COMMERCE 1E03 Study Guide - Final Guide: Flextime, Occupational Segregation, Job Sharing
11 Apr 2017
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Service organization with high employee costs are labour intensive. Manufacturing firms ask employees to take reduction in wages to make the firm more competitive. Competitive compensation and benefits program can accomplish several objectives: Attract the kinds of people the organization needs, and in sufficient numbers. Provide employees with the incentive to work efficiently and productively. Keep valued employees from going to competitors, or starting competing firms. Maintain a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce. Provide employees with some sense of financial security through fringe benefits such as insurance and retirement benefits. Many companies use hay system that compensates on job tiers, where each has a strict pay range. Skill based pay rewards the growth of both the individual and the team. Base pay is raised when team members learn and apply new skills.
