Perceptions of Equity - Essay Example

Organizations in high-velocity environments such as in the international marketplace are willing to pay proportionally higher salaries to individuals who have such skills. It is expected, therefore, that emphasis on individually equitable compensations as a means of recruiting and retaining highly capable employees would be required (Beardwell, Holden and Claydon, 2004). ConclusionEmployee Compensation can be one of the greatest foundations of control available to a company in its quest to increase organizational performance and effectiveness, yet remain one of the most underutilized and potentially complex tools for driving organizational performance.

The importance and complexity of linking compensation strategies to business goals in a systematic manner have been a recurrent argument in the study in this field, as has the importance and difficulty of linking compensations to the longer-term view. In describing the strongest level of linkage the emphasis has been placed on the description of compensation processes that are capable of reinforcing the behaviors crucial to business strategy like long-term versus short-term, customer focus versus financial results.