Analysis of Compensation Philosophy Research Paper

Analysis of Compensation Philosophy - Research Paper ExampleThe policies and underlying philosophy governing the companys compensation program are intentional to accomplish the following objectives Maintain a compensation program that is equitable in a competitive marketplace. leave opportunities that integrate pay with the companys annual and long?term performance goals. Maintain an appropriate balance between base compensation and short and long-term inducement opportunities. Recognize and reward individual initiative and achievements. Provide a clear focus and measurement on key objectives with a meaningful link to rewards. acquire a performance-driven work culture that generates the companys growth Provide compensation and benefits levels within our companys financial ability to pay. Encourage force building by better linking career development, performance management, and rewards. Provide a non-discriminatory merit-based compensation program. At the same time, the compensa tion program of outdo Consulting Company is designed to attract, motivate and retain talented employees. This is evident through working towards the companys success, attracting and retaining the highest performers. According to Martocchio (2011), base pay is set by a egg job hierarchy. The author states that pay rewards should be obtained by merit or seniority, meeting specific goals or completing a specific project or as a result of acquiring new job skills or knowledge. That is why the author states that Excel Consulting strives to provide a competitive base salary that meets the market at the 50th percentile for fully proficient employees who meet expectations. Also, it is evident between the 60th and 75th percentile for employees who consistently perform higher up expectations and are highly proficient in their roles. New employees that do not meet expectations leave be paid below the 50th percentile print (Martocchio,2011). The competitiveness of employees base salaries provide be reviewed on an annual basis and adjustments made when market conditions and financial performance allows. The size of the adjustment will be based on the employees experience, performance, and contribution to Excel Consulting Companys performance as well as the employees salary within the marketplace. Also, Excel Consulting will use both annual incentives and long-term incentives to enhance its ability to achieve its mission and its employee compensation objectives. In this case, long-term incentives will be performance-based and will provide equity compensation at the 50th percentile when target goals are met with the potential for awards. However, it will be between the 60th and 75th percentile when long-term goals are exceeded. The payment of an incentive award to an employee will be subject to the employees achievement of pre-established targets. Excel consulting compensation programs will also look into internal equity by considering differences among employees in s kills, efforts, responsibilities and working conditions. This implies that visible effective commitment to the Excel consulting Company will also be rewarded. The company will also ensure that its compensation structure is linked to an effective performance management system (Daft et al, 2010).