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Goals Of Compensation Professionals

937 Words4 Pages

This paper aims to discuss some of the common goals to adopt for the compensation professionals in an organization.

Why it is important to compensate employees? Employees are the pillars for an organizational strength as they contribute their efforts to enhance organizational performance, improve productivity and profitability of the company. Therefore, the employees have the full rights of sharing the profits and it is considered illegal company practices if the employer never compensates the workforce appropriately. Therefore, companies are hiring the compensation professionals in order to ensure fair compensation policies for its employees as well as to establish effective labour force. Attracting, retaining and motivating employees, compliance …show more content…

A good compensation management practice emphasizes an unbiased pay, efficient preservation of a dynamic workforce as well as ensuring legal compliances. The compensation professionals streamline the administration of the compensation programs such as calculating and determining the base pay, allowances, variable pays, paid time off, health insurance, pension and retirement plans for the employees. In addition, the compensation professionals is also accountable to buttress the strategic conditions of the firm in order to determine whether the developed compensation programmes will suit the general corporate needs as well as to relate the compensation rates to the corporate’s financial performance. Therefore, it is considered as rational that integrating an internally consistent compensation system with the market competitive compensation system for structuring the compensation management in the …show more content…

In both public and private sector, employees will not been paid ‘generously’, in other word ‘over-paid’ although the pay policies in the government sector is differ from the private sector, whereas in Malaysia the civil servants will be paid based on their academic qualifications, job title and seniority level as per the specific salary scale which comprises of base pay, civil service allowances, housing incentives, and the cost-of-living allowances while the private sector employees will be paid based on their academic and professional qualifications, specific skills and working experience as well as their performance. These differences exist due to the limited budget allocation from the Ministry of Human Resources for the civil servants and in the private enterprises, pay rates are restricted due to the companies’ fiscal and profitability. The compensation professionals that serve the both public and private sectors should analysis the employers’ ability to compensate the labour force. Therefore, in order to determine a cost-effective compensation policy, the compensation professionals should consider the organizational performance, the economic and labour market conditions, competitors’ performance, worth of a job, employees’ worth to perform the job, area wage rates, cost of living and the company’s

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