is paid by the employer. ...
Ranking or Job Comparison
Grading or Job Classification
The Job Evaluation is the process of assessing the relative worth of the jobs in an organization. The jobs are evaluated on the basis of its content and the complexity involved in its operations and thus, positioned according to its importance.