In this tentative cost-effective period, it really comes as a surprise that a Human Resource Professional in almost all places have to face some kind of compensation based issues. If specifically viewed, the issue that raises such a situation is mainly money which is mainly lacked. In many business organizations, profits are down to a huge extent hence, it has become quite complex for employees of those organizations to encounter upon the specific payroll requirements. It is due to this, that challenges do develop and those are mainly interconnected with the input of the compensation plan into the business. Tight budget or no money: For many companies, their solution in experiencing a budget shortfall was simply reduce the number of employees either through dismissal or through attrition. In many companies, existing positions were totally eradicated.