Essay Sample on Organizations: Review Compensations & Offer Raises to Attract/Retain Best Workers

Paper Type:  Essay
Pages:  4
Wordcount:  828 Words
Date:  2023-03-27


Organizations should review specialist compensation regularly and choose if agent pay increments are defended. Notwithstanding whether raises are identical in all cases, a performance-based or non-performance-based system, a competitive remuneration package is essential to retain and attract the best workers. A significant piece of pulling in and holding the best representatives includes looking into the pay the administration is paying present workers and granting raises as the business and the market requests. While there is the same number of methods for deciding the measure of an increase as individuals are choosing it, the essential way to deal with determine the action of a raise is to give everyone a similar rate or dollar sum raise. One can also give workers various increases dependent on the value between base wages or execution, otherwise called a legitimacy framework. Like most things, each approach has its upsides and downsides.

Trust banner

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Advantages of a Merit-based Compensation System

This system is an acknowledgment for the workers who accomplish the most noteworthy profitability and results for the business. The organization I work for uses focal salary increases that are based in employees' performance. These increases are determined during the regular execution assessments done by the administration. This system of merit payment increases is the best because it sends an important message about how the organization needs to see laborers perform and what it needs to see them contribute. It additionally insists what the association most characteristics from workers. Making the extent of the available authenticity pay open empowers representatives to see where their extension falls in the authenticity pay ranges set up by the company's pay plan (Choi & Whitford, 2017). It is a not too bad strategy to reward the delegates that are advancing commendably. Authenticity pay can empower a business to isolate between the displays of high and low performing laborers and prize the introduction of the better specialists. This prize framework can help in support because no business needs to lose the affiliation's best employees.

Disadvantages of a Merit-based Compensation System

The primary issue with the point of convergence strategy for raising pay rates is the dependence on the executives to get execution surveys finished on schedule for each worker. It may take a little hand-holding from the human resource department the first time it is done. There are additionally correspondence issues with this pay framework. A couple of supervisors pass on better than others, and this suggests the suitability of authenticity pay every so often can change wildly, beginning with one division then onto the following subject to the correspondence capacities of executives. There are extra stresses over the inclination that are identified with this system. In various work environments, the estimation of a particular agent is passionate and, finally, constrained by an overseer. Without clear measurables, other viably could discuss the outcomes when authenticity pay is settled. Without a doubt, even in work environments where there are measurables, results can be tried.

Pros and Cons of a Non-merit Based Compensation System

Giving all representatives a similar raise may appear the most straightforward and least conflict-inciting strategy to utilize when allowing increases. Non-merit-based installment expands -helps enormously in the inspiration of representatives to make a superior showing. Unlike the legitimacy-based framework, employees do not concentrate on cash and how a lot of the raise is. Be that as it may, how no one is singled out conversely similarly suggests that no one is seen for extraordinary work that goes over without a doubt the base expected of a position (Koetsier, 2017). Using this system may hurt purpose and lead to lost inspiration in those laborers that go the extra mile, at the end of the day, the very representatives the administration needs to keep upbeat. Likewise, if the administration awards everyone a similar raise dependent on a rate, it can undoubtedly run into related issues that happen when using wage bases to give raises. As a result, it may bring about inadequately performing representatives or more up to date ones getting a lot of greater increases than the association's star workers.


Performance assessments are only practically identical to the introduction of the board system in which it works. Affiliations that do execution assessments for doing them are consuming their time. Regardless, organizations that combine execution assessments into an expansive execution and use them to complete business targets have an excellent situation for accomplishing their objectives and in the end, their fundamental course of action. Just the administration can figure out which approach will work best for the organization representatives. The test for bosses is thinking of a procedure that successfully interfaces pay to execution. Shrewdness should then be utilized when picking the correct remuneration framework to compensate organization representatives.


Choi, S., & Whitford, A. B. (2017). Employee satisfaction in agencies with merit-based pay: Differential effects for three measures. International Public Management Journal, 20(3), 442-466.

Koetsier, I. (2017). The advantages and disadvantages of different pension system designs. Public or Private Goods? 77.

Cite this page

Essay Sample on Organizations: Review Compensations & Offer Raises to Attract/Retain Best Workers. (2023, Mar 27). Retrieved from

Free essays can be submitted by anyone,

so we do not vouch for their quality

Want a quality guarantee?
Order from one of our vetted writers instead

If you are the original author of this essay and no longer wish to have it published on the ProEssays website, please click below to request its removal:

didn't find image

Liked this essay sample but need an original one?

Hire a professional with VAST experience and 25% off!

24/7 online support

NO plagiarism