discussion

What are the three main goals of a Compensation Department? Is one goal more important than the others, why or why not?

I want you to answer to discuss and answer this question and to help you to do so I will upload a PowerPoint file helping you to answer this question.

Here is one of the classmates response to this question read it and try to connect his response to your answer and discussion.

Classmate response:

The three main goals of a Compensation Department are internal consistency, market competitiveness, and recognizing individual contributions. Internal consistency is the fairness of compensation based on the job evaluation and the job analysis. The Compensation department ensures that each employee has a clear definition of their position and that each employee is evaluated based on fair comparisons. Market competitiveness is the retaining of skilled employees in the organization.  When developing the compensation system internal factors, external factors and compensation surveys are used to gather information about the competition. Finally the compensation department’s goal is to recognize individual contributions. Pay grades and pay ranges are used to design a pay structure.

There is not one goal that is more important than the others. Each goal is important for the success of the compensation department. The Compensation Department must be consistent in order to be fair. The department also needs to have market competitiveness in order for the company to retain the best employees. And individual contributions must be compensated for to maintain fairness. If any of these goals are not met, employees will not want to continue working for the company.