Human resource management should have an effective compensation strategy to provide benefits and motivate their employees. Human resource management is the process of recruitment, selection, induction, training, development, and appraisal of employee performance. Moreover, it decides on the compensation and benefits of its employees. Also, it has the responsibility of maintaining proper relationships with employees and ensuring their safety. Not only is human resource management useful to an organization but also to the employees. It ensures the availability of a willing and competent workforce of an organization. It also influences the objectives and goals of an organization.
human resource management and effective compensation strategies
IMPORTANT OBJECTIVES OF HUMAN RESOURCE MANAGEMENT
Primarily, there are four important objectives of human resource management. They include organizational, functional, personal, and societal objectives. The organizational objectives ensure that the workforce of an organization achieves efficiency and effectiveness. Additionally, they guide the acquisition of the right person for the right job at the right time. Contrastingly, functional objectives ensure that the facilitation does not cost more than the benefit. Personal objectives are those that deal with employee acquisition, development, and utilization. They also ensure an effective compensation strategy to help maintain employees.
important objectives of human resource management
THE KEYS TO AN EFFECTIVE COMPENSATION STRATEGY
Budget allocation is essential in an effective compensation strategy. Furthermore, the strategy should include the approach to allocating compensation into salary and benefits. Also, it is important for human resource management to develop salary ranges for the workforce of an organization. The strategy should also perform routine audits to ensure that the salary ranges match the compensation trends currently in that particular industry. Moreover, benefits packages in addition to salary attract and retains employees. Additionally, the compensation strategy should contain an efficient performance management system to ensure that employees meet corporate objectives.
keys to an effective compensation strategy
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