Rewards and Compensation Strategy - Issues and Challenges

RUNNNG HEAD: REWARDS AND COMPENSATION STRATEGY 0
Rewards and
Compensation
Strategy
STUDENT’S DETAILS-
2020

REWARDS AND COMPENSATION STRATEGY
1
Rewards and Compensation Strategy: Issues and
Challenges
The companies face challenges in the making of rewards and compensation strategy and
linking it with the business strategy. Here, the essay is based on the issues and challenges raised
in the paper “Rewards and Compensation Strategy: Issues and Challenges” which can be
relevant to the Saudi companies (Khan, 2000).
The companies find it difficult to keep the employees motivated through the aligning of
the rewards strategy with the business goals. This is core activity for the retaining of the
employees and making them satisfied with the restructuring and downsizing for the retaining of
the good employees. Moreover, Saudi companies face issues in linking of the performance
strategy with the reward strategy. The companies account for new ways for the retaining the core
employees which is often related to performance related pay and gain sharing plans which are
being used in the recent times. However, rewards and compensation strategy is an important HR
strategy in which the HR managers attract, retain and motivate their employees for the retaining
of the core employees. The companies link performance-based strategy with the business as the
quality of their performance will lead to the productivity of the company. The companies provide
rewards to the employees in various ways. The employees are rewards are related with the
operational excellence, product leadership and the primacy of customer intimacy which can
certainly lead to the success of the company.
Besides, the challenges can also be observed with the relationship with the strategic
choices and the reward and compensation strategy which depends upon the culture and the
mindset of the workforce. This can articulate the employee’s behavior through the adoption of a