Compensation Research Essay
Manufacturing Compensation Strategies
Assessment Code: RWT1
Student Name: T
Table of Contents
Executive Summary 3
Research Findings 4
Merit Pay 5
Job Based Pay 6
Skill Based Pay 7
After examining several distinct compensation strategies utilized in the manufacturing industry, I have prepared this report to explore three specific plans; Merit Pay, Job Based Pay and Skill Based Pay. When considering a compensation plan, more than just pay should be included. No compensation strategy would be …show more content…
As the manufacturing industry shifts over this next decade, it will be critical for our organization to remain competitive in the marketplace. In order to do so, we must successfully manage our greatest asset, human capital. How we compensate our employees will define the quality of our products, the level of service our customers receive, and ultimately our profit margins.
As a small to mid-size organization, with 120 employees, we compete regularly with larger conglomerates for talent. Successfully adopting a strong compensation strategy will aid in positioning us as an employer of choice in our region. Additionally, research has shown that well targeted compensation plans are linked to reduced turnover, increase productivity and a reduction in workplace injuries.
As requested, I have thoroughly researched available compensation strategies and have prepared my findings on Merit Pay, Job Based Pay and Skill Based Pay. I have compared and contrasted each strategy and closely examined the benefits and drawbacks associated with their implementation.
After reviewing existing research, I believe the following three compensation plans offer several valid options:
Merit Pay, sometimes referred to as performance pay or pay-for-performance, is a compensation strategy that that links pay and potentially other