Strategic Compensation and Bases for Pay
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Strategic Compensation and Bases for Pay
Juanita C. Murphy
Professor James G. Ziegler, Ph.D.
Compensation Management-BUS 409
January 29, 2011
Describe the three main goals of compensation departments. The three main goals of compensation departments are internal consistency, market competitiveness, and recognition of individual contributions. Internal consistency means the importance of the job value per job description. An example would be having two people with different qualifications and skills, internal consistency compensation systems make it so that they require different financial benefits. Internal consistency is broken up into two different extensions. Those extensions are job analysis and job evaluation. Job analyzing is putting the best important together about the job in description form. That information is usually what the job entails, what the requirements expected are, and the working conditions. The last branch is the job evaluation. Job evaluation helps managers to compensation each employee appropriately based on work performance, for their individual pay scale. Market competitive causes companies to gain the interest of the best of the best employees and ways of keeping them satisfied. One way to keep an employee happy is to pay them what they are worth. When a company is able to retain employees that are beneficial to the company then the company is looking at longevity from that employee. It will keep unnecessary money from being spent by the company such as posting ads for job openings and training. Two ways to make a market competitive pay system work is strategic analysis and compensation surveys. Strategic analysis helps a company how where they stand in regards to their competitors. In order for a company to know where they stand they need to do compensation surveys. It helps to know what your competitors are pay their employees and the benefits they receive, so the company can stay in competition with them in not trying to...
Juanita C. Murphy
Professor James G. Ziegler, Ph.D.
Compensation Management-BUS 409
January 29, 2011
Describe the three main goals of compensation departments. The three main goals of compensation departments are internal consistency, market competitiveness, and recognition of individual contributions. Internal consistency means the importance of the job value per job description. An example would be having two people with different qualifications and skills, internal consistency compensation systems make it so that they require different financial benefits. Internal consistency is broken up into two different extensions. Those extensions are job analysis and job evaluation. Job analyzing is putting the best important together about the job in description form. That information is usually what the job entails, what the requirements expected are, and the working conditions. The last branch is the job evaluation. Job evaluation helps managers to compensation each employee appropriately based on work performance, for their individual pay scale. Market competitive causes companies to gain the interest of the best of the best employees and ways of keeping them satisfied. One way to keep an employee happy is to pay them what they are worth. When a company is able to retain employees that are beneficial to the company then the company is looking at longevity from that employee. It will keep unnecessary money from being spent by the company such as posting ads for job openings and training. Two ways to make a market competitive pay system work is strategic analysis and compensation surveys. Strategic analysis helps a company how where they stand in regards to their competitors. In order for a company to know where they stand they need to do compensation surveys. It helps to know what your competitors are pay their employees and the benefits they receive, so the company can stay in competition with them in not trying to...