Question

How is a strategic compensation plan different from on that is nonstrategic?

Answer 1

Compensation and benefits are key factors used by the human resource department of any company while recruiting and retaining the best talent for any level of job in every industry. Employers know that it is tough to find and keep good talent. As a result, more companies are offering very competitive benefits packages. It is quite difficult for a small company to sustain to acquire a talented brain in comparison to big companies. they can't compete financially but they can strategically plan to compete with compensation and benefits programs. Strategic Compensation is a human resource management approach to employers use to attract, retain and grow talented employees while aligning their behaviors and job performance with the organization's goals and objectives.

on the other hand non-strategic compensation or tactical compensation plan, mainly deals with a goal-achieving long-range goal by sale, developing a new product and marketing. it isnot exactly money related plan. it uses verious other technique to achieve its goal by including time off, flexible work hours, coaching and training opportunities, recognition and awards, some fringe benefits and other perks (like catered lunches or a company car) that may not be measured in dollar amounts as part of a compensation package but are still valuable to employees and make a difference in the workplace culture and overall attraction of the job opportunity.