An effective compensation system can help an enterprise promotion among competitors, as this is a factor of strong impact on the performance of employees. In response to some of the events in the companies that changed them, motivation systems were developed as a counter to the demoralization of employees (Alam, 2023). Over time, the original problems lose relevance, and the situation rapidly changes in the market and enterprise. Strategic compensation is one of the most important elements of motivation for staff. Thanks to this, employees can feel more needed in the company.
People may perceive strategic compensation differently, but it is an effective retention method. As an HR manager at Keeprite Refrigeration, I can say that more people felt the moral high ground when the strategic compensation system began to be implemented in the company. The lesson from the class on compensation can be applied at work in order to create better working conditions for employees. This has a beneficial effect on the productivity of the company as people put more effort into their work. There is potential in academic life to explore this topic and develop compensation theory. A more consistent and effective reward strategy can be created through the interaction of different company departments. For example, the finance department can fairly distribute remuneration based on managers’ reports on personnel performance. Thus, three interested parties (finance department, manager and staff) are involved in creating strategic compensation. However, this raises the question of whether, in such a case, compensation could be awarded unfairly to the contrary. As a colleague pointed out, receiving feedback can also be one of the beneficial ways to improve the reward system.
In conclusion, it can be said that a compensation strategy, whether monetary or otherwise, is vital for companies. The modern worker is the bearer of professional skills and knowledge, and he/she is more independent from employers. He/she decides in which company it is more profitable to realize his knowledge. Strategic compensation helps people feel relevant to the organization. Each employee must understand that his work is necessary; in this case, the goals will always be achieved.
Reference
Alam, A. (2023). Cloud-Based E-learning: Scaffolding the Environment for Adaptive E-learning Ecosystem Based on Cloud Computing Infrastructure. In Computer Communication, Networking and IoT (pp. 1-9). Springer, Singapore. Web.