What makes you work as an employee to an employer?
Is it “More money is always better when that is coming in, not going out”? OR Is it something else....
For some it could be the societal recognition brought by the employer to the employee that makes it exciting, on the other hand, some are interested by the human interactions with like minded people as friendships at work.
To understand it in a concise way, it is somewhere the “Socio economic factors” and for few it is self awareness, conscientious factors that helps to sustain the employee and employer relation, there are many theories in this regard.
To a degree, when Apple as a company sells premium products at quite an attractive price points by using suppliers of low labor costs is of course a strategy.
To be competitive when some companies state that it needed to reduce the labor costs by some billion dollars per year to manage the bankruptcies is also not less than a strategic plan on compensation. To a degree such decisions worked well in managing the situation or not but to an extent it defines a strategic move eyeing success in the business!
Ahhh yes!!! for some it is the money i.e. “Paycheck” drawn every month that encourages them to be an employee.
As the Compensation strategies interact with the Business and the Human Resources. In that context, the Compensation Policies and Techniques, are preferably used by the organizations for resolving multiple objectives.
Since we know that the ‘Devil is always in the detail!
In an order to ease out the comprehension before this devil can haunt us, I have segregated this in 10 sub headers which I will be covering in my next series of blogs :
What is Pay?
What is Salary and Wage?
What is Compensation?
What are the Compensation guiding principles?
What are the Compensation Policies and Techniques?
How to develop Compensation Strategies for a Company?
How to map Compensation Strategies through an illustration?
How the strategic choices on compensation aligns to the Business and Human Resources in a supportive way
Examples of Compensation Strategies.
Best Practices fitting the needs of the strategic decisions
