Maersk Compensation Policy and Market Influences on it
Compensation philosophy refers to the strategy employed by an organization’s employees and employers to ensure their staff’s payment. Maersk’s compensation method is based on the industrial approach design (A.P. Moller – Maersk, 2020). The pool of employees within the company, the management included, is grouped according to various factors. These factors comprise experience within the company in general, knowledge of their job and educational qualifications, and job demands. The company makes exceptions to this reparation policy in its strategy where it offers additional special payments when seeking to attract external candidates during recruitment (Maersk, 2020). The company offers recompense to these potential employees if they forego any awards for joining it. The market affects the reparation policy at the company forcing it to either adjust it upwards or downwards. Employees whose rare skills earn more than others while the forces of demand and supply also affect the compensation policy.
Value of Salary Surveys to an Organization
Salary surveys refer to research carried out by an organization within the industry or region to define what employees are paid. This informs the organization’s decision-making, enabling it to limit what compensation is appropriate for its various staff (Korneeva et al., 2021). The maximum and minimum salaries paid to employees within any specific department are key results of a salary survey and set limits. Companies determine the maximum salary payable to employees within a position and pay their most valued staff a little higher than that to ensure they retain them. This ensures that a company’s most valuable assets are content and focused on delivering their mandate hence overall success.
Wage assessments additionally enable a company to be legally compliant as governments in various regions have different compensation requirements (Butcher, 2017). Remuneration studies also ensure investment protection as the company can determine what percentage of their income goes into retaining their staff. This is crucial in enabling the company to avoid potentially crippling losses. Salary surveys also provide reliable data on whether investors are getting their value for money depending on the workforce output.
Advantages of Discretionary Benefits to Maersk
Discretionary benefits enable employee retention, promotion, positive workplace interactions, and productivity. The discretionary benefits act as incentives that keep the employees committed to the company hence retention (Malik, 2018). The competition that constantly tries to tempt the best workers from the company cannot offer better incentives. Productivity is enhanced due to better commitment to their work and the desire to perform exemplary by the employees. This is because they feel like they are truly a part of their company, prompting loyalty. Employee promotion entails higher education for the personnel to ensure that their skills are sharpened further. Better trained workers are more capable of performing excellently at their jobs.
Employees whose health is well catered for by the company are also likely to commit better to their work and seek minimum seek leaves (Malik, 2018). This ensures that the company is rarely understaffed, work is done appropriately, and quality is maintained. Regular benefit packages for laborers act as motivational factors that ensure these employees feel a sense of loyalty towards Maersk. In conclusion, discretionary benefits lead to employee and company improvement, ensuring a better quality of life and more profits.
References
A.P. Moller – Maersk. Remuneration policy 2020 (pp. 1–8). A.P. Moller – Maersk. Web.
Butcher, L. (2017). Practice Matters: How much money should you ask for?: how salary surveys can (or can’t) help. Neurology Today, 17(20), 11–12. Web.
Korneeva, E. V., Eremina, I. Yu., & Abdulkadyrov, A. S. (2021). Competitive salary as a company efficiency factor. Lecture Notes in Networks and Systems, 487–494. Web.
Maersk. (2020). Remuneration. Investor.maersk.com. Web.
Malik, A. (2018). Strategic compensation and benefits management. Springer Texts in Business and Economics, 133–139. Web.