The organization should also focus on improving the compensation and benefit structure which will help in improving the performance of the organization.With the increasing competition, different companies are focusing on providing added benefits to the employees along with a higher pay scale. To improve on the satisfaction level of the employees the company needs to focus on the pay structure and focus on providing fair pay to all the employees. The pay policy should be in line with the other sectors in the organization, along with the pay package the company should also focus on providing extra benefits to the employees such as 401K health benefits, and other health and entertainment benefits.
For designing the compensation, the organization needs to follow a particular direction.
The compensation strategy of the company is to be made in line with the corporate as well as business level strategy so as to gain the competitive advantage. Internal equity evaluation and administration:
While designing the compensation strategy it is very important for an organization to balance between internal equity and external competitiveness. As the compensation that an employee receives is perceived to be equitable in relation to its peer group as well as other organization particularly of the same industry. Even if the organization is not earning less the CEO can earn well with his performance and then can earn a real good sum as income.
The references are:
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George Dreher, Thomas W. Dougherty, (2001), Human Resource Strategy, 1e, the McGraw-Hill Companies
George Milkovich, Jerry Newman, (2004),Compensation, 8e, the McGraw-Hill Companies
John R. Schermerhorn, James G. Hunt, Richard N. Osborn, (2003), Organizational Behavior, 8e, John Wiley & Sons, Inc.
Mary, (2008) one step compensation framework, available at < HYPERLINK “http://www.compensationframework.org/index.php/guide/compensation_and_internal_external_equity/” t “_blank” http://www.compensationframework.org/index.php/guide/compensation_and_internal_external_equity/>
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