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wvzzl31313

Business Finance

Description

What steps can a company take to align its compensation system with its general business strategy

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Explanation & Answer

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Quality compensation programs are required for a profitable business.

Steps that a company can take to align its compensation system with general business strategy are:

1. Incentive program for higher output

2. Higher wages than competitors.

3. Commission based rewards

4. Greater perquisites depending upon ones performance.

A premier compensation plan lets employees know they are valued. Consequently, most will work hard to achieve the company's goals - this benefits them, and the company, which in turn benefits the employees even more, and the company, and so on. 


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