Right Person for the Wrong Job! How Competency Mapping Can Solve the “Bad Fit” Problem
Why Competency Mapping Can Solve the Perennial Right Person for the Wrong Job Problem We often hear the saying, Right Person for the Wrong Job, being used to refer to people who are either too qualified or too competent for the job that they are assigned to. Conversely, HR (Human Resources) and Line Managers also […]
Why Organizations Must Admit Systemic Mistakes and Failures and Stand Up for their Employees ?
Employees are Also Important Stakeholders Contemporary organizations have to be accountable to a diverse range of stakeholders including customers, investors, regulators, and social activists as well as the wider civil society. However, what are missing in this list are the employees who are as important as the other stakeholders. Indeed, while it is fashionable for […]
Employment Counselling and Career Development
Many firms across the globe have realized the necessity of employment counselling. One of the reasons is to create a quality workforce along with desired skills and competencies in order to utilize them to maximum possible extent. In today’s highly turbulent and ever-changing environment, keeping a pace with the latest developments and surviving the cut […]
Scope of Human Resource Management
Human resources are undoubtedly the key resources in an organization, the easiest and the most difficult to manage! The objectives of the HRM span right from the manpower needs assessment to management and retention of the same. To this effect Human resource management is responsible for effective designing and implementation of various policies, procedures and […]
How Human Resource Managers should Manage Ethical Issues and Ensure Compliance ?
Organizations function according to some norms and values as well as have characteristic organizational culture that is the product of the above elements. Compliance with ethical norms is an integral aspect of every employee’s work and organizations strive to ensure that policies are being followed, no norms are being violated, and above all, employees stick […]
Compensation system involves the total rewards that are given to the employees for the labour and services they provide to the organization. Compensation includes direct monetary benefits as well as indirect monetary benefits.
Wages and salaries form the direct financial benefits that an employee receives from his or her company. Besides, wages and salaries, bonuses and commissions also form a part of the direct monetary benefits. The indirect monetary benefits include paid absences and other leave benefits, retirement plans, employee insurance schemes, health plans, education benefits and other such benefits.
A well-defined and balanced compensation system gives the organization an advantage of maintaining internal as well as external equity. It is a powerful tool for attracting employees, motivating them to work in achieving the strategic organizational goals, and retaining them in the long run. An HR Consulting Firm can provide an in depth analysis and detailed report on the setting up of a balanced compensation system for the company.
An organization need to have a clear compensation philosophy which is in line with the strategic goals, objectives and culture of the organization. Based on the compensation philosophy of the company, the various components of compensation are designed and chalked down in detail.
The development of compensation philosophy includes the study of various aspects viz:
Compensation detailing comprises of identifying positions and setting up of wage or salary specifications against each of the position. Also, incentive packages and bonuses, if any, are clearly defined for each of the position while describing the compensation related details.
Compensation detailing may involve execution of following activities depending upon the requirements of the organization:
A compensation study carried out in an organization generally involves following important elements:
Depending upon the requirements of the company, the HR Consulting Firm may take up the necessary aspects required to be considered for development and/or improvement of the compensation system in the organization, thereby, strengthening the compensation system of the company by making it more equitable and attractive.
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Corporate Strategies to beat the Downturn: Cutting Slack and Layoffs
February 12, 2025
