Compensation and Strategies
Compensation and Strategies-Compensation can be defined as a well-defined way of offering monetary or financial value to workers in exchange for the services they have provided. Compensation is always aimed at helping the organization in recruiting their new or fresh work team, enhancing job performance, as well as job satisfaction. In short, it is designed to motivate the workers so that they can remain focused in their work thus giving a better quality of job which in turn will positively influence the output realized by the firm which is known to play a major role in shaping the competitive status of any given organization. Compensation is used a frame by the directing body for a wide range of reasons that are all geared at enhancing the existence of the firm. It may be modified based on the requirements, goals, as well as the resources available for the business. Compensation may be used as a tool to hire and maintain very competent and qualified workers to the organization. In this light, it helps in making the organization to be more competitive than others by having a workforce that has the right skills to handle the various jobs in the firm and produce a high quality job for the firm.Compensation and Strategies
Compensation may also be used in heightening or sustaining the motivation or satisfaction levels in the employees. By giving the right amount of salaries or reward to the workers, their motivation is raised making them pay more attention at bettering their work, which in turn promises to give better results for the firm. Moreover, it can be used as a tool to motivate the workers into giving their best labor performance while working for the firm. Compensation may also be used as a way of attaining internal as well as external equity for the firm. It is also used to lower the turnover and encourage all the people in the firm to remain loyal to the organization. This is achieved by the firm the workers the right amount of pay that they always feel safe and contented working for the organization which helps in raising the productivity of the organization.
However, I must point out that the availability and the price for any qualified job applicants in any vacant posts are determined by the various market factors that cannot be regulated by the boss or employer. This has forced bosses seeking to employ workers into their firm to pay attention to what the other employers are offering as compensation for the same job application. It is also worth noting that there must be a balance between the financial value that the boss is willing to give out and the satisfaction that the employee demands or feels must be attained for him or her to stay in the organization willingly. On the contrary, some employers are always driven by the inner desire to save income, and they may decide to lower the minimum salaries paid to their laborers at the expense of the motivation and satisfaction. This always brings about chaos in the organization as the employees will start revolting against the governance system used in the organization which will detrimentally affect the organization. Compensation can also be used to pay one for his or her outstanding job performance in the organization. This may take the form of bonuses, gain sharing, and commissions.Compensation and Strategies