For that reason, the compensation strategy is the extremely Important section of the overall Human Resource Strategy to keep the company competitiveness and successfulness. On the other hand, the compensation strategy is important to keep the personnel budget under the control and to manage the Jobs in the right salary. The compensation strategy distinguishes the organization on the Job market and builds the attractiveness of the company for the top talents.
They love to be hired by the desirable organization; they do not like to be hired by the average company offering the same conditions as any other average organization in the industry. Compensation often includes an employee"s base salary and additional benefits, such as health insurance, retirement plans and performance bonuses. Competitive Advantage and Compensation Strategy Today, the products are similar. It Is hard to differentiate the cars from the other car makers.
The employees are In the same condition as the consumers. They have the problem to distinguish the employers and they are not able to identify the excellent corporation, when it is not special from the rest. The competitive advantage is the essential part of the mix for the success. The company has to present Itself fervently, not just by the presentation, but it should distinguish itself by the unique approach toward its employees. The compensation strategy Is one of the most successful differentiators. He other organizations on the Job market, it brings the differentiation into the organization as well as the successful employees and top talents feel the success in their pockets. In addition, the effective compensation strategy makes people speak about their successes with their networks. It builds the extremely excellent competitive advantage among the competitors as the people feel, the organization ally values the success and it can pay the successful employees.
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The effective compensation strategy manages the personnel expenses of the organization, but it supports the performance management and differentiates the employees as the successful ones are not interested to search for a fresh Job opportunity. The good compensation strategy does not provoke employees to look for the web Job boards during the working hours, it makes them to spotlight on delivering the results as they can be highlighted and they experience the highlight in their salaries.
Furthermore, the successful compensation strategy gains the nominative advantage and can speed up the innovation processes and advance the performance management practices in the organization. Compensation Strategy Importance toward HRS Process The compensation strategy is not vital Just for the competitive advantage, but it supports the other HRS Processes and helps them to become highly efficient HRS Processes and being on the top in the industry (when measured and benchmark).
The compensation strategy has a strong power on the performance of the entire Human Resources, which is a good vehicle to manage the performance of Human Resources, but has to be managed carefully as it does not destroy the performance of the whole organization. Smart compensation strategy supports the HRS Processes and helps to bring the top talents from the Job market to the organization and helps to retain the best talents in the organization as they do not feel the need to find a new job opportunity elsewhere.
Recruitment and Compensation Strategy The effective Recruitment and Staffing cannot exist without the effective Compensation Strategy. The recruitment can be based on the excellent HRS Marketing Policies, but the HRS Recruiters have to be able to propose the competitive salary cages, which are competitive externally and fully aligned with the policies and the compensation strategy internally. The recruitment of the best talents from the Job market cannot be based on exceptions from the compensation policy.
The recruitment and staffing processes have to be supported and backed by the excellent compensation strategy as the HRS Recruiters can offer the competitive conditions to the right talents from the Job market and they are able to identify the key Job positions, where the compensation strategy allows being more aggressive against the pay market. 2 Offer letter and the compensation and benefits department should measure the number of failures in the Job offer acceptations.
It is the extremely important sign of the wrongly set compensation strategy, when the Job candidates do not accept the job offers made by the organization. Motivation and Compensation Strategy The salaries or bonuses are extremely important for the motivation of employees and managers. Generally, the motivation is not about the compensations, but the compensation should support the general motivation framework in the organization. Even the best managers in the world are not able to keep highly motivated teams, hen the compensation strategy is not in line with the Job market.
The employees usually know the common levels of salaries in the industry and when the organization is below the median or the average, it has to compensate the difference in other area. But, when the difference is too high, the compensation by a different motivation tool does not work and the employees start to feel depressed as they receive no equal value for their effort. Talent Development and Compensation Strategy The compensation strategy provides the key support to the talent management processes in the organization.
The talents have to be clearly supported by the insemination strategy as the talents usually expect higher salary increases than the average employees and the compensation strategy has to allow the limited freedom to managers to do so. The successful top talents management cannot survive without the adequate support from the compensation and benefits side. The talents have to feel the different approach of the organization and the compensation is extremely important in this.
The top talents cannot live on the promises for a long time. They have to see the real improvements and advances. They deliver, they expect the organization the same. The compensation specialists have to co-operate closely with the career advisors and career development specialist to introduce the right mix of the career opportunities and the compensation strategies for the top talents. 3 1. 2. Problem Definition APT Prudential Life Assurance has separated organizational structure between staff and sales representative.
The full-time staff career at prudential is divided into several department such as Claim, Corporate Marketing & Communications, Customer Care, Finance & Accounting, General Position, Human Resources, Information Technology, Legal & Compliance, Life Administration, Marketing, Agency Sales Support, Operation Solutions Centre, Shari & Product Development, and Underwriting. For all positions above, applicants must have graduated from reputable universities with minimum GAP 3. 00 and good command of English. The candidates can register only by sending a complete resume in English, together with recent photograph to career@prudential. O. Id. Dynamic sales representative (insurance advisers or agent). The candidates should thrive on challenges, like to do things differently and have a passion to excel. In addition, as an independent adviser who provides valuable financial advice, the hoses applicants will promote and cross-sell the company's full range of consumer financial products to meet their customers' needs and objectives. They will be trained to perform a financial need analysis to determine the financial standing of their clients and based on that, provide the best solution for them.
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