Cmpensating employees. U. Business & Marketing Essay

Compensating Employees
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Compensating Employees
Compensation Philosophy of Maersk
Currently, it is the objective of every company to compensate its employees appropriately to keep them motivated and productive at work. Maersk is a shipping company, with several lines of production, expertise employed, all working in different environments. The jobs they handle differ from one individual to another but follows certain philosophies. These philosophies are based on the risks at work like captains at stormy seas, time of entry and years of experience with the firm, skills and education, plus the competition to which an individual’s position is to the logistics business. According to Payscale (n.d), market influences in this structure of payment to employees vary, depending on the revenues a company generates in profits, the amount of work done, and the objectives a company has to retain some employees. Market variations in the shipping industry are dependent on global trade, and the number of companies taking part in it. If there are more investors like DHL willing to offer better remunerations, then the company has to reconsider its payment philosophies to remain in regular operations with its employees (BBC News, 2013).
Value of Salary Surveys to an Organization
Adhoc, obsolete, and bias compensation methods fail several companies in realizing a proper retention strategy to their employees. Chinnaiyah (2013) elaborates that most of them seek to work for more competitive institutions where there are better remunerations. To overcome this, institutions embark on salary surveys to find out how other companies in the same course of service providers pay their employees. The reviews analyze the markets, the job groups, the skills, years of experience, and conditions of work that employees are. The ...