Compensation and Benefits Strategies
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Compensation and Benefits Strategies
The key factors used to recruit and retain the best employee at any level of job in an organization are compensations and benefits. It is usually very tough for employers to maintain and keep talented and productive employees. Therefore, many organizations typically give high valued packages of benefits (Mello, 2019). The discussion handles the two compensation and benefits strategies and how they contribute to the success of an organization.
The strategies employed in an organization determines its success. The compensation and benefits strategy that I can recommend for an organization to succeed is through setting and reviewing a budget. It involves identifying the overall amount the company spends on employees. The productive employees usually pay themselves through their efficiency of work they do. Calculate all costs of the employee, such as bonuses and compensations, taxes, payrolls, and any other existing benefits. Define what you can offer (benefits and compensation) basing on priorities. Then, determine the amount to save and pay the employees on the degree of loyalty and performance (Mello 2019). The strategy is to keep resources from employees who are not working well hence utilizing the maximum of the available resources.
Planning is a crucial factor and a principle to organizational management. To create clarity for your employees, I recommend the implementation and use of the compensation plan. An updated, written, and manual compensation plans are accessed by employees to understand it and be aware of it. Everything stated in detail, such as the number of vacation and sick days eligible for each person, the available dates of employment, and holidays paid by the employer. Also, state other benefits, for instance, retirement and healthcare pans and their rules and regulations. The new plan reviewed by all employees enables them to focus on their tasks because they are motivated by how the company has outlined their compensation and benefits (Mello 2019).
Most developed organizations take a chance of strategically positioning their compensation and benefit plans. They prosper and create a competitive advantage by retaining their productive and talented employees. Therefore, setting a budget and compensation plans motivates employees to work hard, which results in the success of the organization.
Reference
Mello, J. A. (2019). Strategic human resource management (5th ed.). Retrieved from https://www.vitalsource.com