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The pay techniques in the compensation system should include base pay, merit pay, and incentive pay. The base pay should be set at a level that is competitive with other companies in the industry. The merit pay should be based on an employee's performance and should be given to employees who meet or exceed expectations. Incentive pay should be based on the achievement of specific objectives and should be given to employees who contribute to the success of the company. The linkage of the compensation strategy to the objectives of the company is important because it ensures that employees are motivated to achieve the objectives of the company. The recommended average base pay merit increase is 3%. This increase will help to motivate employees to achieve the objectives of the company and will also help to keep up with inflation.
Provide an indication of the priorities and messaging required to support the pay system. Clearly outline how the compensation system design will improve the employees' line of view of their performance to the pay they receive.
Workplace Communication Skills in personnel management and human resources
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