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Tthe Default Package essay
← The Compensation StrategySix Facets of Understanding by Design →

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Going beyond salary, retention has been targeted by using extras to the default package. These packages can be accurately termed as benefits. “They range from tuition reimbursement to encourage employees to go for further studies, heath packages that cover the employee and immediate family against health related contingencies which in many cases may have a toll on the family’s income” (Gomez-Mejia, 1992, p. 63). Even low earning employees have a chance to get access to quality healthcare. Retirement is another subject that the benefits have targeted to convince potential or existing employees to remain in service or join the team and enjoy the accompaniment.

Performance of the company is summation of the individual performance of the individuals that hold office and roles in the company. With this in mind, the companies therefore make known their objectives and goals to the employees. “Follow ups are to be made in the form of individual appraisals to ensure that one meets set goals that will translate to high performance of the company” (Maxwell, 1990, p. 27) Also it is basis for salary increment such that employees who perform better deserve to get higher compensation. Reliance on that can have a positive influence on employee performance.

Standards have been put in place to ensure that treatment of employees and interaction with them does not exploit them. This is particularly to the unscrupulous business people who would take advantage of any loophole. A good system will follow the laws set at the local and general laws of the land, state and federal law for example. Some of the objects captured include frameworks for compensation like minimum wage and overtime payments. “Gender and treatment of people with disability, racial and discriminations that should be avoided by companies are stipulated” (Graham, 2008, p. 39) Law suits follow if there is breach of any of these laws and they cause unnecessary costs and bad image.

In any case, the implementation of these strategies requires management and allocation of resources. It is important therefore to have a structure through which protocols and processes are activate and followed to make sure that the target is obtained in ensuring that the employees are motivated for work and goals are achieved. Compensation does not preliminarily stand for the stated salaries of the employees. It is all rounded and it includes all the benefits that each employee is entitled to, as well as any other incentives.

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