External
Competitiveness & Internal Equity in an Effective Compensation Program
That
much of an organization’s budget goes into employee compensation means that
compensation program is a crucial part in an organization’s human resource
management plan. There are several types of compensation plans including
traditional, broadband and market-based compensation programs (Biro, 2016). The
recent past has seen many companies shifting to...
Balancing
external competitiveness and internal equity
For
some companies, it is not possible to balance between external competitiveness
and internal equity. For example, for an industry’s big market leader, the
internal equity is often the industry’s external competitiveness or the jobs
are so diverse compared to the rest of the industry that any comparison would
be meaningless. For
most other organizations, especially companies in perfect competition...
One
way to do this is by identifying the jobs that you need to benchmark against...
There
are some companies that put more emphasis on internal equity rather than
external equity in their job compensation. Some of these companies include
Goldman Sachs, General Electric and PepsiCo...
Other
companies put more emphasis on market competitiveness rather than internal
equity. Some of these companies include SAS, Boston Consulting Group and
Wegmans Food Markets. Hence, they...
Maintaining
a balanced compensation program ensures that an organization’s inputs match the
output to the benefit of both the workers and the organization. This
dovetailing of the interests of workers and the organization ensures staff
motivation and job satisfaction ensuring that a company attracts and retains
good talent for its continued growth and development.
To order quality, original work for this and or similar paper please skip this way.References
Biro,
M M. (2016). 5 Ways to Attack the Pay
Inequity Issue Head-On. www.salary.com.
Accessed on 2 July 2016.
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