The HRM Pay Model: How to Reward Your Employees

The pay structure of the target organization is well aligned with both the internal needs of the organization as well as the average industry standards. For instance, the minimum hourly pay for the organization is $12.0. This pay is higher than the federal minim hourly pay as well as the pay for other competing organizations such as Wal-Mart. Moreover, the organization has put in place compensation structure that encourages productivity and creativity. However, there remain several opportunities that the organization can leverage to improve its pay structure and hence, its competitiveness in attracting human resource in the industry. First, the organization can consider incorporating benefit packages. These could include health benefits packages, educational benefit packages, and attractive retirement packages. Secondly, the organization can put in place an annual pay increase structure aligned to inflation rates as well as the employee performance management system. The approach will encourage employees to achieve departmental and overall organizational goals. 

The management of the target organization has equally been committed to ensuring that employees receive salaries commensurate to their work input and their qualifications. Moreover, employee training has been identified as an area of improvement for the organization. Besides, the organization’s management can consider developing a well-structured performance management system that will ensure that employees are compensated for their contribution to the organization’s achievements of its goals and objectives. There is a need for the management of the organization to carry out structured salary audits annually to ensure that the salary structure is consistently aligned to the needs of the organization as well as the industry standards. Furthermore, it is important to assign responsibility to individuals for the enforcement of all compensation areas in the organization. Such improvements will greatly enhance the management of the organization’s pay strategy.