The Difference between Philippines and Japan’s Perspective and View to Compensation and Benefits Process Abstract As the organizations continue to face mounting competitive pressures, they seek to do more with less and do it with better quality. As goals for sales volume, profits, innovation, and quality are raised, employment growth is often tightly controlled and in many cases, substantial cuts in employment have been made. To accomplish more with fewer employees calls for effective management of human resources. Typically, the employee compensation system of Philippines and Japan, the focus of this chapter, plays a major role in efforts to manage human resources better. Introduction We all know that every country has its own preserved or adapted cultures. Cultures may differ from many things, like celebrating certain occasions or engaging with our daily lives. But our main focus here is the perspective and view of Japan and Philippines when it comes to compensation and benefits. In today’s society, the compensation packages that businesses offer to their employees play a very important role in the company’s ability to attract top talent as job candidates. Top performing employees all over the world greatly impact the competitiveness and productivity of a small business. The specific components of an attractive compensation package will of course vary per employee. A high base salary may attract a top job candidate that is twenty something and single, while a job candidate with a family may consider a flexible work schedule extremely important. According to John Rossheim of Monster.com, “recruiters should research a job candidate's current or prior salary and benefits to get an idea of what is important to the candidate.” And according to Rose Johnson as well, “compensation can include monetary and non- monetary components”. Compensation often includes an employee’s base salary and additional benefits, such as health insurance, retirement plans and performance bonuses. The compensation packages a business offers to employees affects the company’s recruitment rate, retention rate and employee satisfaction. Several federal laws affect the compensation that businesses offer. A business owner should understand the importance of compensation and the prevailing laws to remain competitive in the market. Methodology We gathered all the data and information by using exploratory and descriptive type of research. We chose exploratory because we tend to expand our understanding to the issue, although it may not be statistically measureable, it will give us richer quality