Introduction
Elm, a pioneering firm in integrated digital solutions, was founded in Saudi Arabia in 1986. This research company invested in the localization of technologies and focused on e-government transformation (Elm, 2022). Elm has a unique and inspiring story of development, strengthening its competitiveness, and entering higher levels year by year, proving its competence and strive for innovation. Noticeably, precisely innovation drives Elm and serves as a basis for the organization’s projects, objectives, and strategies. Thus, as stated in the firm’s profile: “if the integration and harmony of our sectors is the body that anchors its accomplishments, then innovation is, indeed, the spirit that governs its success” (Elm, 2022, p. 6). As a consequence, when developing new strategies or structuring new projects, Elm orients on the latest global trends, policies, and experience to ensure that innovative approaches are used in every step or area.
Further, it is possible to discuss Elm’s integration, coordination, and organizational efforts. To make sure that Elm’s level of service is excellent, the firm decided to divide its business sectors in accordance with different specializations, including health, labor, security, and others. At the same time, Elm is one of the few organizations that “combine all solutions under one umbrella (consultations, technology, outsourcing, and training)” to enhance customer experience (Elm, 2022, p. 19). Overall, after being established in 1986, Elm managed to be introduced to the e-security sector in 2002. Five years later, the organization was “transformed into a joint-stock company owned by the Public Investment Fund,” and in 2009, Elm realized its strategy of expanding outside technology (Elm, 2022, p. 5). After seven years, in 2016, the business finally went global, strengthening its image and reputation and achieving more robust competitive advantages.
The way Elm perceives its employees deserves a separate brief description since it is related to the selected topic of this paper. First, it is extremely valuable that the company recognizes hidden talents and creativity in its works and allows them to use their potential. Having a workforce of over 3,000, Elm views and treats its employees as indispensable assets to global reach and success and one of the two primary pillars that drive the organization’s success and maintain high profitability (Elm, 2022). Elm does its best to ensure that all staff members can interact and work in a harmonized and friendly environment where an emphasis is placed on creativity, shared decision-making, and ideology over money. As for compensation management, this firm is considered to have one of the best strategies and attitudes toward rewarding its workers. Finally, the vision of Elm is to “become the first destination among digital platforms that deliver comprehensive and satisfying customer experience” (Elm, 2022, p. 5). The key values of the company are reliability, flexibility, trust, creativity, and customer satisfaction.
One of the last steps in overviewing the organization is to outline its main services and operations. As mentioned above, Elm specializes in consulting services, including assisting government sectors in transferring to e-government with the following services: management consulting, transformation programs and project management, strategy implementation, IT consultancy, and data analysis consulting (Elm, 2022). Finally, some other services are integrated customized business solutions and ready-made options for different clients in numerous areas.
Compensation and Employee Satisfaction: Discussion
Compensation is an integral part of every business, and the more thought-through, positive, and effective it is, the more loyal, involved, and committed the staff members are. When defining compensation, one may say that it is a general term for employees’ wages, salaries, bonuses, rewards, and other incentives earned by workers. Evidently, without an adequate compensation system, a company will not be able to give its employees appropriate rewards for their work, which will significantly reduce their motivation. The latter can be explained by a simple truth: there are not many people in this world who are ready to make colossal efforts on a daily basis and make a modest profit.
When referring to compensation, two other concepts appear: compensation management and compensation strategy. One may say that the former is a highly important and complicated process of determining, analyzing, and managing employees’ salaries and other perks listed above. Managers responsible for this process should be able to identify all the factors that influence the wages of the staff as a whole and of each separate employee. This practice of compensation management also includes the well-planned distribution of the overall pay, in-depth and fair assessment of whether a worker’s efforts match the money they receive, and effective comparison with compensations paid by other firms in the market. As a consequence, without efficient and professional management of this process, it is likely that the company will lose its competitive advantage. Further, as for compensation strategy, this concept may be described as a set of tools, practices, and steps that a manager or the company as a whole apply when managing compensation. It is the approach of an organization towards its position on the job market, employee benefits and pays, and reevaluation or restructuring of these incentives.
Finally, since the topic of this paper is related to the various methods and tools used to measure employee satisfaction with the compensation they receive, it is crucial to outline these techniques. One method that does not directly involve the firm’s employees is when HRs use third-party websites to find reviews left by the company’s workers to analyze the advantages and disadvantages that they list. Another technique is for HRs to compare and contrast incentives provided by their organization with rewards and bonuses offered by other firms in the market. Some other tools are to learn the opinion of employees directly: for example, by conducting anonymous or not anonymous interviews, surveys, or questionaries. Finally, metrics like eNPS or ESI can also be helpful if adapted and used properly.
The primary requirements for all these and some other tools are to be ethical, safe, and informative. It is also beneficial if a technique is not costly and time-consuming but can provide a company with useful and valuable information. The moral side of the measurement techniques includes preventing invasion of privacy by asking only questions related to the workplace. Finally, while all the mentioned tools are advantageous and helpful, firms usually select only some of them. Elm is an example of a company that deals with employee compensation in a perfect manner, which is why it may be insightful to conduct an interview with one of its HRs.
Interview
How can you define employee compensation and its significance?
At Elm, we value our workforce. Thus, we see compensation as the best way to show them that they and their everyday efforts matter. Elm uses high salaries, bonuses, and many other rewards to thank our staff for their loyalty and contribution to our growth. Without good compensation, we would lose talented and committed employees, who are our organization’s little but integral gears.
To what extent does Elm value high employee satisfaction with their salary? Why?
We try not to underestimate the rates of employee satisfaction in general and especially with regard to their bonuses and rewards. One of the primary responsibilities of our compensation management is to assess this satisfaction on a regular basis. The reason is simple – if we fail to pay attention to low contentment with wages, our workers will soon fail to be productive and motivated.
Does Elm use any specific tools in measuring employee satisfaction? If so, what are they?
Surely, at Elm, we utilize several methods to make sure that we pay enough for the efforts of the staff members. Without these tools, we would not get relevant results. Our compensation managers mainly use surveys, personal meetings, analysis or reviews on third-party websites, and checking the Employee Satisfaction Index (ESI).
What benefits does Elm actually see in this measurement process?
Well, the main advantage is that the process itself is not much more complicated than other elements of compensation management. Still, it can have an evident effect on the company’s performance. It also helps maintain good connections, trust, and understanding between Elm’s leadership and workers. Most importantly, when identifying low satisfaction rates and addressing this issue promptly, we can prevent some future problems associated with decreased motivation.
In contrast to the previous question, what are the costs or disadvantages of this process?
I am sure that all the disadvantages taken together cannot be more significant than any of the pros of this process. However, measuring employee compensation satisfaction can be costly and time-consuming. It may also happen that some workers are unhappy with their salaries but do not want to participate in surveys, which leads us to a vicious circle.
When was the last time you measured your workers’ satisfaction with their incentives?
At Elm, we try to do it regularly, using different tools at different times. If I am not mistaken, two months ago we conducted an anonymous survey in various departments after introducing a new bonus system. Three weeks ago, our managers also studied reviews on various external websites.
What happens if the measurement shows low or high satisfaction?
If we see high satisfaction levels, we celebrate this small victory. If the rates are low, our managers use additional tools to verify the information. Then, we identify the causes and the ways to eliminate them.
How do you ensure that the tools you use are ethical and safe?
First and foremost, we never use the data and information we receive against our employees. It is totally safe for them to take part in anonymous surveys and personal meetings because, even when showing dissatisfaction, these workers are never fired, gaslighted, or blamed. Questions we include in surveys are not intended to invade personal space.
Have you ever experienced the need to stop using some measurement tools? Why or why not?
Several years ago, we decided to place a suggestions box for everyone to share their opinions. However, many workers started using it for other purposes, and we removed it.
From all the tools listed earlier, what is/are the best to use? Please, elaborate.
The Employee Satisfaction Index seems to be quite an informative and quick way to assess the rates. When we see the average satisfaction level, we understand whether any interventions or additional techniques are needed at the moment. Surveys are also wonderful tools because our staff members are ready to share their most disturbing thoughts since they know it is anonymous and will be addressed promptly. Therefore, we always learn valuable and reliable facts when conducting surveys and rarely doubt the sincerity of responses.
Similarly, which tool is the least effective but still recommended for use?
When our managers review third-party websites and get acquainted with people’s views on our compensation system, it is not always informative. While it is challenging to make sure that the reviews are actually written by our employees, we still find this tool effective because it provides us with numerous insights.
Are there any special ways to be certain of the reliability and credibility of the received results? Please, explain.
HRs’ experience and practice allow them to differentiate between credible and doubtful information.
What are some characteristics that should be found and avoided in an ideal tool?
Evidently, tools that provide valuable data but cost less are perfect. Also, the information they provide should be interpreted easily and refer precisely to employee satisfaction with compensation. Ambiguousness, unstable security, and unethicality are the characteristics to avoid.
Have you ever encountered a situation when an employee refused to participate in the measurement process? If so, what was their explanation?
Of course, and that was not the only case. Overall, some workers do not want to take part in personal interviews or even surveys because they are afraid of their personal information being used against them or becoming compromised. These are usually our new team members, and after several months, they make sure of the safety of the process and agree to participate.
May you give some recommendations about using the main measurement techniques and avoiding some risks associated with them?
First, businesses need to ensure that their HRs are qualified and engaged enough to use these tools, interpret the results correctly, and spot any patterns or differences. Second, we would recommend trying various techniques and finding what works best for management and employees. It is essential to avoid unethical methods that would compromise employees’ personal data or put them in an awkward position in front of leaders or colleagues. The latter also refers to another risk – using the obtained data against specific employees, for example, publicly shaming them for being dissatisfied with their salary.
Finally, how do you understand that it is time to make the measurement?
Generally, we make sure to conduct at least one of the measurements every two months. However, when we remove or add some rewards or penalties systems or notice decreasing performance or increasing turnover during a taken period of time, conducting a survey is our first step. At Elm, we appreciate the efforts of our talented and committed employees, and for every company that wants to show their appreciation as well, we would recommend using measurement tools in advance rather than after they notice dissatisfaction among workers.
Conclusion
To draw a conclusion, one may say that all the sections of the paper prove the value and helpfulness of various tools and techniques to measure employee satisfaction in relation to compensation. Compensation management as a process allows the business to ensure that its employees are paid according to their efforts, maintain a strong competitive advantage, and retain talented workers. A compensation strategy is a set of tools, techniques, and approaches that managers of the firm select when dealing with employee compensation. It is of vital importance to ensure that the chosen methods and steps can be used within a common framework to achieve better results. Managing compensation successfully and carefully and paying increased attention to various incentives allows the organization to demonstrate and prove its trusting and positive attitude towards the staff members. Otherwise, if a firm fails to show how it values its employees, it risks losing its most talented workforce. When discussing Elm as an example of a company managing compensation in a perfect way, one should notice that this attitude is evident in all areas related to the organization. Elm not only highlights the value of its employees in its profile and on the website but also cares about their rates of happiness and satisfaction in practice. In the interview conducted with an HR worker from Elm, one may understand that the company has a clear idea about the value of compensation management, and the tools they use are quite effective and ethical. Thus, other firms may need to get acquainted with Elm’s approach to measuring worker satisfaction with regard to compensation.
Reference
Elm. (2022). Company profile [PDF document]. Web.