The ability of an organization to find qualified employees is affected by a number of economic

The role of a Human Resource department is ever changing in today’s volatile business environment. Over the years HR have become strong strategic partners within an organization by providing functions such as recruitment,

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Thus, employers must know how the compensation they offer for critical positions differs with compensation for similar positions at other organizations in the market. Therefore, if an organization is recognized to be a great place to work in terms of factors such as training, resources, technology, work environment, staffing, and scheduling, the organization may be able to pay less than its competitors do within an acceptable range. However, if competitors are viewed more favorably as an employer, on the other hand, the organization will need to use compensation as its strength. Although, any strategy based solely on compensation will not succeed in the long run because a successful strategy combines market-rate compensation and a work environment that is competitively distinguishing and unique (Gering & Conner,

As noted earlier, the labor market is very competitive because every employer wants the best staff at his or her disposal. In addition, competition in the market requires every organization to be a way ahead of the competition to ensure sustainability. Consequently, hiring is a preserve for the HRM. Notably, hiring does not entail advertising for job vacancies and waiting for the right candidates to apply and invite them for an interview.

Amongst reading the material presented in this chapter about the job market trends, I was able to determine that the job market is extremely dynamic and has a great rate of change depending on the company’s needs. These adjustments also affect salaries, if there is a high demand for a position where there is a shortage in qualified candidates the salaries and benefits will be higher. As new technologies grow, the need for employees in these areas do as well, people need to maintain their skills up to date and seek professional growth to be able to keep up with the requirements and challenges of this fast pacing changing job market. However, some of these changes in the job market are being caused by the rapid change in the workforce. Companies are having to adapt some of their philosophy and the way they view employees, because so much has changed in the way the workforce behaves. Let’s examine the

The economic climate surrounding a company can determine many things and can have financial implications as well as affecting the levels productivity. Economic growth can lead to a lack of employees available to fill positions because the labor market is saturated with jobs. A company will look to offer higher wages, more benefits and incentive programs to entice potential candidates and will invest in current employees with training and development to help retain the staff and promote succession planning throughout the company. A downturn in economic growth can have the opposite effect. Companies have a tendency to cut the workforce to maintain profit margins, thus applying extra pressure to the remaining employees, causing extra work loads, poor morale and a high

With the constant change in today’s business world, to have a competitive advantage makes it difficult for employers to attract and retain the most talented employees. Identifying the company’s compensation strategy ensures the organization offers the right pay and manages the pay increases to retain top talents. When we hear the word compensation we think about compensating an employee for their work performed, but there

Depending on the nature of the business, organizations will require various sets of talents (skill, knowledge and capabilities) that contribute towards the their growth and success. Markets in general have high supply of some talents and low of others. Based on the talent requirement of the organization and the market in which it operates, it will have to alter its approach towards attracting the required talent. This may involve adjusting factors like remuneration, long & short-term benefits, career prospects, trainings, etc.

According to the case study, managers are undoubtedly conscious of the convincing indication that authorizes that companies stand to increase when they distribute their profits with personnel. Furthermore, the article demonstrates how managers are mindful of the disagreement that to interest favorably experienced workers, companies must offer bonuses like higher salaries and stock options. This study detonates the misunderstanding that fiscal incentives function too inversely across the corporate scale to be exchangeable to low-level employees. Through widespread examination of asset

To obtain the desired education degree for the human resource career field, human resource management students must learn and complete various subjects during the education program as they would need to employ various skills in their practical life. Candidates studying the Human Resource Management discipline gain an insight into courses like Employee Compensation Management, Perspectives of Management Labor welfare, and Organizational Behavior (R. Palaciso, personal interview, 18 July 2010). The Employee Compensation Management course provides an analysis of the techniques and principles used to develop and instigate direct and indirect compensation programs and reward systems that are cost-effective. This course teaches students, as human resource, to attain and draw a highly

The success of companies in today's market place is a process that involves the way business practitioners manage its workers and the financial resources and structures. The management of employees, structures, and financial resources includes the development and establishment of effective compensation strategy. Actually, the lack of a sound compensation system has negative impacts on the company's ability to recruit and retain competent and best-qualified employees. Consequently, compensating workers represents an important practice of a company's human resource management (Martocchio, 2013). Wal-Mart is not only a cultural but also a business phenomenon that operates in a competitive environment that is very unique. The company has grown steadily since its inception to an extent that it has become the number one ranked firm on Fortune 500 for four consecutive years. The success of the company is attributed to sound business practices and strategies throughout the years. Currently, the firm has over 1.3 million employees in America, making it the largest employer in the United States. In addition to being the biggest corporation worldwide, Wal-Mart's ability to attract and retain qualified employees is based on its compensation strategy.

The topic I chose to research and discuss is the topic of recruiting and retaining the best employees. I chose this subject because I felt it was important for an employer trying to compete in this very competitive business environment, no matter what the business is, to be able not only hire the best and most qualified employees but retain them and keep them motivated. The ability to distinguish the difference between high performing employees and lower performing employees can be detrimental to a company’s success or failure. In retrospect, this goes back to recruiting and retaining the best employees while avoiding and being able to let go of those of a weaker caliber. Before an organization can thrive in recruitment and retention,

Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).

Employees are sourced from two streams; academic (undergraduate and graduate students) and experienced hires (working professionals with 1 or more years of experience). Employees hired as a part of the academic recruitment cycle are place into a “class” that represents a group of people hired at the same time and bounded to a limited range of incentives (salary and entitlements). Experienced hires base salaries are calculated based on the average industry salary for

One of the most crucial elements of a successful or productive organization is an effective employee selection process. The significance of this process emanates from the fact that how workers carry out their jobs plays a crucial role in determining the level and extent of success of an organization. Due to the significance of an employee selection process, organizations draw candidates for open positions from the labor market. Actually, top-performing or successful organizations draw candidates from approximately 60 percent of the labor market. This trend includes sourcing for passive candidates who would prefer to remain contented with their present job. Moreover, organizations will relatively low or poor performance draws candidates from nearly 40 percent of the labor market and active workforce. An example of a top-performing organization that draws candidates from the labor market is Wal-Mart. The labor market plays a crucial role in employee selection with regards to having a population with the necessary qualifications for working in various organizations.