Executive Summary
With our organization reaching over 100 employees in many different salary levels we must evaluate the best possible compensation strategy for our organization. In this report, the various compensation strategies and recommendations for implementation will be displayed. The compensation strategy of an organization is one of the most important programs that is a necessity to retain and attract quality workers. There are many different ways to compensate workers but the focus of research has been on that of performance based, incentive based and total compensation strategies. These each have a different benefits for different organizations.
The performance based compensation is one that rewards workers for completing projects by certain deadlines or with certain standards. This strategy is beneficial for an organization that has strict deadlines and wants to attract workers who think what they accomplish should speak for itself. This compensation rewards workers who achieve a certain task in a given amount of time and is rewarded by benefits or promotions. This strategy is beneficial for retaining skilled workers who are competitive and high performing.
The incentive based compensation strategy is one that rewards workers who attain professional achievements. These achievements could be joining a professional organization or gaining a professional certification. This strategy is beneficial to the organization as it helps to demonstrate the credentials and professionalism of the company displayed by the achievements of employees. This strategy can be beneficial for companies that value a high esteem and overall image. The total compensation based compensation strategy is one that combines monetary compensation with benefits to become more appealing to prospective and current employees.
This strategy looks to limit the total cost