Final Paper Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and...

Running Head: HUMAN RESOURCE MANAGEMENT FINAL PAPER            1
HUMAN RESOURCE MANAGEMENT FINAL PAPER                    8
HUMAN RESOURCE MANAGEMENT FINAL PAPER
Table of Contents
Introduction    3
Effective Compensation and Benefit System Contributing to Organizational Effectiveness    3
Principle Components of Revised Compensation and Benefit System for Large-Scale Organization with a Recommendation for Each Component    5
Wages and Salaries    5
Bonuses    5
Pay Requirements at the Federal and State Levels    5
Incentives for the Long Term    6
Health-Care Coverage    6
Insurance for Life and/or Disability    6
A Retirement Strategy    6
Giving Breaks    7
Compensation for Other Reasons    7
Convincing Argument to the Already Skeptical Top Managers of this Organization to Increase their Compensation and Benefit Expenses    7
Compensation and Benefit System    9
Compensation and Benefit Philosophy    9
External and Internal Equity    10
External Equity    11
Equity within the Company    11
Conclusion    12
References    13
Introduction
The goal of this study is to learn more about how compensation affects employee performance and productivity, which leads to organizational effectiveness. The study looks into the relationship between pay and employee happiness, engagement, and productivity. Compensation was discovering to have a significant impact on organizational effectiveness. According to the findings of the study, in order to accomplish their strategies, they must be consistent.
Effective Compensation and Benefit System Contributing to Organizational Effectiveness
In today's world, a company must be ambitious in order to survive and prosper. Organizations attain their goals with the help of their employees. Human resources are the most valuable asset a business may have and are at the heart of its effectiveness. Employee compensation is, in reality, a critical component of company competitiveness. In order to attract and keep high-yielding personnel, an organization's compensation must be competitive (Adeoye & Omosanya, 2018).
Their organizations design and implementation of their reward system must be in order to focus on their employees’ care on the special behaviors, which are consistent with strategic goals. As explained by Achim, Mohsin and Ismail (2020), a compensation strategy that meets the needs of employees not only gives the company a competitive advantage, but it is also a key factor of employee happiness and current growth.
Rising competition, acquisitions or mergers, chaging markets and changing staff demographics are all causing changes in today's globalized society. As a result, it is critical for businesses to manage their competitive and benefits strategies in order to attract and retain qualified employees, increase in human capital returns and improve employee job satisfaction. Adeoye and Omosanya (2018) have described that organizations compensate employees for contributions that are compatible with company goals and compensation is a potent communicator of organizational goals. Humans are naturally motivated to work better when they believe they will be adequately compensated or rewarded for their efforts.
Employees are a company's most valuable asset. The productivity of an organization is determined by the performance of its employees. An organization must understand the many facets of pay as the driving force that motivates people and directs their behavior toward accomplishing corporate objectives in order to have a positive impact on their performance. Employees who are compensated fairly are more likely to work harder, improving their productivity and job effectiveness.
Employee productivity or performance is a mixture of work, ability, and an error margin that compensates for all uncontrolled aspects, at least from the employee's perspective. According to the Gebremeskel (2018), considering the employee's private information in relation to the employer, the employer must rely on performance measurements to determine the employee's effort. Performance measures are chosen based on the following criteria:
(a) Congruence with the corporate goal and
(b) Employee controllability.
As recommended by Achim, Mohsin and Ismail (2020), there is a strong link between remuneration and employee performance, according to research. The quality and quantity of organizational production are directly relate to the employees' ability, interest, and energy from a strategic and tactical standpoint. Employee performance has a direct bearing on the company's performance. If companies want to keep top workers, they must focus on compensation methods such as performance-based incentives.
The most common human resource method for evaluating and rewarding employees' efforts is performance-based pay. The single significant predictors of firm performance is performance-based compensation. Organizational monetary rewards, that satisfying conclusion performance might include both performance-based compensation and merit-based advancement, that pay and incentives have a direct impact on organizational performance.
Principle Components of Revised Compensation and Benefit System for Large-Scale Organization with a Recommendation for Each Component
Wages and Salaries
These are typically the most significant part of a pay package. This is understandable considering that they serve as benchmarks by which potential and current employees are measure. The wage should be set by the individual's skills and abilities, with future increases depending on the employee's value, actual quality, and commitment to the firm.
Bonuses
Employee bonuses are a common technique for employers to recognize and...