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HR Compensation It Is Well Established That Essay

HR Compensation It is well established that human resources personnel have a direct and forceful impact on the strategic success of any business or economic organization. Ulrich (1997) suggests that "the relationship between HR practices and business results is built on a rather simple premise: better deployment and use of HR practices should correlate with higher business results "(p.303). One tool HR managers have at their disposal is the use of compensation packages and their unique impact on the labor force. The purpose of this essay is to examine compensation packages, in both the monetary and non-monetary form, impact on attracting and maintain a desirable workforce and the possible influence on the overall effectiveness of the organization.

Casico (2010) discussed the aspect of compensation in terms of rewards. He suggested that compensation could be divided into two separate categories; either financial or non-financial rewards. Financial rewards are considered the monetary distribution of profits to employee's salaries and indirect payments such as benefits. Nonfinancial rewards are more vague but they include such...

Although financial rewards are more tangible and common, it is important for HR leadership groups not to diminish the subtle qualities that contribute to non-financial rewards. Unfortunately this aspect is commonly overlooked in many instances.
According to the video interview of SYSCO personnel, many of the key players proclaim the importance of a strong human resources department contributing to the overall productivity levels of their operations. Ken Carrig, COO of a very successful and high-profile company, SYSCO, manages a system where human capital is one of the key metrics involved in ranking the overall quality of the company. Within this metric he claims that employee satisfaction is the most important factor in maintaining higher production levels. This emphasis demonstrates the importance of nonfinancial rewards to the larger compensation picture.

Monetary rewards are complicated and complex in their own right. Paying…

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Works Cited

Cascio, W. (2010). Managing Human Resources. Productivity, Quality of Work Life, Profits. 8th edition. McGraw Hill.

Casico, W. (n.d.) . HR in Alignment hosted by Wayne Casico.

Ulrich, D. (1997). Measuring Human Resources; An Overview of Practice and A Prescription for Results. Human Resource Management, Fall 1997. 36, 3, Pp 303-320. Retrieved from http://www.e-rh.org/documents/ISO/measuring-hr-kpi-for-hr.pdf
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