Compensation management is a key activity for supporting all workers and talent management processes. Determining and providing the appropriate compensation for each person, whether it involves base pay, merit pay or variable pay and incentives or bonuses, is critical to being able to attract and retain productive members of the workforce – full- or part-time employees, contingent workers and contractors alike. Incentive compensation tied to objectives often is critical in areas such as call centers, sales and field service. The complexities of compensation make more difficult the core challenge faced by human resources departments: keeping employees productive, satisfied and motivated.