AllBestEssays.com - All Best Essays, Term Papers and Book Report
Search

External Competitiveness Refers to the Pay Relationships Among Organizations Pay Relative to Its Competitors

Essay by   •  August 4, 2015  •  Article Review  •  490 Words (2 Pages)  •  1,273 Views

Essay Preview: External Competitiveness Refers to the Pay Relationships Among Organizations Pay Relative to Its Competitors

Report this essay
Page 1 of 2
  1.  External competitiveness refers to the pay relationships among organizations pay relative to its competitors.  I would advise the marketing manager of Northern Software to implement the lag-pay level policy.  I would recommend this pay strategy because they are a start-up company and may not be able to afford to pay a high compensation rate until business is established.

Lead Pay- Level Policy;

Pros:

*Higher pay
*Satisfaction in regards to pay
*Attract and retain employees
*Reduce vacancy
*Train faster
*Better quality employees

Cons:

*Less benefits
*Higher risk of losing job if the market is bad

Pay-with-Competition Policy;

Pros:

*Equal wage
*Equal chance to attract applicants
*Rates to competitors

Cons

*Less stand out applicants
*Minimal benefit

Lag Pay-Level Policy;

Pros:

*Higher future returns
*Increased employee commitment
*Teamwork
*Increased productivity
*Work/ Life balance

Cons:

*Lower pay (below market)
*High risk of being fired when market is bad

2.  Performance Driven Policy

Base Bay= 50%
Benefits= 15%
Stock Options= 25%
Bonuses= 10%

I would offer these forms of pay to compensate for the lower than average base pay.  The earning potential for the employee will increase having included benefits, stock options, and bonuses.

  1. The theories I used to support my recommendation are efficiency and compliance.  I used the theories, because efficiency increases by hiring better employees or motivating present employees to work smarter or harder.  

  1.  Additional information I would like to have to refine my recommendation would if any qualifications or a particular level of education is required.  This would help me to make sure I have set the base pay rate at an appropriate amount to attract and retain the talent.

 

  1. External competitiveness refers to the pay relationships among organizations pay relative to its competitors.  I would advise the marketing manager of Northern Software to implement the lag-pay level policy.  I would recommend this pay strategy because they are a start-up company and may not be able to afford to pay a high compensation rate until business is established.

Lead Pay- Level Policy;

Pros:

*Higher pay
*Satisfaction in regards to pay
*Attract and retain employees
*Reduce vacancy
*Train faster
*Better quality employees

Cons:

*Less benefits
*Higher risk of losing job if the market is bad

Pay-with-Competition Policy;

...

...

Download as:   txt (3.5 Kb)   pdf (66.5 Kb)   docx (5.9 Kb)  
Continue for 1 more page »
Only available on AllBestEssays.com