英文薪酬教程.docx

CHAPTER 10: COMPENSATION AND BENEFIT LEVEL STRATEGIES Overview: Pay tactics of low-wage and high-wage organizations. “How much do we have to pay in order to attract more machinists for the new project? ” “The policy of this company is to be 10 percent above the market. You make sure that we are! ” “But this  survey in our professional  journal  indicates  that  we are  15 percent below the market. How can you say we are paying market rates?  ” “Boy, this pay raise isnt even up to rise in the cost of living!  ” “With whom should we compete for workers?  ” “Do we need the best workers, or can we get along with average ones? ” All these questions and comments have to do with how the compensation practices, levels, and strategies of an organization are decided. The compensation and benefit level is the average compensation paid to employees. This has two implications. The first is external: how does the organization compare with other organizations? This question is a strategic one of how the organization wishes to position itself in the marketplace. The second implication is internal. The average compensation is a reflection of the total compensation bill of the organization. Labor is one of the claimants on organizational resources. The size of the compensation and benefits bill is a reflection of who gets what within the organization. The decision on compensation levels (how much will the organization pay?) may be the most important pay decision the organization makes. A potential employees acceptance usually turns on this decision, and a large segment of the employers costs are determined by it. ORGANIZATION COMPENSATION DECISIONS Compensation decisions are typically micro (individual) or macro (total organization) focused. Although organizations are under no constraint to separate these decisions, a course of study should. In practice, most unsophisticated organizations makethe decision on compensation level (how much to pay) and compensation struc