Remuneration is considered as the main incentive that motivates employees. Organizations seek to develop pay structures that favor both the employers and the employees. When coming up with competitive systems of compensation, compensation surveys are the main consideration. Well executed surveys provide organization managers with sufficient information about the pay rates in other companies that enable them to develop pay policies that challenge their competitors (Edmans et.al, 2017). Such pay structures enable professionals to attract new and retain highly talented employees. As the Human Resource (HR) manager for Nutriment Biotech, I would consider several sources of compensation data before developing a pay structure for the ten scientists and also their personal perception of wages. For the five posts, however, I would only use the data available in the compensation surveys due to the ease of accessing the individuals.
Several sources of compensation surveys are available and as the HR manager, I would put them into consideration. Some statistics surveys provide the weekly and monthly wages of employees per industry. County wages of employees for all the states are also available for the nation. Compensation surveys for other countries could also be of great help in developing a firm pay structure (Noe et.al, 2017). In all these surveys I would only be interested in the biotech industry which has high demand as compared to the other five posts. I would then use the data obtained to calculate the average wage of a biotech scientist so that I would have a rough estimate of the wages received in that industry.
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The second strategy I would adopt is considering the employee’s perception of wage. The wage adequacy and equitability depend on the perception of the employee and the amount earned (Heneman et al., 1988). However much compensation survey data is important the final decision lies in the hands of the employee. Allowing the employees to make a decision on what they want to earn influences how much they deliver and their attitude too. However, for the five posts, I would strictly use the data available since it is easier to find employees who fit in these positions.
References
Edmans, A., Gabaix, X., & Jenter, D. (2017). Executive compensation: A survey of theory and evidence. In The Handbook of the Economics of Corporate Governance (Vol. 1, pp. 383-539). North-Holland.
Heneman, R. L., Greenberger, D. B., & Strasser, S. (1988). The relationship between pay‐for‐performance perceptions and pay satisfaction. Personnel Psychology , 41 (4), 745-759.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource management: Gaining a competitive advantage . New York, NY: McGraw-Hill Education.
