Running head: VISIONING BEFORE STRATEGIZING
VISIONING BEFORE STRATEGIZING
Visioning Before Strategizing
Khanh K. Nguyen
September 23, 2019
Visioning Before Strategizing
Business premises and companies use compensation strategy as a tool for defining and managing their employee’s benefits and payments. Compensation is used as a tool of motivating the employees and it also attracts new employees. Compensation includes all aspects of benefits of employee and should not be taken as a mere salary.it covers retirement benefits, health benefits and all bonuses. This compensation package also includes all non-salary benefits and tuition reimbursements. For new staff in a company, here are several principles which I will use as a human resource manager as a guide in compensation strategy.
Budget should be allocated accordingly. This budget allocation will determine the amount of money which will be used for compensation and how much will be used for salary.it will also determine the percentage which will be spent on incentives and other benefits. The budget should be allocated according in such a way, a particular amount will cover salary, another one labor and the other will cover all benefits (Aquila & Rice,2017).
Developing salary ranges
A salary range will be developed to make sure that the business is competitive and that the salary pay is unique from other companies.it will be of great importance for an organization to benchmark jobs which a similar in the same company. This will help in developing pay structure.to determine the salaries average, the research for salary ranges is determined from within the company(Shapiro, 2016).
Markets usually change each and every time. Performing routine audits on salary will be of great importance in ensuring that salary ranges in a company reflect timely compensation trends. Auditing will determine how competitive our job is compared to other job and what the job market demand.it is paramount to keep a check in the changes trending of the markets. Failing to check the markets and keep up with the competition will make employee loss their value in the job market.
Having performance system
Having a well-structured performance record is important in such a way that it ensures that the employees in the company meet the corporate objectives and they can be evaluated on regular basis. This evaluation will make sure that the employees are highly competitive. This will paint a good image of our company (Prentice,2018).
A well compensation strategy needs to be compliant to the law and legal authority.it will incorporate all requirements needed by law. Being compliant to the legal laws, a compensation strategy will eliminate all biases which are made in hiring new decisions.
For a company to be the best in an area, it has to keep the policies the same.in this way, it requires a human resource manager to develop compensation strategies will give a good image of the company. The compensation strategy developed should well structured, it should be also law compliant and competitive in such a way it motivates the employees and attracts new ones.
Aquila, A. J., & Rice, C. L. (2017). Compensation as a Strategic Asset: The New Paradigm. John Wiley & Sons.
Prentice, R. (2018). Workers’ right to compensation after garment factory disasters: making rights a reality.
Shapiro, B. (2016). Using traditional narratives and other narrative devices to enact humanizing business practices. Journal of Business Ethics, 139(1), 1-19.