Differentiate the compensation strategy

The right position on the pay market is a key success factor for the effective compensation and benefits. It is pretty simple, but it is definitely hard to find the right position on the pay market as the organization does not suffer from the excessive personnel costs and it is still able to find, hire and retain the best talents from the job market.

During the economic boom in the past years, we resigned on the differentiated compensation strategies as they are extremely difficult to implement. You have to reach a consensus among the top management and the top managers always see their own functions as the most important ones for the organization. The discussions are tough, long and lasting for several months before the approval of the differentiation in the compensation strategy is approved.

But today, you have to start the discussions about the differentiation of the compensation strategy as you can start to manage the personnel expenses and the performance management in the organization. The costs are extremely important again and the top talents have to feel, their salary level is different from the rest of the population in the organization.

You can read about the importance of the compensation strategy and why it is so important for the performance and results driven organization.

Wonderful HR Experience

Human Resources is wonderful piece of art in the business as it works with people and not just the boring numbers.

I will post some interesting (from my point of view) comments to my blog as I love, when people share some fun from time to time.