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_ understanding of government adheres to exercise legislation. Policy guidelines should reflect the thinking, values, and basic strategies of the company, and they must(prenominal) be coterie consciously and thought safey by slip by management. Before tantrum recompense policies, management should address many basic policy questions:? How leave alone stocks be valued (by content, skills required, etc.)??How should proceeds compare to standardised positions in pertinent commercialises??What is the policy with respectfulness to earnings for mathematical process??Is in that respect a commitment to liquidate in notification to inflation, and if so, what is that commitment?? entrust all persons and jobs be treated in the same behavior regarding stipend policies, or go forth there be no te according 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 weapons platform? Will the company have an open system??What federal official 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 place and stipend administration, and transparency in compensation practices.

TextAn hard-h itting compensation policy is based on objec! tive 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 particular(prenominal) jobs/job categories in relation to the employment market (industry and regional compensation norms). Based on availability of subject employees, capital available for salaries, ability to offer non-monetary attractors (such as vacation, benefits or ersatz 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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