Describe The Compensation Philosophy Of Maersk And How The Market Influences This Philosophy

Maersk
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A compensation philosophy can simply be defined as the ways in which a company views its employees from an individual perspective. As such, each company has got its own compensation philosophy, distinct from the others. This is because each company has got its specific mission and vision, as well as objectives. This paper looks at the compensation philosophy at Maersk, one of the leading transport and logistics companies in the world.
Describe the compensation philosophy of Maersk and how the market influences this philosophy.
It is usually the duty of the human resource department, to come up with the compensation philosophy. Designation of a compensation philosophy usually depends on not only the policies, but also the amount of business being done by an organization. When it comes to its compensation philosophy, the company’s strategy is determined by its general business objectives, which are in turn dictated by the goals set aside by the management and stakeholders (Walker & Miller, 2010). In this case, Maersk’s compensation philosophy is based on performance. This means that the focus is on how the employees perform. The company however, focuses only on the employees, not the board of directors, since they get a fixed amount. The catch with this kind of compensation philosophy is that there is usually a tendency of it being affected by the prevailing market situation. Pay is therefore hugely influenced by the success of the market, since it speaks of the profits realized.
Determine the value salary surveys has on an organization.
A salary survey is important because it helps the organization to have an idea about the salary brackets needed for each employee. In such a manner, the company’s management is able to build emp...