Strategic Compensation: A Human Resource Management Approach

Abstract

The measure of a company’s success is as much a function of the way it manages its employ ees as it is a function of its structures and financial resources. Compensating employees represents a critical human resource management practice: Without strategic compensation systems, companies cannot attract and retain the best-qualified employees. Spending more than is necessary to attract and retain top talent adds costs unnecessarily to companies in search of competitive advantage. The purpose of this book is to provide knowledge of the art and science of compensation practice and its role in promoting companies’ competitive advantage. Students will be best pre pared to assume the roles of competent compensation professionals if they possess a grounded understanding of compensation practices and the environments in which business professionals plan, implement, and evaluate compensation systems. Thus, we examine the context of compen sation practice, the criteria used to compensate employees, compensation system design issues, employee benefits, challenges of compensating key strategic employee groups, pay and benefits around the world, and challenges facing compensation professionals.