Compensation Management and Agents Performance
Compensation Management and Agents
Performance of BD19 Legacy Inc. (Agency
Office of PT Prudential Life Assurance)
By
Grandy William Kinsey
19012049
Undergraduate Program
School of Business and Management
Institut Teknologi Bandung
CHAPTER 1
INTRODUCTION
1.1. Importance of Compensation System for Company
The recent competitive situations in the business world make it difficult to obtain and hold the top workers. Once the organization is able to recognize, it can be unable to propose the right pay and to deal with the pay increases to retain the best employees. For that reason, the compensation strategy is the extremely important section of the overall Human Resource Strategy to keep the company competitiveness and successfulness. On the other hand, the compensation strategy is important to keep the personnel budget under the control and to manage the jobs in the right salary.
The compensation strategy distinguishes the organization on the job market and builds the attractiveness of the company for the top talents. They love to be hired by the desirable organization; they do not like to be hired by the average company offering the same conditions as any other average organization in the industry.
Compensation often includes an employee‟s base salary and additional benefits, such as health insurance, retirement plans and performance bonuses.
Competitive Advantage and Compensation Strategy
Today, the products are similar. It is hard to differentiate the cars from the other car makers. The employees are in the same condition as the consumers. They have the problem to distinguish the employers and they are not able to identify the excellent corporation, when it is not special from the rest. The competitive advantage is the essential part of the mix for the success. The company has to present itself differently, not just by the presentation, but it should distinguish itself by the unique approach toward its employees. The compensation strategy is one of the most
Performance of BD19 Legacy Inc. (Agency
Office of PT Prudential Life Assurance)
By
Grandy William Kinsey
19012049
Undergraduate Program
School of Business and Management
Institut Teknologi Bandung
CHAPTER 1
INTRODUCTION
1.1. Importance of Compensation System for Company
The recent competitive situations in the business world make it difficult to obtain and hold the top workers. Once the organization is able to recognize, it can be unable to propose the right pay and to deal with the pay increases to retain the best employees. For that reason, the compensation strategy is the extremely important section of the overall Human Resource Strategy to keep the company competitiveness and successfulness. On the other hand, the compensation strategy is important to keep the personnel budget under the control and to manage the jobs in the right salary.
The compensation strategy distinguishes the organization on the job market and builds the attractiveness of the company for the top talents. They love to be hired by the desirable organization; they do not like to be hired by the average company offering the same conditions as any other average organization in the industry.
Compensation often includes an employee‟s base salary and additional benefits, such as health insurance, retirement plans and performance bonuses.
Competitive Advantage and Compensation Strategy
Today, the products are similar. It is hard to differentiate the cars from the other car makers. The employees are in the same condition as the consumers. They have the problem to distinguish the employers and they are not able to identify the excellent corporation, when it is not special from the rest. The competitive advantage is the essential part of the mix for the success. The company has to present itself differently, not just by the presentation, but it should distinguish itself by the unique approach toward its employees. The compensation strategy is one of the most
References: Baron, A., & Amstrong, M. (2007). Human Capital Management: Achieving Added Value Through People Bellows, J. D. (2001). Use of Workers’ Compensation Medical Care: Health Insurance Matters. Fox, L. P. (2003). Compensation Strategy in Transnational Corporations. Management Decision , 41 (5), 465 - 476. Habir, A. D., & Larasati, A. B. (1999). Human Resource Management as Competitive Advantage in The New Millennium Johnson, R. (n.d.). Small Business. Retrieved October 28, 2014, http://smallbusiness.chron.com/importance-compensation-workplace-38470.html Why is Compensation Strategy Important. (2012). Retrieved October 28, 2014, from HR Management Guide: http://www.simplehrguide.com/why-is-compensation-strategy-important.html