Question

How do you think an employer's compensation system should support its overall business strategy? In other words, how do the elements of the system a company uses to compensate its employees need to relate to the attainment of its strategic business goals? Should compensation systems be different from one organization to another based on what they are trying to accomplish in order to be successful?

Answer 1

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An organization makes a compensation strategy to elaborate on how they view and manages the employee wage and privileges.

The strategy is that there should be a guide and a written document which clearly defines the organization strategy.

This compensation policy motivated current employees and attract new ones. The key in designing the compensation policy needs vision, plan and direction. The compensation strategy of any organisation indirectly reflects the values of its employees.

There are seven directions to a beneficial compensation policy

allowance of budget

Develop the ranges of income

Income audits

Some Profit packages should be there for employees

A great Operation Management system

Legal observation on the strategy

Structured surveillance of the compensation strategy.

The compensation strategy hold an ideology that the compensation strategy should be equal and fair for all the employees,

Likewise, it should be relatively comparative to what other employees get for a related job in different organisations.

So it depends on the organization to an organisation.

Any organization design it's compensation strategy on the basis of its competitive advantages. The compensation strategy of any organisation indirectly reflects the values of its employees.