Friday, June 14, 2019

Journal Article Research and Analysis Essay Example | Topics and Well Written Essays - 750 words

Journal Article Research and Analysis - Essay ExampleHeneman (2002), states that for sympathetic resources compensation is the prime source that enables companies to attract and retain talents, thus the compensation management is a critical comp peerlessnt of human resource management and of the finished organization.The importance of compensable factors, such as knowledge required by position and skills requirements, problem solving and accountability (Jones, Steffy & Bray, 1991) atomic number 18 dictated by the multifactorial decisions that executives should make in order to positively relate companys recruitment and retention efforts and to reach organizational goals. Therefore, choosing a compensation strategy is one of the main human resource decisions made by any organization. The development of such strategy is highly important because it promotes employee recruitment, retention, motivation and good performance give thanks to the set of offerings that a company makes. Ho wever, not every organization compensates its employees or uses compensation strategically. While wages and benefits policies ar used without strategical intentions, compensations instead are aimed to improve morale, reduce employees turnover and help achieve targets within an establishment (Das & Baruah, 2013). However, as stated by Hong, Hao, Kumar, Ramendran and Kadiresan (2012), compensation is not one of the main factors that impact the employees turnover despite being a critical factor in reducing managerial turnover. When determining the compensable factors, the developers should consider such policy choices as internal alignment, external competitiveness, employee contributions and the management of the pay system. As internal alignment deals with the pay relationships within the organization, it dictates the level of skills and knowledge that are needed, thus the compensation and benefits programs are granted for the special set of such skills. As companies are facing seve re competitiveness, they should offer applicants such compensation packages that

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