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Structuring Alternatives to Escalating Pay

It is clear from the numerous articles on global pay and benefits that competition for talent is as vigorous as the pay and benefits. What could you offer as an alternative to escalating pay? Keep in mind that some consultants advocate for strong brand as a strategy to compensate talent. They will be able to attract and retain top people with appealing work environments, and salary and benefits packages that reflect the contemporary world of work. How will these dynamics affect the new global marketplace?

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*It is clear from the numerous articles on global pay and benefits that competition for talent is as vigorous as the pay and benefits. What could you offer as an alternative to escalating pay?

The issue of escalating pay scales is becoming more prevalent in today's organizations as budgets are being more tightly managed and resources more adequately accounted for. The traditional merit pay system that has prevailed for years in the United States has increasing challenges as more and more organizations are redesigning the traditional compensation systems that typically pay for amount of time in the job, i.e. annual 3% across the board, etc. with little consideration to other factors such as performance and other key factors. It is financially easier to administer the flat rate / across the board pay increase system as it takes away the work required to implement a pay for performance type of system that requires ratings and many other factors. In addition to antiquated pay structures, many companies are getting left behind by more creative means being implemented for employee retention. So, in order to successfully attract and retain the best talent on the market, we will offer a mixture of the following benefits as opposed to consistent escalating pay as the primary reward (Hamel, 2010).

First, to keep fixed costs down, we will remove the automatic pay escalation that occurs annually and will replace it with a specific pay ...

Solution Summary

In addition to antiquated pay structures, many companies are getting left behind by more creative means being implemented for employee retention. So, in order to successfully attract and retain the best talent on the market, we will offer a mixture of the following benefits as opposed to consistent escalating pay as the primary reward (Hamel, 2010).

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