What are the three goals of compensation professionals?
What will be an ideal response?
Answer: Compensation professionals promote effective compensation systems by meeting three important goals: internal consistency, market competitiveness, and recognition of individual contributions. Internally consistent compensation systems clearly define the relative value of each job among all jobs within a company. This ordered set of jobs represents the job structure or hierarchy. Companies rely on a simple, yet fundamental, principle for building internally consistent compensation systems: Employees in jobs that require greater qualifications, more responsibilities, and more complex job duties should be paid more than employees whose jobs require lesser qualifications, fewer responsibilities, and less-complex job duties. Internally consistent job structures formally recognize differences in job characteristics, which therefore enable compensation managers to set pay accordingly. Market-competitive pay systems play a significant role in attracting and retaining the most qualified employees. Compensation professionals build market-competitive compensation systems based on the results of market surveys and compensation surveys. Recognizing Individual Contributions are captured in pay structures, which represent pay rate differences for jobs of unequal worth and the framework for recognizing differences in employee contributions. No two employees possess identical credentials or perform the same job equally well. Companies recognize these differences by paying individuals according to their credentials, knowledge, or job performance. When completed, pay structures should define the boundaries for recognizing employee contributions. Well-designed structures should promote the retention of valued employees.
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When the Twin Six Cafe provides gourmet menu options to its customers as well as impeccable service that includes allowing customers to hand-select their own cuts of meat, ________
A) only an actual product is evident B) only an augmented product is evident. C) only a core benefit is evident. D) both a core benefit and an actual product are evident. E) a core benefit, an actual product, and an augmented product are evident.
Which of the following pricing approaches is most likely to accommodate prices lower than the
unit cost for short periods of time? A) penetration pricing approach B) target-return pricing approach C) markup pricing approach D) creaming pricing approach