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In this case, in order for an organization to appeal to such employees, and keep them after hiring them, it is essential for them to provide them with competitive compensation packages, including benefits (Ulrich, 2011).
Nonetheless, provision of benefits cost money. For instance, health insurance in the United States is quite expensive. As such, it is true that benefits may result to increased costs, making a firm to incur higher costs and hurt its competitiveness. In this case, it is appropriate for firms to calibrate in a careful manner based on the number of benefits it wishes to offer its employees. An enterprise should be generous enough for it to attract qualified and competitive labor force. However, it should refrain from overpaying employees who are less productive and not worth additional money (Ulrich, 2011).
In a firm, it is true that higher pay and benefits play a major role in attracting and keeping quality employees. Nonetheless, I do not belief that pay is the primary motivating factor for existing employees and job applicants. They look for those firms that are capable of providing them with benefits, such as health insurance, which are some of the most challenging areas for employees to
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Particular attention will be followed on the following aspects: Evaluation of the organisation’s current reward strategy. What motivates the dealing team? Assess the extent to which team-based pay is appropriate. Analyse and discuss the role of HR particularly the Compensation and Benefits Manager.
Employee Compensation and Benefits
The employees of a company are considered as the most important one of its factors of production. A company with efficient workers is more likely to be successful as the work of the employees has a direct impact over the performance of the entire organization.
This means that different employees will have different job structures, depending on the number of years that they have worked, the qualifications they possess, and the level of people to whom they report. A job structure is important in an organization since it helps in the development of the organization structure and in the development of a pay grade mechanism.
Nowadays humans are considered as one of the most important assets required to carry out the tasks effectively and efficiently. Among many techniques which companies utilize to attract the potential minds, keep and encourage its people is Compensation and Benefits Management (Zingheim and Schuster et al., 2009).
Currently Nike has over five hundred factory or office locations in around 45 countries all over the world, the majority of these are in Asia. With such extensive locations, Nike, an American corporation has a sizeable percentage of employees from diverse groups, Nike targeted to become one of the best Employer of Choice at the turn of the 21st century.
According to Martires (2004), “the employees’ recognition and self-realization aspirations that stand at the apex of the hierarchical need structure are best met by the organization that provides opportunities for growth and development”
Every organization strives to offer its employees tangible and intangible benefits so that they are satisfied and less likely to quit or contribute towards high employee turnover.
Strategic compensation is a
As such, it is significant to have a documented package and justification for the compensation package.
The above figure gives a rough estimated percentage of the expected components of the total compensation. On average, the
ons of behavior based on the individuals or employees’ perception of the prospect of realizing their desired outcome (Noe, Hollenbeck, Gerhart & Wright, 2014).
According to the expectancy theory, employee’s motivation is a product or outcome of three elements. First is how
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