The company determines employee compensation to recruit quality talent and prosper its assets. But, can all types of compensation be implemented in all types of industries?
As HR, determining compensation helps strengthen the attraction to recruit new candidates and make employees loyal to the company.
Choosing the right employee compensation strategy is necessary to be in line with business goals and not waste the budget by providing the wrong compensation.
The question is, can all types of workers compensation in Hawaii be implemented in all types of industries? We will discuss it in this article. Listen to the end!
What is a Compensation Strategy?
Employee compensation strategy is a plan to determine employee benefits and salaries to be in line with company goals. Compensation strategies are needed to recruit and retain people who have the appropriate skills, competencies and attitudes to carry out their duties.
Why is the compensation selection strategy important?
The compensation strategy will determine the company’s position in the market and can influence employer branding . These are the reasons why a compensation strategy is needed:
Sharpen the recruitment process
In addition to influencing the process of attracting top talent, employees who feel helped by the compensation provided will be longer in the workplace.
Attractive compensation is a selling point that stands out from competitors.
Determine budget settings
A compensation strategy can help a company operate within its budget.
For example, to provide bonuses and overtime pay, determining how much can be seen from the existing budget.
This also applies to when employees want a raise.
Creating better employee morale
A good compensation strategy makes employees feel valued as an important part of the company.
When employees feel valued, employees tend to be happier and get job satisfaction, which will affect productivity and create a pleasant work environment.