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Compensation Management- Pepsico

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Please provide assistance with preparing written material on PepsiCo; briefly describing its compensation strategy, best practices they are applying, and compensation-related challenges they are facing; analyzing how your company applies compensation practice to determine the positive or negative impact to the company and its stakeholders; examining the ways in which laws, labor unions, and market factors impact the company's compensation practices. Provide specific examples to support your response and evaluating the effectiveness of traditional bases for pay at the company you researched.

Provide at least 5 pages of material and at least three quality references.

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The expert examines the compensation management for Pepsico are. The response addresses the query posted in 1236 words with APA References.

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The response addresses the query posted in 1236 words with APA references.
//The role of the compensation system is constantly increasing in the present scenario as human beings are the key driving forces in contributing to the success of the business organizations. In this context, this paper highlights the role and application of various employee compensation practices that are provided to the employees of PepsiCo in the present scenario.//

Compensation Management
Compensation management practices refer to the effective tool or technique that acts as a motivating factor for the employees that help in boosting the overall performance of the workforce in the firms (Truss, Mankin & Kelliher, 2012). An ineffective compensation management system contributes to high employee dissatisfaction, an increase in grievances, the rate of absenteeism and poor job performance by the employees of the business organizations. In the present contemporary business environment, the compensation practices has become a major issue and supports equal wages to be paid to the individuals for the equal work done at the workplace.
(See diagram on Page 1 in attached file).

Compensation Strategy of PepsiCo
The compensation program of PepsiCo is being designed to provide the fixed income to the employees of the organization. The compensation strategy of PepsiCo is defined as follows:
1. Providing Base Salary: The salary of the employees of PepsiCo is reviewed on regular time period and benchmarking is done on the basis of similar positions in the competitive group organizations.
2. Annual Incentive Compensation: PepsiCo provides annual incentive compensation schemes to their employees on the basis of their annual performance rate. These performance-based compensation rewards are provided under the Internal Revenue Code System in the organization. In this context, if the employees achieve more than their set targets, then the top management of PepsiCo undertakes the decision to adopt a suitable compensation strategy in order to provide higher employee satisfaction (Lipman & Hall, 2008). They determine the exact amount of compensation on the basis of their financial result, strategic position and the overall performance.
3. Long-Term Incentive Compensation: The top authorities of PepsiCo ...

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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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