Keeping the employees is a challenging process for many companies because of the increased competitiveness in the business world. In order to attract and retain employees, managers propose complex compensation decisions, various benefits, training and development opportunities, and improved workplace conditions. In spite of the fact that techniques to keep employees and promote their satisfaction are numerous, the managing compensation methods should be discussed as most effective in comparison with the other approaches because these methods are associated with the employees’ intrinsic motivation and external factors, these methods stimulate the employees’ productivity, and they respond to the employees’ individual needs.
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The managing compensation methods are used under the influence of different internal and external factors. Employees are inclined to find the places and positions where they are rewarded most effectively. However, the focus on managing compensation can provide leaders with the opportunities not only to keep employees but also to increase the firm’s competitive advantage. Developing compensation policies, managers can propose exceptional benefits and compensation packages which are correlated with the general tendencies in the industry and which motivate employees to choose the certain firm to work with (Snell and Bohlander 84). Being attracted by compensation policies, employees rely on receiving competitive salaries and benefits. The direct reference to the compensation is a strong stimulus to increase the employees’ motivation. As a result, both managers and employees gain significant benefits.
Furthermore, the managing compensation approaches are important to increase the employees’ productivity. It is found that employees improve their performance and productivity when they are oriented to receiving concrete rewards for their efforts, and the employees’ efforts are more intensive in comparison with the efforts associated with the perspective to participate in training or change the working setting (Snell and Bohlander 84). Orienting to receiving additional material resources and compensation regularly, employees are inclined to increase their productivity proportionally to the proposed reward (Snell and Bohlander 97). That is why, to keep employees productive and satisfied, it is necessary to revise and manage the approaches to compensation because the material aspect works more effectively to retain employees.
Although there is an opinion that employees are more stimulated when their individual needs are addressed with the help of balancing the work and life and improving the working conditions, managing compensation approaches are more appropriate to stimulate the changes in the employees’ behavior. Managing compensation, leaders can create the fair and equal conditions for all the employees to contribute to their professional growth according to the individual needs. Having chosen the position, employees pay much attention to the compensation question because of having different experiences and life conditions as well as individual needs. That is why, only positive changes in the companies’ compensation policies are expected (Snell and Bohlander 86). While proposing alternative variants to address the employees’ needs, managers can face such barriers as the inappropriateness of the solution to the determined need or problem. The approaches associated with managing compensation are more effective to address the interests of many employees.
The managing compensation is the technique which is actively used by managers in order to attract and keep employees in the competitive environment because it provides more benefits for leaders and employees than the other approaches. This technique is used to stimulate the employees’ motivation to increase productivity and improve performance directly and regularly when the other methods can guarantee only temporary effects.
Snell, Scott, and George Bohlander. Managing Human Resources. New York, NY: Cengage Learning, 2012. Print.