Compensation Model For A Business: philosophy to Fortune 500 company

Compensation Model for a Business [Student’s Name] Institutional Affiliation(s) Compensation Model for a Business A compensation philosophy as illustrated by Aronoff, McClure and Ward (2011) is generally a presentation statement that documents an organization prevailing position about the operative staff reimbursement. It essentially illustrates the reason behind the employee pay and develops a paradigm for uniformity where the managers and proprietors can benefit from being apparent about their compensation philosophy as well as having an approved waging policy (Aronoff, McClure & Ward, 2011). The human resources in association with the administrative group are the main departments that are involved in the development of the compensation philosophies, the philosophies developed are based on numerous factors including the organization’s financial position, which is a critical factor, which helps to assess the organization’s position on the market. Other factors include the organizational size and its commercial objectives, the waging and remuneration survey data and the level of difficulty in looking for competent ability skills based on the economy. The compensation philosophy requires periodic review and modification according to the prevailing trend of economy as well as the factors affecting the business in the organization. The periodic reviews will assist in informing about the various modifications of the compensation policy, which are influenced by the chain of economic events. For instance, the market environments may make it challenging to look for a competent skill of a predominant field of operation and the proprietors or managers may necessitate offering a superior remuneration for the candidates (Milkovich, 1989). In case the managers prevailing compensation philosophy do not upkeep their payment worth, then the business may require adjusting its viewpoint to meet its contemporary requirement. A properly designed compensation philosophy upholds a company’s premeditated strategy and inspirations, its economical viewpoint, the organization’s operational goals and the recompense and total remuneration approaches. Fortune 500 Organization’s Compensation Philosophy The viewpoint behind Fortune 500 organization compensation program is to develop a recompense program that supports the organization’s standards and mission. We consider our compensation strategy is aimed to upkeep, strengthen and support the organization’s values, functions and financial requirements, and the commercial plan with an objective of developing and gaining a profitable income. The Fortune 500 organization compensation program is intended to interest, inspire and preserve the experienced proficient and skilled workforce personnel who play an effort in accomplishing the organization’s success. The organization strives to offer ...