Macroeconomic Compensation
Develop a compensation program that recognizes the lifestyle and standard of living of all employees. To survive in a complex, competitive global economy, all organizations, private and public must be able to focus on the effective and efficient delivery of the products they are designed to offer. A key factor in promoting effective delivery of essential goods and services is the provision of a performance based remuneration system for all workers. It provides a step by step approach for designing a remuneration system that recognizes job requirements; employee related knowledge and skills and performance related incentives that link individual, team, work unit, and organization performance. Total remuneration also includes a host of benefits that protect and expand the lifestyle and health of workers and their families.
More than ever before, the compensation professional must be able to support all activities that will make the organization more successful. From the beginning of these organizational redesign efforts, compensation professionals have been called upon to identify:
- Jobs in which worker efforts can be combined
- Unneeded jobs and
- Possibly jobs in which incompetent, obsolete or unneeded employees are being hidden.
In addition, these same compensation professionals are being asked to redesign compensations and reward programs to improve employee morale and motivation while keeping labor costs within specified limits. To assist their organizations in competing while functioning within these often conflicting requirements, compensation professionals have had to increase their knowledge and skills dramatically. Because of these advances in knowledge and skills, the importance of this profession has risen in the managerial professional world
Compensation and Organizational Strategy
To develop a competitive advantage in a global economy, the compensation program of the organization must support totally the strategic plans and actions of the organization. The individuals occupying the executive positions of the organization are responsible for establishing and developing the strategy of the organization. The overall strategic plans inform all of its members of the direction the organization wishes to take. Management and organizational specialists review these strategic plans and take the actions necessary within their domain to ensure accomplishment of the plans.
For the human resources compensation specialist, the assignment to ensure accomplishment of organizational strategy begins with determining,
