Compensation Strategy

Running head: COMPENSATION STRATEGY
Compensation Strategy
Name of the Student
Name of the University
Author note

1COMPENSATION STRATEGY
Question 1: What policy regarding external competitiveness would you advise? List the
options and the pros and cons of each policy option. Offer the rationale for your
recommendation.
While making policies, an organization must consider regional and global competition and co
me up with strategies that not only help the organization to keep strong competitive
advantages, but also ensuring a stable as well as increasing workforce efficiency
(Eisenberger, Malone & Presson, 2016). These are the possible paying strategies for
marketing manager with competitive advantages and disadvantages:
Policies Advantage Disadvantage
Similar pay with competitors It helps to reduce the total
amount of effective expenses
of the payroll
There will be no additional
advantage to attract larger
labor market.
Paying more than the
competitors or overpay
It reduces the turnover and
absenteeism while increasing
the employee engagement
and performance level
Additional monetary
compensation can increase
the human resource related
expanses
Paying less than the
competitors or pay lag
Poor monetary benefit can
decrease the human resource
related expanses
In increases the turnover and
absenteeism while decreasing
the employee engagement
and performance level