Remuneration Strategy

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Question 1: Critically discuss the importance of organizational remuneration strategy.

Based on the case study “Remuneration as an Attraction Factor”, we can identify that remuneration is the key to draw and attract employees towards an organisation or a profession. Public sector organisations usually reward employees mainly for the job performed including the period of service and experience gained. On the other hand, private sector organisations combine basic pay with the skills, expertise and the performance of the employee. Remuneration is a reward received for employment based on the quality and efficiency of work and employee’s performance. It is the compensation given by an organisation to employees in return to a work done, services rendered, or a contribution made towards the accomplishment of organisational goals. This includes the base salary and other benefits that an employee receives during employment under the terms of a contract. Wages, allowances, and bonuses are examples of monetary compensation, while good accommodation, children education, medical plan, transport facilities, subsidized ration of essential commodities, and retirement plan come under non-monetary compensation. Recruiting the right people with the right skill is important in order to meet the organisation’s business objective. Every employee either from the low level to the top level management has to focus on the work quality and productivity in the workplace to ensure the organisation is meeting its goals and purpose. Managers or supervisors have to make effort to get to know the employees in their respective department or organisation because their involvement is important. The management of the workforce of an organisation can ensure sufficient staff levels with the right skills, properly rewarded and motivated. A good remuneration strategy ensures that the organisation is able to attract and retain the best talent and qualified employees in order to sustain the...
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