Compensation Strategy of the Organization

HRM 533 Assignment 5
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HRM 533 Assignment 5
Question 1: Determine how innovations in employee benefits can improve the overall competitive compensations strategy of the organization.
The world has rapidly transitioned over the years and the field of human resource management is not an exceptional. Employers have sought for more innovative and creative rewards for their employees to increase their motivation as well as acknowledge their needs for being creative and accomplishing their individual goals. Therefore, innovations in employee benefits have consequently improved the overall competitive compensation strategies in organizations (Westman, 2010). Some of the innovative employee benefits include the provision to use internet at an employee’s workplace for personal reasons such as socializing with friends, shopping online, and sports betting pools among others. The modern employee’s needs are unique and diverse compared to the traditional ones and employers should be able to appreciate this in order to effectively nurture their unique qualities and abilities at the work place effectively. The work place should provide an environment that encourages professionalism and growth of the employees holistically as well as ensure the organizations compensation strategy is competitive. Innovative benefits serve to enhance employee’s commitment improving their overall performance and productivity. (Shanks, 2010).
Additionally, an excellent compensation strategy differentiates an organization from others in the job market consequently bringing the differentiation within the organization making top talent employees and other excelling employs identify with the success through innovative employee benefits (Society for Human Resource Management, 2009). The effectiveness of an organizations compensation strategy makes employees share with others promoting the compensation competitive strategy of an organization especially among rivals or competitors. This is an indicator that an organization values its human resource as the most important asset. Innovative employee benefits also increases employees focus on delivering results to their organization because there is sustainable motivational approaches that are innovative and beyond the traditional fringe benefits. Effective competitive compensation strategy develops a competitive advantage improving the overall performance management best practices in a particular organization.
Some of the competitive compensation strategies an organization can adopt include rewarding employees for competencies through annual bonuses, merit based benefits, stock options and innovate benefits such as a paid holiday for recognition of outstanding performance. This is an effective reward system that ensures employees remain committed towards achievement of the organizations goals after the organization clearly communicates to its employees the key competencies expected and helping them towards achieving them. Through this important knowledge, skills, and behaviors are also promoted contributing greatly to outstanding performances. Effective reward programs should be designed to successfully deliver both extrinsic and intrinsic moti...