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Running head: COMPENSATION PRACTICE 1 Assignment 1: Compensation Practice Shauna Frierson Compensation Management- BUS 409- Professor Fitzpatrick January 25 th 2018
COMPENSATION PRACTICE 2 Assignment 1: Compensation Practice James River Insurance Company (JRIC) is a publicly traded company who first opened their doors on July 1, 2003 . James River operates as an Excess and Surplus carrier in the United States, and specializes in insuring hard to place insurance risks . In 2003, James River was assigned a rating of A- (Excellent) from A . M . Best Co and in 2016 A . M . Best Co . upgraded the rating to A (Excellent) . For the past 5 years James River has been listed as one of the best places to work in the Richmond area by the Richmond Times-Dispatch and the Richmond-chapter of the national Society for Human Resources Management (“James River…”, 2018) . The competitive and compensation strategy of the company have a lot to do with the accolades it receives . Strategic compensation refers to the design and execution of compensation systems to support both competitive business and human resource strategies (Martocchio, 2017) . The selected compensation and competitive strategies of a company are vital its success . Competitive and Compensation Strategies The competitive strategy is typically the first strategy to be developed . From there, the human resource and compensation strategies are adopted . James River Insurance Company utilizes the differentiation strategy . This strategy’s objective is to produce products or offer services that are different or hard to get from competitors, thus gaining a competitive edge (Martocchio, 2017) . JRIC aims to underwrite unusual, often hard-to-place commercial exposures, such as high-hazard products liability that other insurance companies may deny . The human resource strategy refers to the human resource practices and processes and how they
COMPENSATION PRACTICE 3 relate to supporting the company’s objectives . The two compensation strategies that are utilized by JRIC are skill-based and pay for knowledge programs . The objectives of skill-based and pay for knowledge programs are to reinforce to employees the importance of what someone does on the job versus what they bring to the job (DeNisi & Griffin, 2016) .

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