Question

How can STRATEGIC COMPENSATION support companies to save 10% of overall costs?

Answer 1

A compensation strategy lays out your organization's point of view on how you will determine pay and benefits for employees. It aligns all of your compensation resources to your business goals, helps you decide where you want to compete, how competitive you need to be and what you choose to reward.

There are different types of compensation :-

1. Hourly (Wages)
   1. Traditionally used with unskilled and semi-skilled labor
   2. No expectation of ongoing employment
   3. Non-Exempt for overtime wages
   4. More frequent pay periods
2. Salary (Wages)
   1. Designed for more well educated positions
   2. Employees are customarily involved in management
   3. Expectation of loyalty from employee to the company
   4. Expectation of priority for retention and ongoing work
   5. Many salary based employees are Exempt from overtime compensation
   6. Less frequent payroll runs
3. Commissions
   1. Oriented towards production
   2. Workloads are inconsistent
   3. No overtime
   4. No expectation of ongoing employment
   5. No loyalty from either party or duty to perform
   6. Very common in certain industries
4. Bonuses
   1. Goal driven
   2. No expectation from employees

So strategic compensation support companies to save overall cost.