Compensation Strategies, Best Practices, and...

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Compensation Strategies, Best Practices, and Challenges NAME: INSTITUTION: COURSE: DATE:
Compensation Strategies used in Retention of Employees Compensation is primary factor which impacts economic and social welfare of staff. Therefore, it is mostly considered when organization are designing their strategies for remuneration and compensation. However, supply of labor is somehow high in certain industries, retaining of workers is vital to the sustainability and uninterrupted performance development in modern corporations. Skills-based pay permits organizations to remunerate their employees depending on how their skills are valuable. The reason they choose this method is because it allows firms to improve development of skills, which influences their performance in a right way. Bonus or incentive compensation is a different payment method used by contemporary organizations.
Compensation Strategies used in Retention of Employees Markedly, this strategy of compensation enables a company to adopt a flexible method of remuneration, which offers bonuses and incentives based on their performance and contribution to the organization. The reason for choosing this policy is because the technique allows organizations to utilize pay-for- performance approach, that are useful in improving work performance. In addition, companies apply the incentives approach of compensation is to normalize employees to be committed that offer solutions to the issues that impact their company, that bring enhancement in developing an organization. Studies show that institutions that want to retain their staff provide them with incentives and other benefits, specifically when the industry is competitive. Other firms use merit-based compensation to retain and attract more top talents .
Compensation Strategies used in Retention of Employees Researchers have stated that many business corporations utilize the merit-based approach in order to decide on the salaries workers get, where utilization of skills and job assignment are important factors.

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