Developing a Compensation Strategy for Knowledge Workers Presentation

This assignment is a presentation that explores the development of a compensation strategy designed to motivate knowledge workers and reinforce the real-time performance appraisal system within a midsized organization. The presentation addresses the need to create a competitive compensation program that attracts and retains a multi-generational workforce. It outlines the key elements of a compensation strategy, including market competitiveness, internal objectives, and employee benefits. The presentation covers topics such as budget allocation, salary ranges, salary audits, and the creation of benefit packages. It also addresses employee feedback, incentive plans, and communication strategies. Furthermore, the presentation justifies the compensation strategy by highlighting its role in employee satisfaction, performance, and retention, ultimately contributing to both internal and external equity within the organization.

COMPENSATION STRATEGY OF
Knowledge Workers

Aim of the study
The aim of the study is based upon the system of designing an effective
compensation strategy for the organization, where this can help in creating a
motivational factor in the mind of knowledge workers associated with the
respective company. This can play a major reinforcing the real time
performance appraisal system that the respective organization have embraced
on all aspects. The other major part associated with the study is based on
creating an understanding in the mind of senior authorities regarding the
effectiveness of this strategy and how it is going to be a competitive approach in
the market.

A compensation strategy is based upon the factors that describes about the organization pay structure that are managed and followed within the respective
company under all terms. This function requires direct communication with the employees where they are made aware about the current compensation structure
and systems that are systematically followed by the organization.
Compensation Strategy

Compensation Strategy Contd.
Some of the major elements that are required to be considered as a part of
designing effective compensation strategy for an organization are mentioned
below:
 The major factor can be based upon, creating an awareness about the
competitive market in the external environment.
 Secondly, the internal objectives for the organization (Noe et al.,2017).
 Making a clear understanding about the compensation structure that will be
implemented and discussing the employees benefits of the same.

Compensation Program for knowledge
workers.
 The first and foremost function implemented has been based on designing a proper
system of budget allocation, this will help in understanding the actual budget amount
spent on salary and for other benefits like bonus and incentives.
 Salary ranges were developed systematically where major motive was to determine
whether the employee pay structure was competitive as compared to other organizations
in the market (Mabaso & Dlamini, 2017).
 Conducting regular salary audits to understand the external factors and demand
associated with the market. The main attention was to ensure employees satisfaction.

Compensation Program for knowledge
workers Contd.
 The other major initiative adopted regarding the compensation strategy was based on
preparing a benefit package for the purpose of attracting and retaining the
employees.
 Benefit packages included other beneficial factors such as health coverage,
retirement schemes and other reimbursement system associated with the
organization.
 A management system was designed to understand the actual performance of the
employees to measure and study the behavioral aspects.

Inputs received from Employees
According to the current compensation strategy adopted in the organization many employees
were satisfied and the feedback was supportive and favorable to the newly implemented
strategy. Along with this some negative feedbacks shared by the employees were regarding:
 Incentives plans were designed systematically, but there were no proper system of
implementation on the planned incentive structure.
 Regarding the compensation structure there were no proper coordination between the
subordinates and the superiors in some departments.
 Benefits like hospitality and other reimbursement were not provided according to the
plan

Other Inputs Received
 Employees union complained about the incentive scheme, where the
employees were not paid incentives and extra benefits as per the norms and
conditions of compensation act of the respective state.
 According to the salary system, there were no systematic conduct of audit
as per the current competitive market condition pertaining in the
organization.
 Feedback received from the family members of the employees were not
satisfactory, where they complained about the health benefits and other
bonus schemes which were not systematically implemented and allowed to
the employees (Shang et al., 2015).

Incentives and Employees Motivation
The major target of the organization was towards creating better system of employees
satisfaction within the organization under all terms. Allowing some amount of financial incentives
may enhance employees to work better and generate better results for the organization. Some of
the Financial incentives allowed are mentioned as follows:
 Providing extra amenities along with actual salary such as pay and allowance.
 Festival bonus schemes which make them more dedicated towards the organization.
 Organization profit sharing pay which make them feel about their actual output earned out of
their hard work.
 Allowing certain benefits associated with the retirement schemes.

Employees Fairness on Pay Structure
Employees fairness on compensation structure will made by bringing an
understanding on the above mentioned factors.
 First process can be through comparing the current compensation structure
with structure that are offered by other competitive organization that are of
same functioning.
 By creating an understanding from the employees union whether the
compensation structure of the organization are appropriate as per the norms
and conditions that are mentioned in the compensation act of the respective
nation

Compensation Strategy to support
Employees needs
 Some of the compensation strategy that supports employees needs of
Knowledge workers are mentioned below:
 Effective incentive plan system which may motivate and create a factor of
dedication in the mind of employees which can be a reflecting factor in the
organizational performance (Zacher, Bakker & Demerouti, 2015).
 A one sided agreement compensation can the other part where in case of
earning a large outcome in limited time, providing extra amenities like side
agreement compensation along with salary may result in higher benefits

Communication Plan for new program
 By arranging a systematic meeting where the employees will be clearly
discussed about the current compensation strategy and compensation
structure that is to be implemented by the organization.
 By adopting an individual mailing system where, employees are sent mail
individually regarding the terms and conditions of the new compensation
strategy adopted in the organization.
 Arranging a suggestion box, where on case of any discrepancies employees
are free to drop their suggestions.