Describe your reaction to the following statement Compensation has no bearing on a company s performance My initial reaction to this is that compensation has a direct link to the performance of the company However even when a company seems to be doing well they may not be in the position to offer raises and or bonuses At work this is the time of year that we have to complete our written performance review for 2011 Employees are looking very closely to the financial results of the company Many have not had bonuses or raises in quite some time even though the company has been performing well I think that just because a company is performing well that doesn t mean that all employees are entitled to higher compensation If the employee isn t performing well they may not deserve to be compensated There is usually only a set amount of money in the bonus pool and management has to decide who is entitled to the limited funds I can t wait to find out how management goes about figuring out who deserves what Response 2 I think compensation has a big bearing on company performance and in return company success A way to attract employees and keep employees is by the compensation factor salaries and benefits that meet the current market There are legal required benefits a company must offer such as workers compensation and Family Medical Leaves Other type of compensation that attract employees for company success is life insurance medical benefits 401K retirement plans good paying salaries etc these type of compensations help a company and employee performance and keep employees loyal