Journal Article Research and Analysis Essay Example | Topics and Well Written Essays - 750 words

Journal Article Research and Analysis - act ExampleHeneman (2002), states that for human imaginativenesss honorarium is the prime source that enables companies to attract and retain talents, and so the compensation charge is a critical comp hotshotnt of human resource caution and of the entire organization.The importance of compensable factors, such(prenominal) as knowledge required by position and skills requirements, problem solving and accountability (Jones, Steffy & Bray, 1991) are bring down by the complex decisions that executives should make in order to positively impact companys enlisting and retention efforts and to reach organizational goals. Therefore, choosing a compensation strategy is one of the main human resource decisions made by any organization. The development of such strategy is highly important because it promotes employee recruitment, retention, motivation and corking performance thanks to the set of offerings that a company makes. However, not every org anization compensates its employees or uses compensation strategically. While wages and benefits policies are used without strategical intentions, compensations instead are aimed to improve morale, reduce employees employee turnover and help achieve targets within an establishment (Das & Baruah, 2013). However, as stated by Hong, Hao, Kumar, Ramendran and Kadiresan (2012), compensation is not one of the main factors that impact the employees turnover despite being a critical factor in cut down managerial turnover. When determining the compensable factors, the developers should consider such policy choices as internal alignment, external competitiveness, employee contributions and the management of the pay system. As internal alignment deals with the pay relationships within the organization, it dictates the level of skills and knowledge that are needed, thus the compensation and benefits programs are granted for the special set of such skills. As companies are facing prankish com petitiveness, they should offer applicants such compensation packages that