Essay Example on Healthy Competition: Benefits, Types, & Customer Relationships

Introduction

Healthy competition is essential in any industry because it brings out a balance in resource allocation and utilization, and it helps abscond cases of monopolies. The customers get goods and services that are of high quality as every firm works hard to win them. It is worth noting that a good customer relationship is a crucial enabler to a firm's growth. There exist different types of competition between different firms in the market or any given industry. Different economists base their analysis on the various aspects of competition to provide a clear view of the subject in different types of industries. It is worth noting that a compensation pay system is one significant competitive way that gets compared to the payment system of the entire market or industry that a particular firm is in operating. The principal aim of this essay is to bring out an evaluation of the market competitiveness concept while considering the competitive pay at the market that gets affected by the inadequacy of resources, especially the financial ones. The paper also aims at suggesting different approaches for the firms that experience inadequate financial resources challenge. At the end of the paper, there is a suggestion of the appropriate steps that need to be considered to reduce the impact when incorporating the other approaches that may see the firms succeed at greater extents after their identification.

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Market Competitiveness

Martocchio(2017) suggests that the pay system at the market competitiveness level refers to the policies developed by different companies, which are in line with the competitive advantage imperative. The pay systems also determine the ability of the companies to hire and retain qualified employees in different departments. Different firms shall always come seeking to employ qualified and experienced employees of other firms. Therefore, the retention capability determines whether a particular firm shall have a competitive advantage over the other firms. Four significant blocks help determine the payment systems in any competitive market. The blocks include the pay policies that dictate the way compensations should be done. These compensation surveys help collect data and evaluate compensation, strategic analysis, and the integration of the job structure.

Martocchio says that the strategic analysis aspect takes into account the examination of the firm's internal and external factors that concern the market. The economic analysts need to understand that the external factors include the firm's profiles that are visible to the public, the information about the competitors, and the prospects that involve the future growth of the company (Martocchio, 2017). On the other hand, the internal factors include the level of the financial abilities and conditions of the firm. The same scholar suggests that the compensation surveys have a significant focus on the wages and salary practices of the firm's competitors. Employees tend to look for better salaries and the right working conditions. The expectation is that a competitor who pays the employees a higher wage rate is likely to attract the employees from the other firms. The surveys target the employee benefits as it is the primary aspect that all the employers consider. The significance of the surveys is that they present a view that is realistic about the competitors' policies and pays practices. The surveys also identify the integration of both the external pay rates and the internal structures of jobs.

According to Martocchio, the combination is a good reflection of the external job evaluation in the market and the internal job evaluation mechanisms, which are essential as they give a base for the reliance of regression analysis in the integration achievement. The pay policies of any firm should be in line with its competitive strategies and the standing strategies. It goes without question that there has to be relevance and balance amongst some aspects, including the costs, the attraction, hiring, and the retention of the most competent, experienced, and skilled employees. It may force a company to adopt creative means regarding the competitive pay system in a case where the limited financial resources are unable to match the system demand. Creativity is the only way through which it can attract, maintain, and keep its skilled and talented employees.

Alternative Approaches

Different companies can introduce different approaches that shall see them stay within the competitive pay system at the market. The first approach is through offering non-monetary rewards that have the likelihood of making the employees stay at the company. The benefits are also likely to attract new talented employees. The benefits and rewards should have a schedule that has excellent flexibility that shall oversee the appreciation, recognition, and enhancement of the employee skills through training sessions.

Heathfield says that flexible scheduling is an aspect that many employees put into mind as it gives room for the employees to carry on their duties for extra hours. The extra hours are different from the usual work hours that their job description stipulates. A different piece of work by the same scholar suggests that flexible scheduling has the capability of increasing the commitment, engagement, and morale of the employees (Heathfield, 2016). The reduction of the tiredness levels of the employees, turnover rates, and absenteeism are also significant factors that undergo a significant decline (Heathfield, 2017). The extension in the operating hours of the firm may be a result of the flexibility aspect, which may increase the profit levels of the company.

Cross-training helps in improving the motivation and morale levels of the employees because the company makes significant investments in the career growth of the employees (Right Staff, 2015). Through the acquisition of new skills, the company can manage them well as they can perform any duties assigned to them. The cross-training feature can also play a significant role in the reduction of the company costs through the utilization of internal talent. It also helps in saving on productivity in cases where the employees are either on vacation or are absent.

There are appreciation and recognition of the employees regarding their performance, the level of motivation, satisfaction, and morale increase, which in return leads to an upsurge in the productivity levels of the firm. Harrison suggests that the response of the employee to recognition can only get reflected through their high quality and excellent work (Harrison, 2013). The rewards also help in giving direct feedback to the management, which oversees the collaboration and teamwork amongst employees leading to an increase in their retention likelihood. It also reduces the aspects of turnover, tardiness, and absenteeism.

Steps to Alternative Approaches

It is a known fact that communication is an essential aspect of the workplace. The employees can also take up the alternative approaches in cases where they have clear communication from the employers. It is good to let the employers know about financial resources availability and the intention to reward them for their work. This shall increase their motivation and enable them to work extra hard and smart. The communication has to follow a hierarchy from the top management to the junior employees.

The second step involves minimizing impacts when adopting the approaches by being creative on the employee approach regarding their benefits and rewards. There can be a special lunch for them, which will see them easily transition to the addition of other approaches. Finally, the management has to show the importance of alternative approaches to workers. An instance is where an employee having classes can be able to be at the workplace for long because of the flexibility venture.

References

Harrison, K. (2013). Why employee recognition is so important. Cutting Edge. Retrieved from https://cuttingedgepr.com/articles/emprecog_so_important_asp

Heathfield, S.A. (2016, November 10). Advantages and disadvantages of flexible work schedules. The Balance. Retrieved from https://www.thebalance.com/advantages-and-disadvantages-of-flexibke-work-schedules-1917964

Heathfield, S.A. (2017, July 7). Top 10 ways of showing appreciation to employees. The Balance. Retrieved from https://www.thebalance.com/top-ways-to-show-appreciation-to-employees-1916807

Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th Edition). Hoboken, New Jersey: A Pearson Education, Inc.

The Right Staff. (2013). Six benefits of cross-training employees. Retrieved from https://www.therightstaff.com/2015/02/20/six-benefits-of-cross-training-employees/