Role of Compensation

In: Business and Management

Submitted By Beverly
Words 721
Pages 3
Role of Compensation Paper
Beverly L. Clanton
University of Phoenix
HRM 424
Will Dorrieu
Role of Compensation Paper
Explain the role compensation plays in the achievement of organizational goals.
To any successful organizations a solid compensation system is critical. In order to attract qualified applicants to an organization and retain them, one must first provide mechanisms. Compensation plays a very important role in attracting the best talent in the organization as well as retaining them for a long time. It thus helps in creating a solid human resource responsibility in the organization which enhances the productivity, efficiency as well overall quality in the organization. A sound human resource infrastructure with the appropriate set of employees possessing the proper set of skills for the right job is critical to the success of any organization, which is perfectly achieved via a suitable compensation plan. Further, in order to avoid high attrition levels, compensation plays a key role in retaining the top talent in the organization.
To maintain high standards of productivity and service, the organization must motivate employees. A suitable compensation, incentives and rewards program is the key motivator in any organization today. In order to motivate employees and boost their morale to achieve desired performance levels and goals, compensation plays a key role as in order to achieve more incentives and compensation, employees raise their performance levels. In the absence of compensation plans, employees will not be motivated to perform efficiently and will always look for changing the current organization.
Organizations should reward employees for their specific contributions to the achievement of organizational goals and objectives. In today‚Äôs dynamic business environment where innovation end efficiency is the key, compensation is a…...