Benefits And Benefits Of Compensation

913 Words Jul 18th, 2016 4 Pages
Compensation is how a company decides what is important to meet their company’s goals. There are three components when it comes to compensation. Direct, indirect, and nonfinancial are the three ways of letting the employees know the company’s values, while still letting the employees feel important. When many employees feel like they are part of the process of making the company a success, they are more likely to work harder. Companies need to be more strategic when it comes to setting up the operations of the company and the benefits they offer to their employees. The company will be more successful if they meet their strategic goals and reward the employees for their hard work. Many companies have used different compensation philosophy when designing their business. Maersk was originally set up as a family orientated business, yet as the company grew globally they realized they needed to change their philosophy to a strategic plan. Maersk’s new compensation philosophy focused more on the needs of the company and also the employees’ performance. The company became more concerned with figuring out if the best worker was in the correct position to perform his or her job. Maersk industry wanted to make sure they had a diverse group of employees, so that if something went wrong they would have a variety of ideas to fix or solve a situation. Maersk was also concerned that when they took people in and trained them so successfully they would have a high turnover of employees if…
Open Document