Goals of Compensation Proffessionals

Compensation professional promotes effective compensation system by following three main objectives:

         
      1. Internal consistency:

  Internal consistency plays a major role in analysis of the compensation for the    employees in the organization.
     This involves: 

      Job analysis: Method of collecting, analyzing and listing information for defining job. It involves contents of a job, needs of employees, occasionally working situations

                   Job evaluation:  Mostly salaries differ from employee to employee in an organization .compensation professionals must analyze the prioritized jobs which provides more value to the company in terms of profits and goodwill. This is done by comparing the all jobs in the organization.

             2.  Market competitiveness:

             Market competitiveness involves retaining skilled personnel to the organization. Compensation professional develop compensation system by

                         (a) Strategic alliances :Internal factors and external market force are considered when developing compensation system

·        Internal factors:

    - Company financial status

    - Functional abilities

    - Human resource capabilities

·       External market force:

    - Company profile

    - Competition

    - Foreign demand

    - Long term prospects of the industry

    - Labour market assessment

  

                           (b)Compensation surveys: Pay professionals first gather information about competition and then examines it carefully

      3.Identifying and recognizing individual:

                                In any organization, salaries are not equally given to the employees. It depends on their work, skill, educational qualification. Compensation professional make use of pay grades and pay ranges for designing a pay structure depending on the compensation factors and value