Main elements of compensation systems

reply to the students’ response and not the question  in 150 words minimum and provide 1 reference. Respond to the students response as though you are talking to them, use name

question

Are the three main elements of compensation systems—internal consistency, market competitiveness, and recognizing employee contributions—equally important, or do you believe that they differ in importance? If different, which do you believe is most important? Least important? Give your rationale.

students response

All of the elements of the compensation system are equally important.  You want all of your employees to feel that they are contributing to the organization in the work they are doing.  This value in the job motivates them to work harder for the organization.  When looking at the market for compensation, an organization wants to ensure that they are able to retain those people that they have already invested in  (Martocchio, J. (2017) .  Another piece is to ensure that we are recognizing the employee appropriately for the job they are doing for the organization.  If they feel their contributions to the organization’s success are not valued they will go somewhere else where it is valued.  This will start a cycle of constant turnover and turmoil in an organization.

After working in organizations that didn’t value the knowledge, skills, and ability that it’s employees bring to the table and only look at a fixed rank structure, this hits close to home.  Some of our enlisted militaries have as much as or more education than our officers and they have years of job experience.  When we don’t value what they have to offer the organization we are selling ourselves short and not capitalizing on our resources.

Martocchio, J. (2017). Strategic Compensation: A human resource management approach (9th ed.). Upper Saddle River, NJ: Pearson.