As stated in part 1, this is an experience report from the author’s company where a more pragmatic, objective and transparent model is being used to determine compensation. For most skills having a sufficient number of jobs and job-seekers, a market mechanism becomes operational. Ruling market rates are the most impartial and objective way to determine compensation.
It’s more than obvious to all of us that compensation plays a major part in employees’ level of motivation. Well paid employees will try to do even better as they see their efforts getting rewarded. Employees treat customers, vendors, investors the way they are treated by the company. Well paid employees go out of their way to please the partners in your company’s progress. Poorly paid employees tend to be insensitive to the problems faced by customers, vendors, investors and even other employees.
Continue reading “There’s an Elephant in the Room – We can’t Ignore Employee Compensation! PART 1/2”