Introduction and compensation basics

0:27 Hello learners, welcome back to the course on AI in human resource management. We move to a new module where we'll look into the emerging trends of AI in HRM specifically. We'll look into the critical aspect of compensation and benefits. How AI is facilitating compensation and benefits. We touched upon this in the previous module, but in this lecture specifically, I would like to discuss it in a detailed fashion. I would like to look into what compensation is, what the different aspects are whereby AI is now existing and playing a vital role.

0:58 We'll also look into some typical case studies—how predictive analytics is used, how sentiment analysis is used in different organizations in real time, and how it is actually facilitating the compensation and benefits domain in HRM. And we'll also look into a demo of one critical facilitator, if I may use the word, which is enhancing the compensation and benefits part overall within an organization. So we'll look into all these things in this particular lecture. I'm Dr. Abraham Cyril Issac.

1:32 I'm an assistant professor at the School of Business, Indian Institute of Technology, Guwahati. Now, let's start with the basics. Let's understand what specifically compensation and benefits are. Many a time what has happened is that If you look into the traditional organizational structure, it is more of the carrot and stick policy. And it was more of the stick. It was more of the punishment. It was more of the victims or the directives that were given prominence. But gone are those days.

1:58 Now people would like to see reinforcement. People would like to see instant gratification. This is the era of instant gratification when you're looking into some particular job if I'm doing the job I should get some recognition suddenly this is what or immediately this is what every you know present day employee is looking into on this note we'll look into what compensation and benefit is and how it has actually transformed itself in giving the employee the real reason to stick into the particular organization Let's look into compensation and benefits with respect to HRM.

2:29 When you are talking about compensation, please understand compensation and benefits are critical components of human resource management that typically play a significant role, not only in motivating employees, but also even in attracting new employees and even retaining them. So compensation refers to the monetary rewards that employees receive In exchange for the labor. So this could include anything like let's say salaries or wages, bonuses, commissions and any other financial remuneration. The benefits, on the other hand, encompass non-monetary perks provided to employees.

3:00 It could be, let's say, in terms of health insurance, retirement plans, paid time off, or other forms of support that enhance the employee experience. So together, compensation and benefits form a total rewards package that organizations offer to their employees. So this particular package Not only is it there to meet the legal requirements of any organization, but also to create a competitive advantage in the labor market by promoting employee satisfaction and loyalty. So when you look into compensation and benefits, this basic understanding you should have when we discuss more on the AI facilitation.

3:56 When you are looking into the key components of compensation, as I already mentioned, you have a monetary component directly correlating with compensation