Human Resource Management : Competitive Pay in Canada

Running Head: COMPETITIVE PAY IN CANADA
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Human Resource
Management
Competitive Pay in Canada
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COMPETITIVE PAY IN CANADA 1
Human resource management is the procedure of recruiting, selecting, providing
training and compensating the employees of the organization. It is estimated that there are
various issues which is faced by the organization (Zou, Zeng, Lin, & Xie, 2015). Therefore,
the purpose of present essay is to understand the contemporary issues in Compensation from
the viewpoint of stakeholders. In this essay “competitive pay in Canada” is selected. This
topic is selected because the estimation describes that in Canada 50% of the companies adopt
the strategy of competitive pay for retaining and recruiting the skilled and competent
employees in the organization. The essay discusses the interest of key stakeholders and
summarizes them together to identify conflicting values. The relevancy of the values,
stakeholders and evidence are also analysed. Further, the competitive pay in Canada is
discussed.
Competitive pay is considered the approach or the main component of the
organization to attract competent employees. It is because the organization offers salaries
which are quite higher and more than that of industry standards and from other same
organization which are in the same area or region. There are various companies in Canada
such as Costco Canada which provides competitive pay to the employees because of hiring
the well-qualified and professional employees in the particular area (Flammer, 2015).
Therefore, retaining the existing employees is also the main objective of competitive pay.
Competitive pay provides various benefits to the organization in Canada that is
through competitive pay company hires well-qualified employees which raise the
productivity of the organization. In the year 2018, the profits of Costco Canada were $20,689,
which is higher than previous year because of providing efficient services to the consumers
(Lippel & Walters, 2019). In Canada competitive pay also helps in increasing the motivation
of the employees. However, the sometimes also faced from several disadvantages such as it
become costly for the companies that is Royal Bank of Canada also provides competitive pay
through which the expenditure of the company increases. The other disadvantage is that
companies while competing for the pay sometimes do not follow the proper culture in the
organization. Further the key stakeholders of Canadian organization are discussed by taking
the example of Costco Canada.
The key stakeholders of Costco Canadian include employees which are the internal
stakeholder and play a major role in overall functioning of the organization. It is because it
implements the policies and strategies to get efficient results (Chan, Nair, & Rhomberg,

COMPETITIVE PAY IN CANADA 2
2019). The other stakeholders are corporation itself it is due to the reason that it is influenced
by change in policies and strategies. The governments and competitors are also the key
stakeholders of Canadian organization that is Costco Canada leads government as the
stakeholders which gets more taxes because of more profits of the organization. The last is
the competitors which are also impacted through strategies and framework of other
corporation (KCarino , 2015). Therefore, this government and competitor are the external
stakeholders gets benefited and influenced in indirect manner. It is also describes that in
Costco Canada these stakeholders play major role in affecting the profitability of the
organization in long run. Further the interest and reasons of that interest for major
stakeholders are discussed by using Costco Canada example.
The competitive pay increases the motivation and satisfaction of the employees in the
organization, therefore it creates positive outlook towards the job they perform in the
organization (Abadi, 2019). The reason for this is because competitive pay increase the
efficiency of the employee to work in more productive manner that is in the year 2019 the
sales of Costco Canada increased and revenue of the organization goes up to $21.37 billion
(Zou, Zeng, Lin, & Xie, 2015). The other reason for more motivation is that because through
this employees feel more secure in the job.
The other stakeholder is corporation that is the interest of Costco Canada is to
increase the productivity and quality of services to satisfy the customers of the organization.
The interest of company is to recruit less and specialized employees in the organization
(Chan, Nair, & Rhomberg, 2019). The reason of this interest is to expend less cost as well as
time in providing training to the new workers and utilize those resources in increasing the
efficiency of the services and product so that loyalty among the consumers will be increased.
The competitors are also the external stakeholders of Canadian organization it is
because the competitors gets impacted in both positive and negative manner due to changes
in the strategies, policies of the organization. The interest of the competitors in Canada is also
focuses on identifying the culture, policies and structure followed by the organization in
similar industry and maintains their structure according to the requirements (Half, 2019). For
example it is estimated that the reason of following these interest by competitors is because
of maintaining the organizational standards in that manner so that it can it can gain the
competitive advantage in Canada.