Justification on implementation of new compensation strategy
Compensation is the reward given by an organization to an employee for the level of work done, their performance, and the general contributions they have made. This reward can be direct or indirect as well as monetary or non-monetary values. Compensation promotes consistent productivity in the organization. To enhance productivity there are implementations of new compensation that will help retain, motivate, and grow the workforce of multi-generational knowledge workers as justified below.
Justifications on implementation of new compensation strategy
Attracting employees
It is undoubtedly true that high wages will automatically bring more job applicants (Chang, 2016). Before many people apply for job vacancies or take a certain job offer, they consider the salary first. Therefore, good and relative salaries will add an advantage in saving the organization the stress of calling people on job vacancies.
Retaining employees.
As per the normal human nature, most of the employees like comparing their pay against others (Jiang, 2015). Due to this, they get to understand the worth of their position in the organization. Therefore some employees may go as far as comparing their pay with other organization and if they get a sense of balance and equity in their current work placed they tend to retain their working stations.
Motivating employees
As it stands motivation is the main force that makes pushes workers to do their level best in performance to enhance productivity in the organization (Chang, 2016). Workers could be motivated in various ways such as through addition in salary or even through rewards such as promotion. This factor makes the employees work without any external force or supervision and make them goal-oriented.
Engaging employees
This is achieved through the creation of structural levels in the organization, whereby there is a protocol of positions from the topmost to the lowest (Engert, 2016). This kind of arrangement makes the workers know their boundaries and stick to their jurisdiction of work. This brings concentration, as every worker is fully involved in his area of work aiming towards achieving the organizational goals
Management of personnel expenses and cost control
Cost control is very essential to an organization. This is because each financial year benefits take a bigger percentage of the compensational cost. And to control this, some measures such as reducing administrative cost through outsourcing problems and combining benefits cost-sharing plays a bigger role in cost control (Brady, 2017). This is done when the employees are told not to pay tax and the organization takes over them as business expenses and on the other hand, it cuts off part of their wages to pay for some benefits cost.
Conclusion
It should come to the knowledge of the senior management that this compensation strategy is very competitive in the market place as it has an adaptation of current trends in the market. The strategy goes hand in hand with the new economic standards as they are mainly focused on achieving the goals of the organization through maximum profit accumulation. Motivation, engaging and retaining employees, and management of personnel expenses are the most current trends in the market, therefore this strategy is the best aim at achieving the organizational goals.