Original Question: Discuss the various factors that influence a companys competitive strategies and compensation practices. Assess how a company can mitigate these factors using effective compensation practices. Respond to at least two of your fellow students postings.
Response 1 – .5 Page: Melissa Jackson –
There are various factors that influence a company’s competitive strategies and compensation practices, such as government regulations, the companys capital, supply and demand, and pay rate. The company must take those things into consideration when trying to hire and retain qualified employees that will meet or exceed the goals of the company. The company’s planning must assist with achieving the objectives and companies mission. The company will have to create a strategic plan that adheres to all state, local, and federal guidelines. By adhering to the government guidelines it allows employees to receive fair treatment and equal opportunities in the workplace. Adhering to government guidelines, the companies capital, and supply and demand will provide potential employees with fair standard practices that are followed in the selection process and competitive pay rates once they are hired. Consistent, innovative, and fair compensation practices are central to ensuring the success of both human resource strategies and overall company competitive strategies (Martocchio,2017).
If a company would like to mitigate the factors using effective compensation practices, consistent evaluations would need to be conducted. Periodically conducting an analysis of the market would allow the company to examine its objectives, employee performance, employee training, and compensation practices to make the necessary adjustments to stay competitive. A company’s pay system and compensation practices have become vital to employees, especially since the covid-19 pandemic. The pandemic has made many businesses Implement new health and safety policies, prove training, and make changes to their selection process, such as requiring employees to be vaccinated. Creating compensation practices that entice potential employees and retain current employees is necessary for the company to be successful.
Response 2 – .5 Page: Wendy Phillips –
There are laws in place that protect both the employer and employee in terms of compensation. Based on compensation management, such laws can be categorized into four groups namely, income continuity, safety, and work hours; pay discrimination, accommodating disabilities and family needs, and prevailing wage laws (Martocchio, 2017). The goals of employers, employees, and the government all influence a companys competitive strategies. Workers want to have a good income, health insurance and work under safe conditions. Employers want to make high margins and high returns on investments. When an employer gives good benefits and pays the employees well, this will have a positive impact on the organization in the long term. The government wants social goods with little involvement in the private sector.
Most companies tend to have a certain base pay for various jobs and potential increases for a certain skill level, job performance, and employee potential. Compensation from employers is among the main reasons many new applicants seek employment with specific companies. Competitive strategies are mostly based on what the competition is currently doing or intend to do in the future for the organization. Hence, pay-performance systems should be evaluated and modified when necessary. Employees want to have salary increases and get benefits based on performance on a regular basis, which is the role of the organization.
