Strategic Remuneration
1.
Introduction:
Numerous
influences, both good and bad, have led to dynamic developments within the
remuneration discipline, as well as other aspects of conducting business.
A
number of philosophies and strategies have been applied in businesses in order
to become a "world player", or perhaps even in some cases, just to
ensure the survival of the business.
Historically
these have included downsizing, flattening and re-organising, but the most
recent, and also perhaps the most successful, has been
"re-engineering", which many large organisations have implemented
with some success.
I
say "some success" not because re-engineering has failed, but because
it has been determined that re-engineering that does not reduce costs and
increase performance, productivity and output, adds no value to the
organisation or its employees.
Attaining
acceptable levels of productivity has long been a problem, and in recent times,
the focus has been on methods to encourage performance and productivity by means
of compensation.
Previously
this thinking was taboo. "Why pay an employee more for something they are
paid to do anyway?” It is necessary to revisit this stance, as performance
based compensation offers many benefits for both the employee and the organisation,
and has been applied successfully in many organisations.
