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Compensation & Benefit Strategies

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Compensation & Benefit Strategies

Compensation and Benefit Strategies
In today’s world, assigning a right compensation for a right job position and matching it with individual’s expectation has become a challenging task. For large scale organizations, defining compensations and benefits is even harder and border challenge. In this case organizations need to consider various demographic factors prior to defining favorable compensation strategy. Any compensation strategy applicable in given organization cannot be matched with similar job functions in other organizations or in other regions for same organization. A constant review of compensation and benefits strategy is needed with various benchmarks to attract right talent. Organizational long term strategies, span of organization, hierarchical structure, policies and future internal expansion in organization determines overall pay scales and promotions. For a large organization as referred in video ("Atwood and Allen," 2014) which is already having multinational presence and looking forward to expand further in various demographic regions, needs to consider various factors to fulfill organizational strategies. Attracting right talent, retaining existing talent and improving upon existing talent of employees are some major challenges faced by all such types of organizations. For such organization with its multinational existence I will choose a multinational based compensation plan which will account for regional cost of living adjusted with inflation.
Employees are compensated with salary and benefits for the value they deliver for organization. As per marginal revenue theory, stated in (Casio, 2013), organization will higher worker only when they get convinced that employee can produce a value equivalent to wages. Organizations will try to reflect this value gained into salary and profit to ensure…...

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