Research Challenges Facing Compensation Professionals

Challenges Facing Compensation Professionals
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Challenges Facing Compensation Professionals
A shift in demographic patterns, rising wages in China, underemployment and the compensation-productivity gap have positive effects in the future compensation of employees. Employees will work in more specialized and decentralized corporations. Given the developments in employment and population trend rates, the United State workforce continues to escalate in size, but at a substantially slower rate compared to the previous years (The RAND Corporation, 2004). A shift in demographic patterns has greatly increased diversity in the labor market, which creates the need for organizations to develop compensation strategies that meet the expectations of the employees. The labor market in China has been characterized by low wages, hence the new trend of rising wages is likely to shape the country’s future compensation rates. Unemployment rates are rising across the world, due to increased number of qualified people and minimal new job opportunities in the market. As the world economy expands, employees believe that everyone should benefit from the expansion. However, despite the growth in the net productivity, the compensation-productivity gap has widened over the years. All these issues will shape the future compensation rats; however, the workforce demographic shi...