Compensation Management: Managing Living Standards for Employees
PResidency UniversityCourse code – HRM 408Section- 2Course Instructor- Dr. Tarun Tapan DharSummer 2011 | Compensation Management: Managing Living Standards for Employees | | | Md. Abul Hasnat ID# 081091025 | 6/14/2011 |
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Introduction As part of the effort to develop and maintain a quality workforce, public sector organizations must position themselves as “employers of choice” and recognize the value of their human capital. The methods, by which employees are recruited, trained, retained, measured, and compensated are under scrutiny to ensure that goals can be accomplished and that future needs can be met. It is not enough to develop and implement programs to recruit, train, retain, measure and compensate – in the face of global competition, organizations must develop strategies to manage these important human resource functions. In today’s market a number of organizations are continuously seeking new strategies to meet both organizational and employee needs. From a global perspective there are still substantial differences in the way people get paid. However, organizations are finding that their human resource strategy can be structured using similar philosophies to reward people regardless of where there are located. The logic of market-based economies suggests that the differences are narrowing as employers worldwide cope with similar pressures. All are affected by intense competition for critical skills; or are influenced by global financial markets.
Public sector organizations need to develop aggressive pay policies to compete successfully for well-qualified employees. Compensation levels must be high enough to attract a strong applicant pool and retain the best among current employees. Morale is enhanced if employees know they are being paid at least as much as comparable employees are being paid by other employers. Classification and compensation systems should therefore not only classify positions
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Introduction As part of the effort to develop and maintain a quality workforce, public sector organizations must position themselves as “employers of choice” and recognize the value of their human capital. The methods, by which employees are recruited, trained, retained, measured, and compensated are under scrutiny to ensure that goals can be accomplished and that future needs can be met. It is not enough to develop and implement programs to recruit, train, retain, measure and compensate – in the face of global competition, organizations must develop strategies to manage these important human resource functions. In today’s market a number of organizations are continuously seeking new strategies to meet both organizational and employee needs. From a global perspective there are still substantial differences in the way people get paid. However, organizations are finding that their human resource strategy can be structured using similar philosophies to reward people regardless of where there are located. The logic of market-based economies suggests that the differences are narrowing as employers worldwide cope with similar pressures. All are affected by intense competition for critical skills; or are influenced by global financial markets.
Public sector organizations need to develop aggressive pay policies to compete successfully for well-qualified employees. Compensation levels must be high enough to attract a strong applicant pool and retain the best among current employees. Morale is enhanced if employees know they are being paid at least as much as comparable employees are being paid by other employers. Classification and compensation systems should therefore not only classify positions