Need to recruit and maintain said employees via a

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need to recruit and maintain said employees via a competitive compensation package. When HR professionals are deciding on a strategic compensation policy there are a few questions that need to be
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asked including: Is compensation strategy suitable for the overall objectives of the competitive business and HR strategies; Is the choice and design of the compensation practice suitable for the compensation strategy; and Does the implementation of the compensation practices effectively increase employee job performance? (Martocchio, 2017). Additionally, organizations should understand the workforce they’re looking to attract, have a realistic budget in mind and be able to implement the compensation plan in a way for all employees to understand regardless of learning style. The total compensation package is made up of both extrinsic and intrinsic rewards. An intrinsic reward includes personal achievement, professional growth, sense of pleasure and accomplishment. An example of this will be training and considerations the organization would make to improve the self of an employee. Overall, it is the value employees receive from doing their job. While extrinsic compensation is a tangible reward such raises, or other mandatory or
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discretionary benefits. Most employees are more familiar with the extrinsic rewards are it may deal with retirement plans, health insurance, and/or bonuses. Overall, for an organization to retain the right employees, it is important to pay the employee a competitive wage and compensation package. Accordingly, an organization shall have a competitive strategy which includes a competitive compensation and benefits package when it comes to retaining and motivating their employees. However, not all employees will be interested in the same compensation and benefits package. For example, an employee who is more focused on retirement may be more interested in a retirement plan as opposed to an employee who is more interested in their wages to pay off student debt. Therefore, the organization will not have a one stop shop when it comes to compensation packages for all employees. This is also true from organization to organization; as each will have a compensation and benefits package that will not be the same as a similar organization. Overall, an organization will strategically develop a compensation and benefits package that will best suit the needs of the organization and the employees. It’s important to be creative during the process to ensure they’re meeting the intrinsic and extrinsic need of the employee as well as organizational goals. Every organization wants to recruit and maintain the best employees for its business and doing so requires a competitive compensation package as employees will compare packages while
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considering a potential place of employment. Please review the HR Basics: Employee Benefits (Links to an external site.) video which will provide an overview of employee benefits. References Gregg Learning. (2017). HR basics: Employee benefits (Links to an external site.) [Video file]. Retrieved from Martocchio, J. (2017). Strategic compensation: A human resource management approach (9th ed.). New York, New York: Pearson.
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