AbstractThis discussion will analyze the impact of various compensation methods and benefit programs on employees and organizations. This paper will relate salary and benefit administration strategies to organizational culture and performance.
Total Compensation Methods PaperCompensation and benefits are very important to employees in the current workforce. In this market, employees are faced with choosing an organization to work for, and what makes or breaks that decision are the compensation and benefit packages offered. Most of these organizations use different strategies regarding benefits and compensation in their organizational cultures.
Compensation MethodsMost compensation methods are designed by the organization to positively affect the bottom line of the business. Some methods permit quick change as markets, products, and services change. The compensation methods need to provide strong, measurable benefits to the organization and assist in achieving its goals.
An organization is constantly evaluating the impact of the compensation methods on employee performance. This ensures that the programs are having the desired results and if not, what changes need to take place. The methods need to be flexible enough to change with the industry and as business evolves (Workforce Management, 1995-2006). In addition, the compensation methods need to be competitive to make sure the organization can attract and retain the kind of talent needed to achieve the stated goals for the organization.
Executives are coming to expect a bottom line impact from compensation programs (Compensation and Performance Management, 2006). For example, if an employee is not performing his or her job, the reason could be more than just lack of compensation. Therefore, just by providing the appropriate and updated compensation package, one cannot be sure that the job is being done. There are times that one needs to tailor and develop a custom-made compensation package for a group of employees in a company. The organization needs to be fast on its feet to change with the fast pace of the market. If one does not take care of valuable executives or employees, chances are that some other company will. This is not a threat from employees. It is simply accepted behavior given the economy and the competitive environment.
The ideal compensation method would be to create a direct relationship between pay and performance and positively affect employee motivation. Our organization had to interview all employees and office workers to have an understanding of what sort of compensation methods are competitive and desired. One needs to check the market constantly and update the package accordingly. In the end, having a competitive compensation method benefits not only the employees but the...