Compensation Management Explain the need for designing of Compensation Policy. What is the importance of compensation system in business organization?

IntroductionOrganizations should establish and communicate clear principles by which employees are paid. At a minimum, organizations need to ensure that their remuneration form _or_ compact of government adheres to exercise legislation. Policy guidelines should reflect the thinking, values, and basic strategies of the company, and they moldiness be coterie consciously and thought sufficienty by snarf management. Before tantrum stipend policies, management should address approximately basic policy questions:? How ordain speculates be valued (by content, skills required, etc.)??How should loot compare to standardised positions in pertinent commercialises??What is the policy with regard as to net profit for mathematical process??Is in that respect a commitment to liquidate in notification to inflation, and if so, what is that commitment?? leave all persons and jobs be treated in the same focussing regarding stipend policies, or will there be speciality accordin g to title, tenure, or some opposite criteria??What will be the policy regarding employee contributions to company sponsored health and loneliness take ins??What will be the policy on communicating the compensation computer program? Will the company have an open system??What federal and state laws apply to delivery of compensation and benefit programs, and how will these be implemented?Additionally, best practice organizations aggrandize compensation principles that ensure fairness and equity in pay rate and fee administration, and transparency in compensation practices.

TextAn hard-hitting compensation polic y is based on objective and streetwise job ! descriptions, effective job evaluation and performance management, and relevant salary administration. Salary administration encompasses establishing: salary ranges; decision-making criteria for salary increases; and condemnation frames for salary review. ?Establishing Salary RangesOrganizations need to determine where they want to pay particularised jobs/job categories in relation to the employment market (industry and regional compensation norms). Based on availability of subject employees, property available for salaries, ability to offer non-monetary attractors (such as vacation, benefits or selection work arrangements) organizations make a choice to pay at the low end of... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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