Compensation Role In Compensation

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VII. (A) REWARDS’ ROLE IN RETAINING STAFF The clear cut, unambiguous answer for retaining staff is to provide them with a better deal, better than what they perceive they could obtain by working under alternative employers. Today’s need of the hour is to provide jobs which satisfy the employee and provide him with career development opportunities. The following figure shows the response of employees of a company (according to a survey done) to different rewards they were presented with over past few years: FIGURE 7(A).1 GENERAL RESPONSE OF EMPLOYEES FOR DIFFERENT REWARDS VIII. PAY PLANS In the broadest sense possible, the pay or compensation systems and plans of any company are designed to attract, retain and motivate its workforce. It is an obvious occurrence that the workforce will gravitate towards higher paying jobs in the competitive market of today. The policies and practices related to pay are of critical standing as every employee, from a peon to the General Manager of a hotel is affected by them. The pay level will always be accepted if they are seen as fair in the eyes of the employees. Unfair pay systems will breed wariness and lack of commitment to their job. Today there are many changes in the philosophies regarding the pay plans in any organization since the workforce is continuously moving away from the policy of ‘salary entitlement’ where seniority is the basis of pay increases and not the performance. In today’s dynamic work culture, Pay-for-Performance is the new mantra where three major changes concerning pay and benefits can be seen. The following are the basic aspects of any pay package: • BASIC RATE is the minimal pay received by an employee without any additions to it. • FUDGE PAYMENTS refers to... ... middle of paper ... ...per study it is quite possible and will achieve high rates of success and retention of much required talent. This is not a one-time approach, but is an on-going process that will have to be regularly checked and modified to adapt to industry demands. This will result in the HR Managers becoming highly qualified and fully equipped with the ability to keep up with the changing environment of today. Just as all organizations compete for products, today’s scenario requires them to compete for talent as well. For this, the HR personnel need not only to accept and respond to change, but also anticipate and master it. Employees will only produce when they are properly placed, trained and incentivized for their performance. Mastering the varied techniques which can enhance all aspects of the employees is most definitely the heritage as well as the future of HR Managers.

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