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1. Compensation Management
(Original Content Only) (350 words per reply) (APA citations) (in-text citations are a must)
(At least 2 scholarly sources, and 1 integrated Bible verse)
(Any sources cited must be peer-reviewed and have been published within the last 5 years)
Tristan O’Grady
Manage Discussion Entry
When it comes to determining what is most important in regards to competitive advantages for peoples benefits and compensation, I feel it is essential to consider what both internal consistency and market competitiveness can be recalled as meaning in measures. Internal consistency “clearly defines the relative value of each job among all jobs within a company. This ordered set of jobs represents the job structure or hierarchy. Companies rely on a simple, yet fundamental, principle for building internally consistent compensation systems” (Martocchio, 2019, p. 11). Market competitiveness “play a significant role in attracting and retaining the most qualified employees. Compensation professionals build market-competitive compensation systems based on the results of compensation surveys” (Martocchio, 2019, p. 13). Therefore, in considering the two first hand, I feel market competitiveness is most important in considering a company’s competitive advantage. In today’s time, if you correlate accordingly compensation and benefits are becoming the most common factors of withholding a job position not the rates of retainment, position promotions, and how the structure is formed and completed with payment, but that it is given and granted accordingly to what was stated in the recruitment process.
Market Competitiveness aligns with the companies advantage as if you are able to keep up with the market then you hold the ability and data proof of retaining current staff, whom are experienced and well versed within your organization. Though offering what the market has to offer to new recruitment candidates does not take the opportunities from within your organization with current staff outweighing the competitors through internal improvement and market competitiveness being met. As a result, your internal consistency is crafted as current employees feel no need to leave or bargain with other external competitors as the same stipulation and available compensations and benefits are being met or exceeded internally. Therefore, if you overshadow market competitiveness and sole focus on internal consistency you cannot create a market competitive approach/strategy as it is internal competitiveness with the ownership and current staff no foreshadow on external companies and their strategies and approaches (Martocchio, 2019).
Moreover, to be both internally consistent and create market competitiveness there are essential steps that can be taken such as suggested in the course text on page 156: “Conducting strategic analyses, Assessing competitors’ pay practices with compensation surveys, Integrating the internal job structure with external market pay rates, and Determining compensation policies” (Martocchio, 2019). These steps were taken in one particular circumstance researched in a newly developed Vietnamese version of the Kessler 6 (K6) scale among hospital nurses in Hanoi, Vietnam. Nurses there were given a survey “including the Vietnamese K6, other scales (DASS21, health-related QOL, self-rated health, and psychosocial work environment), and questions about demographic variables. Internal consistency reliability (Cronbach’s alpha coefficient) was calculated.”. The results found that the Vietnamese self-report version of the K6 showed high level of internal consistency reliability and supported a unidimensional factor structure. Yet, in evaluating and comparing to other approaches and findings in other countries with similar surveys such as in China and 14 others the need to assist and benefit the nurses through mental health assistance, coping strategies, and services was to be a goal internally and providing in competitive recruitment means (Kawakami, 2020).
However, when considering challenges to these steps in aligning market competitiveness and internal consistency strategic analysis can be static and outdated or too broad and not specific based. Assessing competitions pay practices can be essential yet hard to compete with in current financial standing within an organization and supply for multiple candidates with the consideration of internal experienced employees as well. In times considering compensation policies may not be eligible in regards to state and federal expectations. Other times there are disagreements over intentional or unintentional compliances with benefits. Retentions and extensions also can attract legal fees (Martocchio, 2019).
Overall, “competitiveness is a multidimensional construct, related to a number of external and internal company factors”. Many studies through research and findings such as “Global Competitiveness Project on SMEs’ and 784 firms” showed that “there is a higher chance of the application of compensation incentives in cases when the employees possess a more substantial tacit knowledge and formal and informal relationship networks. It is also positively impacted by the higher level of intra-company manifestation of knowledge”(Balogh, 2021). Therefore, a company can create compensation that is internal consistent and meets market competition as long as there is a plan and consideration of trends and needs within and outside of the company. Jesus said, in regards to consistency “Abide in Me, and I in you. As the branch cannot bear fruit of itself, unless it abides in the vine, neither can you, unless you abide in Me” John 15:4 (Holy, 2014). While where there is competition Philippines 2: 3-4 states “Do nothing from selfish ambition or conceit, but in humility count others more significant than yourselves. Let each of you look not only to his own interests, but also to the interests of others” (Holy, 2014).
References:
Balogh, G., Sipos, N., & Rideg, A. (2021). An empirical study of the internal factors influencing the application of compensation incentives in SMEs.Competitiveness Review, 31(3), 542-570.
https://doi.org/10.1108/CR-01-2020-0016Links to an external site.
2. Compensation Management
(Original Content Only) (350 words per reply) (APA citations) (in-text citations are a must)
(At least 2 scholarly sources, and 1 integrated Bible verse)(Any sources cited must be peer-reviewed and have been published within the last 5 years)
Zachary Wagner
Manage Discussion Entry
A Company’s Competitive Advantage
A company’s competitive advantage will consist of internal consistency and market competitiveness. In the writer’s opinion, while both are essential, internal consistency may benefit long-term employee retention as employees desire fairness and equity. Morand et al. (2019) encourage companies to formulate a pay scale based on how the employees perceive the fairness of their pay versus others’ pay. Making decisions and promoting harmony in the work environment allows employees to feel that companies care about all employees. Martocchio (2020) discusses how companies should organize their job positions with precise descriptions and qualifications necessary to complete the job tasks. Technical jobs requiring specific qualifications or training would pay more than general jobs. Employees may look around to see the pay scale of other employees and could become disgruntled if their pay scale does not match other workers. Moshabi et al. (2024) found evidence in their study of how employee retention and organizational commitment directly correlate to the employee’s perception of pay consistency for jobs requiring higher education or qualifications. The Bible discusses harmony as it admonishes, “Behold, how good and how pleasant it is for brethren to dwell together in unity!” (King James Bible, Psalm 133:1). Following Biblical principles allows companies to reap the benefits of its wisdom.
Martocchio (2020) discusses how market competitiveness includes benchmarking other companies’ compensation programs and desires to attract qualified personnel to their team. Companies must pay enough to attract qualified personnel but not overpay and spend unnecessary money to fill the necessary positions. Brahmana et al. (2020) point out that paying for top talent based on what others are paying may not be the best option to attract the incredibly talented, as often those employees look for more than compensation before choosing a job.
Developing Compensation Internally Consistent and Market Competitive
Companies can structure compensation that benefits both internally consistent and market competitive protocols, but the compensation program must be continuously updated and utilized fairly for all employees. Martocchio (2020) discusses job analysis and evaluation as integral components of a company’s compensation program. Keeler et al. (2022) encourage job analyses as companies should periodically assess the necessary positions as innovative technologies may save resources. Alidrisi (2021) argues that a job evaluation is necessary for companies to assess current job positions relative to job tasks and determine compensation based on how the employee effort brings value to the company.
Challenges
First, accurate and reliable market data may prove difficult when benchmarking competitors’ compensation programs if the information is not readily available. Brahmana et al. (2023) discuss how significant decisions involving competitors’ data aid in proper decision-making opportunities, but ensuring accuracy is necessary before expending resources. Secondly, managing employees and potential employee expectations are challenges to developing internally consistent and market-competitive compensation programs. Tasavori et al. (2021) mention that the results of their study show how adapting to new environmental conditions and transparent communication benefits companies as employee expectations are voiced during compensation conversations. Thirdly, cost constraints are an additional challenge as companies may not be able to afford the necessary compensational desires of employees. Costa et al. (2021) discuss how promises made need to fit into a company’s capabilities before committing to compensation discussions, as employees may become increasingly unhappy with companies not being able to fulfill the promise. Lastly, technical integration is a challenge as all companies work through new opportunities to utilize new data and artificial intelligence (AI) advancements. Vrontis et al. (2021) encourage companies to learn new ways to use AI and new data mining capabilities, as employees will need to learn to collaborate with it and utilize its benefits as competitors do.
