TOP REASONS TO INTEGRATE COMPENSATION PLANNING SYSTEMS

• OVERVIEW
• TRENDS
• CHALLENGES  
• KEY REASONS
• SURVEY FINDINGS
• CONCLUSION

 Variable pay programs have been an all-time high and a popular mode of compensation in businesses worldwide. These pay out plans, in simple terms are ‘ pay for performance’ schemes,  providing a few or the totality of the workforce compensation based on performance and efficiency. Variable pay proponents assert that providing tangible and lucrative rewards for effective performance and hard work has always served as an effective impediment to mediocre or uninspired ways of working.

Keeping in mind the growing need and popularity of the variable pay structure, the business compensation strategies have attributed largely to the ever-changing business trends. Rapidly changing technologies have shown to have a massive impact on the way Businesses are functioning in the 21st century. It comes as no surprise that these changes have also brought about a change to the job descriptions and a need for employees with flexible skill sets to man these positions. Simultaneously, business gurus pointed out that competitive conditions have increased leading to a growth in the movement towards employee empowerment, causing employers to find new and innovative ways to compensate them for their contribution to their respective enterprise.

Overview

• A structured Incentive plan has always given the employees a motto to strive for the best and provide a tangible acknowledgement of their hard work
• A robust and a rewarding compensation is one of the key factors which bound an employee to a Company.
• Employee retention and low attrition rates have proved to be great for employers who have managed to cultivate and form a compensation and benefits team that knows precisely what to bring to the table.
• From an employer's perspective, compensation is an issue encompassing both, affordability and employee motivation.