If Companies can Develop Compensation which is Both Internally Consistent and Market Competitive and Why the Goal is challenging to most organizations

The workers of a company acquire compensation on the work they have carried out in a company since it helps in retaining the appropriate talents and in the motivation of the employees. The compensation requires to become internally consistent so that the company can develop a culture of fairness among the workers and minimize discrimination in the organization. Also, workers who are paid regular compensation tend to maintain the same standards at work where one earns a specific pay for a given position at the company. The competitive market compensation helps the companies to have paid their employees’ wages which are reasonable regarding their qualifications in the industry (Martocchio 146-165). Therefore, it is possible to develop the compensation which is market competitive and internally consistent within the organizations.

The internally consistent compensation makes the company structure the job descriptions where there is the development of the pay scale. The employees’ ends up taking the responsibilities for other workers so that they can ensure the company remains competitive. This action occurs whenever the organization downsizes its employees or if they add more duties to their current workers (Martocchio 146-165). Therefore, this makes the responsibilities to change without altering the systems of internal consistent compensation.

Between Internal Consistency and Market Competitiveness which is the most significant in a Company

I believe both the market competitiveness and internal consistency are substantial in the company since organizations have to maintain a balance between the two aspects. Companies which take up the market competitiveness end up having inflation in their expenses thus affecting their competitive advantage. Those companies which choose internal consistency might end up having low skilled workers since the qualified employees look for better-paying jobs elsewhere (Martocchio 146-165). Therefore, maintaining a balance between the two aspects tends to be appropriate.

Works Cited

Martocchio, Joseph J. Strategic compensation: A human resource management approach. Pearson Education India, 2011.p146-165. Retrieved from file:///C:/Downloads/Strategic%20Compensation%20A%20Human%20Resource%20Management%20Approach%209th%20Edition.pdf