| With a labour market that is always tight, it is essential to have a balanced compensation policy. Your compensation policy might just be the reason for good people to stay or for even better people to leave to join the competition. Obviously, in most organizations a fair deal of the companies’ capital is spent on paying salaries, therefore it is important to manage your costs wisely. A balanced compensation policy is based on the company strategy and organizational targets and consists of fixed and variable components, in order to elicit employees’ best behaviour. Next to this, compensations should reflect the internal relations between positions. Finally, it is very important to negotiate compensation & benefits during (possible) mergers and takeovers. |
