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Developing a Compensation Strategy - Research Paper Example

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The author of the paper states that developing a comprehensive total compensation strategy is key to the overall performance of an organization and more importantly the efficiency of employees. Good compensation practice balances all the factors to ensure the short-term and long-term objectives are obtained. …
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Extract of sample "Developing a Compensation Strategy"

Download file to see previous pages As the paper outlines, with the focus on the total compensation strategy of Wilson Bros, the pay philosophy reveals the foundation on which the compensation strategy is placed. The existing pay system for the employees entails financial compensation in the form of wages and salaries, incentives and the indirect forms of compensation. The engineering architectural company utilizes the services of employees equipped with a wide range of skills. There are construction architects, the constructions experts as well as landscapers. It's a business strategy that shapes the competitive advantage is to keep around these services by integrating a total compensation strategy that outperforms that of its competitors. At Wilson Bros, creating a sustainable competitive advantage is intricately related to the art of innovation. This pillar business strategy demands the employment of personnel that is not only productive but also very creative. The architectural works of the organization are a result of the appealing compensation that has seen the best of the best individual working at the company. The role that the compensation strategy has played in this success is of the essence. On the salary schemes, the employees are paid in accordance with the services they bring the organization. Each skill is treated uniquely such that there is no standard salary. The goes a notch higher to review the salaries based on the performance of each employee. This practice fuels productivity and the best of the services from the staff which is the key focus of the business. The reward program suits employees that prefer financial compensation as opposed to the indirect forms of compensation. To cap on it, the work environment that the company provides is the best compensation that employees enjoy even without realization. In spite of the fact that this is a company that deals with a manual production and a hard laboring, the work environment is overly rewarding in its normal state (Kaplan, 2007). Wilson Bros because of its legendary works receives numerous construction and architectural contracts. The non-financial compensation that underlies this qualifies the company as the super keeper type. Employees are allowed to choose which contracts to work on and this offers the flexibility advantage. Since contracts have their stated salaries, employees develop their schedules leaving them time to spend on their families but still offer the company the best skills. The skill-based pay and the non-financial compensation of the company goes a long way in bridging the gap between the business strategy and the total compensation strategy. However, keen analysis and the bigger picture of a total compensation strategy would also account for a comparison with what the competitors offer alongside the impact of the compensation on the company’s business structure. Typically, companies show laxity in offering employee security in terms of the compensation strategies. Wilson Bros is no exception because the compensation plan has had a fair share of criticisms. The retirement compensation plan and group health benefits are the areas of concern to most laborers knowledgeable of their rights. While this is a scare to most employees with enviable potent, it is majorly attributed to the nature of the space within which the company operates. On the brighter side, the company invests generously on permanent employees.  ...Download file to see next pagesRead More
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