C1. The SAP SuccessFactor Compensation
Pay for performance structure is critical to business overall performance. It is one of the effective ways that a firm can motivate its employees to improve their effort and remain loyal to the firm. As noted earlier, the pay for performance influences the labor supply and demand curve to create a competitive labor market. Two exemplary companies in Singapore that have managed to attract employees and retain high performance are SAP and ChapmanCG. The SAP, an IT and software firm, for instance, implements the SAP Success Factor compensation, a program meant to align compensation with the firm’s goals in order to retail qualified and talented employees (SAP 2016). This compensations program is beneficial to the company because it helps manage the budget accurately, align incentive with business objectives, and motivate employs to perform their best (SAP 2016). In view of the Efficiency Wage Theory, the SAP has managed to improve its output and remain competitive in the IT industry because of its high pay structure. Perhaps the greatest benefit about implementing a pay for performance structure is that it enables companies indoctrinate a culture of high performance and hard work among employees. If employees see the value of their hard work it requires less effort to motivate them. Establishing such a culture requires integrating pay for rewards programs and formulating policies that govern their implementation to avoid any setbacks.
C2. The ChapmanCG Compensation and Benefit Program
Beside providing HR consulting services, The ChapmanCG, implements a compensation and benefit program, which manages a competitive pay structure and provides ‘equity and consistency’ in the manner in ...
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...w rate of turnover, increased loyalty and commitment to the firm, motivated employee, high performance, and less work-related disputes that could lead to litigations. Firms should understand that incentives should never always be in the form of monetary compensation. As highlighted before, compensation can be in the form of structured or casual incentives. The firm can integrate both forms of incentives in order to maximize on their initiatives. In addition, firms should integrate performance evaluation system that will help them provide the right incentive. When providing remedies, formulating regulation and laws, or when bargaining agreements for involved parties, the FWC should consider the significance of pay for incentives and apply this accordingly. Also, the FWC can offer advise to involved parties when it comes to setting work place remunerations.
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