What are compensation strategies?

QuestionsWhat are compensation strategies?
Priya Vishwas asked 1 year ago
3 Answers
Nikhil Rawat answered 1 year ago
There are different factors in an organisation that is influenced by the strategy adopted by the firm. Compensation strategies always decide how the employee should be paid without a burden to the organisation. They choose the most appropriate yet affordable compensation plan. The employees are offered compensation packages according to their financial status of the employee as well as the paying capacity of the firm. It is usually the HR team or the compensation team which lays out the different strategies and approaches to compensation and chooses the best among the different alternatives available to the company. They are bound to make sure that the strategy adopted benefits the employee as well as the firm.
Deepak Goyal answered 1 year ago
The main strategies that are adopted at the time of laying out the compensation plan of the organisation are that the plan should be affordable to the employers, structured in a manner that is favourable to the employees as a whole and ensures the quality of the employees. The main strategy should always be to retain employees and not exploit the resources of the organisation. By protecting the employees these organisations can have a competitive advantage over other firms in the same field. Employee compensation is inevitable so the firm should adopt the most feasible option which is available to them regarding the same. Compensation strategy helps in understanding what are the different elements in the compensation package that is prioritized.
Akshaj Singh answered 1 year ago
Organisations must know what are the different strategies available regarding employee compensation. These compensation strategies affect the success of the business. Choosing the best strategies will result in talent acquisition of the employees as well as retention of employees which in return increases the firm's efficiency in the field. When an employee works in an organisational culture they expect to be rewarded. If the employee work in favour of building up the organisation's culture strategy is adopted accordingly whereas the strategy adopted to compensate an injured employee is different from the former. In short, we can say compensation strategy states the compensation scheme that is offered to the employees.