Understanding Compensation Strategies

Compensation Strategies
Compensation strategies employed by an organization determine to a great extent its level of success. Amazon is a company I am familiar with and am confident an adjustment of its compensation and benefits strategies can propel it to a greater height. In 2018, Amazon raised the hourly wage of its workers to a minimum of $15 but eliminated stock awards and monthly bonuses (Miller, 2018). While the changes increased the salaries of employees, a sense of ownership of the company was lost. A strategy I would recommend is to give employees the option of receiving the raised hourly wages or continuing with the previous plan that incorporated stock awards and monthly bonuses. Mello (2019) noted that modern employers are using holistic approaches that offer flexible benefits that meet employees' different needs and preferences. By giving employees a choice over the compensation they would prefer, the company would better address their needs. Furthermore, stock rewards can help employees feel part of the company, and this can help it meet its strategic goals.
Another strategy is improving the working environment. According to Stevens-Huffman (2012), in sur...