The previous papers devoted to the scenario emphasize the critical importance of employees for the evolution of the company. Their contribution is the key element of achievement, and it means that members of a team should be motivated to do their best regarding the existing goals. Under these conditions, payment management and provision of appropriate benefits and services for the staff acquire the top priority as the central approach to the creation of a positive climate within a collective and preservation of the high level of employees’ commitment.
At the same time, some essential issues should be considered when establishing a salary and offering workers multiple benefits. For this reason, the company’s top management should elaborate on a plan of action regarding valid payment to avoid a decrease in motivation or low-performance levels among employees.
For a company consisting of 25.000 employees, determining the appropriate size of the reward and introducing an effective payment scheme can be one of the significant challenges. It is vital to create a competitive program that would attract specialists and will be considered appropriate regarding the current market. At the same time, the compensation plan should advance the existing strategic goals of the firm. In such a way, the offered package that includes wages, incentives, and benefits should motivate workers to function by the existing plan and contribute to the company’s growth. The aligned reward strategy is vital for companies as it improves their image among potential workers and helps to create a pool of specialists ready to cooperate with the organization.
The causes for the emergence of problems with sufficient compensation might include difficulties in job evaluation and determination of an individual’s contribution to the work of the company. It is fundamental to outline the basic factors that impact pay rates such as legal, union, and strategic ones and design a scheme including direct financial payments and indirect financial statements.
Additionally, there are compensable elements of any job, such as skills and efforts, that should be measured to ensure that an experienced individual acquires payment that is sufficient and can guarantee his/her high satisfaction level. For this reason, the strategic plan for managing compensation should include an effective approach to job evaluation and creation of aligned reward strategy that would help to support existing goals and motivate employees.
The possible solutions to the outlined issues presuppose the utilization of tools that are available for managers at the moment. First, job ranking and job classification can be used to establish the complexity of tasks and the level of responsibility any employee has at the moment. It will contribute to the creation of a fair rewarding scheme that considers compensable elements, skills, and efforts demanded from an individual.
The second effective solution presupposes the determination of the existing benefits picture to provide workers with services and rewards relevant at the moment. Because of the critical importance of this factor for individuals and its impact on their retention, the company should be ready to consider their basic needs and offer sufficient health care benefits, insurance, and retirement options. This method will guarantee the high level of their devotion and readiness to contribute to the evolution of the company regarding its current needs.
In this regard, the following implementation plan can be offered:
- Evaluate existing jobs by using ranking and classification
- Select compensable factors such as skills, experience, and responsibility
- Determine the relative importance of these factors and support them with specific rewards
- Conduct market analysis of salaries to establish a competitive payment scheme
- Establish rate ranges
- Analyze the existing benefits picture
- Create an aligned rewarding strategy regarding the information acquired in the previous stages
The vital element of the implementation plan, as well as of the company’s payment strategy, is measurement. It helps to determine the expected amount of payments, the existing level of employees’ satisfaction and their expectations, and compare all offerings in the market segment. It also helps to understand if the current plan remains a sufficient tool to meet existing strategic goals. Regarding the given issue, the measurement can be performed by investigating the market via surveys to acquire the benefits picture and the idea of relevant salaries. Within a company, this task can be accomplished by ranking jobs and analyzing the workers’ demands for health care benefits and insurance.
In conclusion, payment management is a vital element of the functioning of any company as it guarantees the creation of an effective scheme of rewarding that motivates employees to work with high performance and commitment levels. For the given case, the aligned rewarding strategy is fundamental because of the high number of specialists and the need to improve its functioning and enter new markets, which presupposes the recruitment of individuals who can be attracted by competitive offerings. The creation and implementation of a useful approach to rewarding are practical tools to align the work of the firm and avoid problems in its further growth.