Discuss an organization's compensation challenges and industry competition.
Discuss an organization's compensation challenges and industry competition.
Compensation does not only mean providing a paycheck enhances the standard of living. The performance of an employee is considered as the basis for compensation in several organizations. Human resources department meets challenges in effective compensation management.
There has been a dispute that human resources budget allocations are very less because HR is not a revenue-producing department. A company has its human capital as the most essential resource. Therefore, human resources compensation specialists and HR department leaders have to work within a limited budget. Besides justifying budget increases needs proof of return on investment in the HR department. HR professionals make an effort to create competitive pay rates so that an organization can attract the right talent. But many nuances complicate the procedure. For instance, while hiring the head of software development the competition for talent may be a different set of companies then hiring an administrative assistant.
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