The textbook defines three different organizational approaches to compensation p

Question

The textbook defines three different organizational approaches to compensation policies ( Pay Leaders, Market Rate, and Pay Followers). Pay Leaders are organizations that pay higher than competitors. Market Rate organization seek to pay about what other organizations in the area do for similar jobs. Pay Followers are organizations that seek to keep payroll as low as possible by paying the lowest weight as possible, off the minimum wage whenever possible. 1. Which policy do you feel will give you a Workforce most likely to ensure that you successfully meet your organisational goals. 2. Support your opinion what concepts from the internet or outside sources. 3. This support should include what you see at your organizational goals and how your choice helps you to reach your goals. If you use sources from the internet, please include a link so the rest of us can share what you found.

Explanation / Answer

1. The policy that will give me a workforce that is most likely to ensure that I successfully meet my organizational goals is the policy of being a ‘pay leader’. Being a pay leader will mean that my organization will have to pay higher wages and salaries than competing firms.

2.The policy of being a pay leader will allow me to attract talented and productive people. My company is a startup company that is foraying into the business of manufacturing and selling e-scooters. These e-scooters will be expensive than the normal scooters that run on fossil fuels but the overall costs (including costs of running and maintenance) will be considerably lower in the long run.

By being a pay leader my startup will be able to attract highly talented engineers and marketing professionals. The premise of my product is innovation and to up the innovation quotient I will have to employ top notch engineering professionals in my firm. These professionals will be willing to work for my startup only when the pay being offered to them is attractive and above the level of what other employers are paying. Similarly this policy will help me to attract the best marketing talent of the industry. (White, P. 2014)

3. My organizational goal is to establish a firm foothold in the scooters market in the future (overall scooter market) and to gain additional market share on a continuous and sustainable basis after establishing a presence in the market. To achieve this goal it is imperative for me to offer an innovative and state of the art product to the consumers. Also the marketing strategy has to be good and precise so that I will be able to focus on my target market effectively. All this is possible only if I have the right set of employees on my payroll. To attract the right set of employees for my startup I will have to be a pay leader.

Reference:

Doug, W. 2014. Employee compensation. Retrieved from https://www.entrepreneur.com/article/239823

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