Establishing the pay for performance systems


Assignment: Designing Compensation Systems

When designing a compensation system for an organization, it is important to have a compensation philosophy which serves as a framework for making decisions about various components of the system.

Tasks:

One question to be addressed is how can your compensation program help the organization be successful (e.g., be able to attract and retain talented workers needed to be competitive in the marketplace)?

Some options for consideration include:

Being an "employer of choice" in the industry

Offering top salaries

Putting more emphasis on benefits and less on salaries

Establishing "pay for performance" systems

Offering flexible in work hours, shifts, work rules, dress code, professional development/education policies

Offering designer benefits

ESPP (Employee Stock Purchase Plans)

Write an 8 to 10-page report discussing what factors you think should be considered when creating a compensation system for an organization and why. Include the organization you work for (past or present) and describe the organization's current compensation system. What would you change?

Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; display accurate spelling, grammar, and punctuation.

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HR Management: Establishing the pay for performance systems
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