The transparent compensation policy supports the high performance corporate culture organization as the employees understand, what behavior and performance levels are expected to be eligible for the specific compensation component and it drives the behavior and performance specifically the right way for the organization. It is extremely important, the employees and managers are not unsure about the compensation component and they understand clearly, what conditions are applied for the approval of the specific compensation component. The compensation policy has to be transparent and it has to provide just the only way of the interpretation. What is important in the compensation policy? The compensation policy has to be set the smart way as it avoids the potential work-around and abuse.
Gnc employee handbook pdf how to#
The compensation policy drives the effort and performance of employees as the employees will find the smart and easiest way how to achieve the highest possible income with the smallest possible individual performance. The compensation policy is the main tool to find out the details about the compensation components and the way, how to achieve the highest total cash. Each employee is interested in the structure of the salary and the potential total cash achievable in the organization. The compensation policy belongs to most read and discussed internal policies of the organization as it drives the salaries of the individual employees. The compensation policy provides the basic explanation of the compensation component, how it is calculated, who is eligible for the usage and the approval procedure. The compensation policy describes the details of the compensation components in the organization, how they are used and the conditions for the employees as the compensation component can be applied in their specific situation.Įach organization uses many compensation components and they have to be described.
As the compensation strategy sets the high level compensation goals of the organization, the compensation policy describes the details of the individual compensation components, their behavior and their role in the compensation scheme of the organization. The compensation policy is the basic document, which drives the detail of the compensation practices in the organization.
0 kommentar(er)
