Question & Answer: Determine the best way that three major concepts you learned in COMPENSATION…..

The three major concepts that I have learned in the Compensation Management course that could be applied or recognized in organizations are building internal consistent compensation systems, pay structures that recognize employee contributions and discretionary benefits. As of now many organizations and human resource groups are struggling to remain or become competitive in the business market regarding compensation. The three major concepts can be utilized and recognized in organizations because it will enable business success, retention and attraction of a qualified workforce.

The major issues that will be at the forefront of compensation management twenty years from now will be determining salary for executives and discretionary benefits. As of now executives are paid an enormous amount of money. With globalization and automation on the rise, the organizational need for executives may decrease and with that may become a challenge for HR groups to determine salary because the demand may not be there. As far as discretionary benefits, employee’s needs are forever changing because of a struggling economy. For example, child care cost as of today can tend to be unaffordable.