The total pay package has a direct impact on the successful recruitment, selection and the retention of staff within any organization. This pay package is critical for any business to remain competitive in today’s business world. Competitive compensation packages are vital to both large and small organizations as they encourage the retention of talented staff. Components of a compensation package A compensation package includes salary but also includes other non-salary benefits such as: health-care benefits, 401(k) plans, PTO (paid time off) and other perks. Businesses often utilize experienced Human Resources professionals to review, update and create salary scales and compensation packages for new hires.
An organization is expected to implement changes since the organization must prioritize and understand the overall benefits as a result of the change. Organizational change is stressful for employees and the organization (Spector, B. 2010). Management and the staff should collaborate to ensure the changes within the organization operate smoothly. In regards to resistance, it is impossible for an organization to satisfy all of its employees however, the company can take the necessary steps to accommodate the employees such as offering a bonus or extra vacation time.
This is similar to the company’s financial and physical information etc. This can be expr... ... middle of paper ... ...e taken advantage of. Moreover, the managers must try to be friends with the employees. This would then earn their respect and eventually have the workers do what they’re supposed to do. As can be seen, being a manager is very hard work because it requires many aspects of management fundamentals.
The terms compensation refers to all forms of financial returns and tangible benefits that workers enjoys in replace for their work contribution. In order to keep a company at the forefront, a significant compensation system is a critical issue that need to be address intelligently by a compensation HR manager. It is essential to find ways to ensure that pay rates are fair and equitable to retain and recruit employee. Therefore, the compensation manager has to understand the current and upcoming competitive markets for employee pay and benefits. Due to complexity of business world nowadays, the trade off here is how to create a low cost system while envision effectiveness in terms of attraction and retention.
Work Design and Workforce Planning Work Design and Workforce Planning are two critically important components to manage the employees of any organization. The manager should have to allocate the jobs which will ensures that employees perform tasks with responsibilities that have the most potential to add a special value to the company. Managers must also engage in workforce planning to make sure that the right people are with right job and in the right place in the company. This factor will help to achieve the goal of any organization. a) Manage Job Design Job design involves deciding what employees will do on a day-to-day basis also as how jobs are interconnected.
Productive workers concoct new plans and strategies to empower the organisation get by in this tumultuous economic sate . According to Robinson (2004), productivity is an execution measure that incorporates both effectiveness and viability. Effective and high performing "organisations have a society that supports employee inclusion thus employees are additionally ready to get included in objective setting, choice-production or critical thinking exercises that brings about higher worker execution" (Rob... ... middle of paper ... ...hat, but because they have passion and commitment towards the task. All this can only be achieved if companies can take the initiative and involve employees in decision-making, goal formulation and policy formulation of the company. Employee commitment is vital for mangers and they should free to manage without interference.
Companies will have to make sure that their people are committed and productive, so that they do not leave after a short period of time as well as incurring substantial turnover costs and wasting all the time spent investing in training newly hired employees. More companies and organizations are realigning the role of HR, so that they can better manage the organization as well as oversee
For employees, variable performance-based compensation is going to reward those employees who can meet and/or exceed the goals and performance standards set out for their positions. It is a tangible motivator to behave in ways that will help an organization be successful. It places autonomy in the hands of employees—they have the ability to control the compensation they receive based on their own actions. When employees reach and/or exceed the performance metrics of their position, this is ultimately going to contribute to the success of an organization (Milkovich, et al., p. 331). If an organization aligns the performance metrics of individual positions with their business strategy, they will be actively motivating employees to do what the business needs to be profitable.
Employee engagement is one of the most important and most vital factors to a business and its managers. The book, Human Resource Management, mentions that employers must focus and maintain focus on employee engagement to not only minimize employee turnover, but make the most out of every employee that the employer takes the time to train and hire on for the company. An employee that is highly engaged in what they are doing, and is motivated to continue the work they were hired on to do, in an employee that not only will enjoy their career, but also one that will make the business more efficient by doing so. An article in the Journal of Applied Psychology studied the link between job burnout and employee engagement. This study basically found that employees were
If employees are developed to be invested in the company, it will succeed. If not, it will tie you down – and you may not even realize it. When businesses but the needs of clients and customers in front of their employees, everything suffers. It starts with picking and developing the right people and then progresses to promoting the right people. Each of these actions are huge and determine your companies immediate future.