Human Resource Practices With Business Goals - 1363 Words

In today’s ever increasing competitive business environment, Human Resource practices with business outcomes in mind is a necessary first step in aligning business goals with employee motives, a well-rounded compensation plan precedes attainment of these business goals(Martocchio 3). As can be seen by this statement, compensation is a major concern for all players in the business world today. As a matter of fact, if a company fails to properly manage their compensation package they will find themselves being left behind by the competition. In particular, what exactly does being left behind in compensation and benefits mean? It stands that other companies will have an advantage in attracting high performers who can create an impact for†¦show more content†¦Concerning this highly important subject of fair and equal compensation to motivate employees, a fair and equitable compensation system should be free of bias which can only serve to increase profits for a company ve rse a substandard compensation package which can only result in undeniable failure of such a company. By the same token, this can serve to attract employees that can truly make a difference for the company and it’s bottom-line. What is more, a fair system can serve to add to the perceived distributed justice of that company. â€Å"Theories of distributive justice seek to specify what is meant by a just distribution of goods among members of society† (Internet Encyclopedia of Philosophy). Notably, if an employee witnesses lower level performer’s receiving higher compensation than their own. Than that employee is likely to grow resentment against the company and its compensation packages. Thus, this may cause a high performer to leave elsewhere where they will receive improved compensation. In particular, companies would want to avoid such resentment because it will lead to a less motivated workforce and talent pool. By the same token, if the employee is an especi ally high performer the chances of that employee leaving are even greater because he or she will value their pay to the amount of effort applied. Hence, if a company wants to retain and keep great performers then the company needs to attract employees that can make a difference through a fair