From the course: Human Resources: Compensation and Benefits
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Organization-specific
From the course: Human Resources: Compensation and Benefits
Organization-specific
- Successful businesses have figured out how to create rewarding pay structures for their employees while still meeting the company's financial goals, but that's not something that's just pulled out of thin air. There are a number of factors that influence pay structure, and some of them are specific to the organization itself. The first is the company's competitive strategy. For example, if low prices are the primary goal, then employee incentives for reducing costs are essential. If top-notch customer service is the objective, then pay structures should emphasize customer satisfaction as a key basis for rewards. It's important to ensure that every employee gets rewarded for doing the kinds of things that will make their employer successful in the marketplace. Human capital or a person's level of education, training, knowledge, abilities, and skills required to perform the work is a major influence on pay structures. The greater the value added by higher levels of skills and…
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