Chapter 7 Assignment Paper: Competitive Advantage

Competitive advantage
Name
Institutional Affiliation
The compensation practices utilized by an organization usually influence their competitive advantage. Market competitiveness is more important to a company. Market competitiveness refers to the mode of remuneration that works towards attracting and retaining qualified employees. Human resources are the most critical asset to any organization, and every organization strives to get the best for themselves (Richter, 2012, pp. 36-37). For a company to acquire and retain the best talents there is in the job market; they must be willing to pay the right remuneration to maintain them. Hence, employees in an organization receive compensation according to the work they perform.
Market competitiveness implements a mode of compensation to employees that are in line with payment systems practiced by other organizations at the same level. Thus, being in line with the present trend of payment makes...