Compensation Strategies free essay sample

This paper analyzes and discusses compensation strategies, how they affect workers and why they are necessary in the IT industry. The following paper examines the way in which the basic use of incentives and compensation strategies are critical components to create an environment where the employees not only feel secure about their jobs, but are also committed and motivated to the organization. The writer discusses how employees must contribute to the fullest to achieve the organizations goals in todays changing world. This paper discusses how business environment managers have to do more than just providing employees with tactical targets, such as bonus for selling or completing certain products or projects. Compensation is without a doubt a major management objective in any organization to include in its workforce quality and skilled employees that would increase productivity and keep up the pace with changing technology. An organization stresses a lot of importance on compensation strategy because of the changing face of technology and to keep up with the speed organizations need skilled and expert employees and to have the best of them it needs to develop some sort of strategy to attract the workers. We will write a custom essay sample on Compensation Strategies or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The major factors influencing the compensation are essential value of the job, internal equities, and market correction through inflation and external equities. In the IT industry today there is a desperate shortage of skills particularly in the software industry; with severe competition and shortage in the industry the old conventional methods of attracting employees have been torn apart. As economies fluctuate, the software industry in particular have affected and now more than ever before companies needs to react to a changing marketplace by continually evaluating corporate goals and then re-aligning employees.