Compensation Programs - Key Goals, Impact, Pay Mix, Job Evaluation, HR Manager Salary, Pay for Performance

Running head: COMPENSATION PROGRAMS
Compensation Programs
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1COMPENSATION PROGRAMS
The modern day organizations are observed to face the issues of employee
demotivation in a significant manner due to the considerable amount of work pressure that
the employees are facing. Under such condition the proper rewarding policy has great
significance for the organizations. The paper is focused in specifying the different attributes
of the compensation programs.
1.1 Key Goals of the Compensation Strategy:
The modern organizations are observed to create the compensation strategy with
precise focus on 5 different points which are mentioned below:
Talent Acquisitions:
The organizations are observed to structure their compensation strategy in such a
manner that they be able to attract the top quality individuals or talents for their organization.
This helps the organizations to process their business operation through the best quality
employees.
Retention and Rewarding Personnel:
The second motive for the compensation strategy is the retention of the employees for
the service for a longer period of time. One of the primary function of the compensation
strategy is the rewarding for the recognition of the good work that an employee conducts.
This motivates the employees to increase their quality and the tenure with the organization
(Adeoye & Fields, 2014).
Maximization of the Return on Investment:
The organization’s prime objective for an effective compensation strategy is the
higher rates of return on Investment. The organizations are in need to make sure that they be
able to come up with such a compensation strategy which will trigger the employees to

2COMPENSATION PROGRAMS
increase their workload and at the same time it will enable them to provide the utmost quality
in their operations.
1.2 Impact of Compensation System:
Several organizational surveys are able to confirm that the modern organizations are
subjected to significant amount of work pressure and it is also observed that the employees
under such situations are getting dissatisfied and frustrated with their jobs. The introduction
of the effective rewarding policy into the compensation system is significant in this case as
the employees are able to get motivated (Terera & Ngirande, 2014). The rewarding policy
includes both sets of rewards that is the intrinsic and extrinsic so that the employee’s
concerns of the various non-financial aspects is taken care along with the financial aspects.
On the other hand, a not so effective rewarding policy which is not able to offer much
financially and non-financially to the employees along with the improper and inadequate
recognition of the employees will be instrumental in demotivating the employees.
Maslow’s Hierarchy of Needs and Intrinsic and Extrinsic Rewards:
Levels Intrinsic Extrinsic
Physiological Needs Office Quarters Accommodation Rents
Safety Needs Quarterly Health Check ups Performance Bonus
(Einstein, Addams &
Roosevelt, 2016)
Social Belonging Outdoor Tours Tour Vouchers
Esteem Renowned Club
Memberships
Luxurious Cars
Self-Actualization Promotion to higher levels Increment in Salary