Task 3 Compensation, Strategic & Practical Approaches

INSTRUCTIONS:

1) Review the following materials:

https://www.lynda.com/Business-Skills-tutorials/Strategic-Human-Resources/434461-2.html

https://smallbusiness.chron.com/strategic-plan-employee-compensation-benefits-15613.html

https://www.forbes.com/sites/robinferracone/2018/12/21/dare-to-be-different-strategic-compensation-plans/?sh=3eb03d6601a8

2) Please respond to the following:

a) What is strategic compensation?

b) What are the three options for designing compensation strategically?

c) Which option do you believe is most effective? Why?

IMPORTANT – REQUIREMENTS:

Use of course materials and/or outside sources to support the conclusions set in the paper
12-point Times New Roman Font and double-spaced
APA in-text citations and reference list required.

SAMPLE SOLUTION

Strategic compensation
Strategic compensation refers to the human resource function of bringing about optimum growth in employee performance through suitable compensation plans (Larkin, 2019). It is aimed at orienting the behavior of employees and their performance to align with the objectives of the company and its goals. The objectives of a strategic compensation plan are to attract, retain and motivate talented employees and to maximize return on investment (Rubel & Kee, 2015). Designing strategic compensation entails several actions such as identification of employee objectives, setting of realistic budgets, plan implementation, and espousing creativity…