Using Compensation as a Change Agent - Essay Example

Download file to see previous pages The various forces of change include the changes in the competitive scenario, the emergence of the substitute products, the competitive market pricing of the products, the evolving changes in technology and the human resources of the organization that implements those changes. In order to respond to these forces of change and attain sustainability of the business, compensation could be identified as the change agent that influences the activities of recruiting, production levels, employee morale and the satisfaction level of the workforce (Gomez-Mejia, Berrone and Franco-Santos, 2010). Use of ccompensation as a change agent The compensation is the payment done by the business houses to their employees in exchange of the services provided by them in running the operation of the company. Compensation is an important aspect in the field of human resource management. Recruitment, productivity, moral, and employee and employer satisfaction are important terms in human resource management process. The human resource managers or the professionals use compensation as change agent in order to help the organization. The level of compensation is fixed by the organization depending on various factors such as the revenue earned, cost incurred by the company, total number of workers and the efficiency of the employee. The compensation offered to the employees could be one of the most important factors that determine the level of efficiency of work. The compensation offered to the employees takes into account the volume of output required from the employee and the versatility of the employee to manage different areas of operation. Thus compensation drives the required actions necessary for achieving the objectives and goals of the organization. The level of compensation creates a brand image for the company among the several stakeholders including the employees, customers, etc. As an agent to drive the required changes in the company and establish its position in the industry, compensation could be one of the most effective factors. How organizations can utilize compensation to help with and affects recruiting employees, retaining employees, boosting productivity, boosting morale, boosting satisfaction Rrecruiting employees Compensation as an agent of change significantly impacts the recruiting activity of the organization. The compensation is mentioned upright on the job advertisement which is taken into consideration by the candidates before applying for the job. Although the volume of applications does not decide the quality of the candidates, a higher level of compensation, however, allows the company to select a candidate with superior skills and competencies as per the requirement of the company. Thus, the barriers to recruiting the candidates could be removed by offering a higher level of compensation (Tropman, 2002). The process of recruiting is aimed at selecting the right candidate required for driving the activities for implementing the changes. The limitations of the competency level of the candidate to be selected could be removed with the help of offering a suitable compensation. The compensation level, therefore acts as the agent that could drive the forces of change. Retaining employees Employee retention is one of the important factors of all organization. Responsibility of higher employee retention rate goes to the mainly the human resource department. In the current competitive business environment, getting skilled employees has very much difficult similar to as getting potential customers. Therefore, the organizations have started focusing on employee retention along the customer retention. According to Maslow’ ...Download file to see next pagesRead More