The Importance of Work Compensation Strategies for a Start-up Company

613 Words3 Pages
Software engineers directly affect the success of many start-up companies. They are facing a clean slate: A group of investors is about to create a new start-up, a specialty software company based in Laramie, Wyoming. These investors have hired a software engineer to help them determine the marketing manager's pay. External competitiveness comes from how an employer positions its pay to what competitors are paying. The policy regarding external competiveness has a twofold effect on objectives, which means it ensures that at the pay is sufficient to attract and retain employees and it can control labor costs. This is because the organization prices of products or services can remain competitive. Therefore, external competitiveness directly affects both efficiency and equity (Pay Model, 2007). However, this can also drain the equity out of the company so they must be careful of that as well. I would recommend direct deposit and bi-monthly as forms of pay so that the employees can get their pay with no hassles with three percent goes into a 401k as some competitors offer. The company should use compensation strategy, Competitive Pay Policy Alternative and Pay Level and Mix Decisions Efficiency, fairness and compliance strategies that include the following: "Straight Salary Plan This plan pays the employee a set salary (for exempt employees) or an hourly wage (for non-exempt employees) on a regular (weekly, bi-weekly or monthly) basis. Employee pros to this plan include
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