Compensation Management of a Multinational Company
COMPENSATION MANAGEMENT Compensation is a key factor in attracting and keeping the best employees and ensuring that organization has the competitive edge in an increasingly competitive world. The Compensation Management component enables one to differentiate between one’s remuneration strategies and those of his competitors while still allowing flexibility, control and cost effectiveness. It provides a toolset for strategic remuneration planning that reflects organization culture and pay strategies, and it empowers line managers within a framework of flexible budget control. Compensation Management allows one to control bottom-line expenditures and offer competitive and motivating remuneration, be it fixed pay, variable pay, stock options, merit increases, or promotion – in other words, total compensation. In brief, it includes Create centralized and decentralized budgets Plan and administer compensation adjustments at the manager level Plan and administer compensation adjustments within budget Performing Job Pricing Define pay grades and salary structures to identify the internal value of jobs and positions in your organization Administer long-term incentives. FEATURES Compensation Management comprises the following components: Job Pricing This component uses to store and manipulate results from external job evaluation systems, and data from external marketing surveys. This data can be used as a starting point for building salary structures associating with jobs and positions in the organization. This component allows identifying the internal worth of jobs and positions in the organization. Budgeting This component is used to allocate monetary amounts or non-monetary amounts, for example, a number of shares, to a particular department, subsidiary, or plant within the organization. It can also be used as a control mechanism to make sure to stay within the budget amount allocated. Compensation Administration This component is used to plan and administer