Compensation is also advantageous to the employee in a way that it injects self-confidence.
Offering different schemes of rewards etc is a way of acknowledging the efforts of employees
which helps the employee to ponder on the point that he/she as well as his/her work is being
valued by the organization. It also works as stress reliever. When an organization is offering
different sorts of insurances to the employee, it will relieve many of his fears.