OLmilestone 4 - assignment PDF

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Compensation philosophy is a formal statement documenting employees compensations, its used to retain, attract and motivate employees. Used in human resources department this philosophy is based on many factors such as including the company’s financial position, size of the organizations, the industry, business objectives, marker salary information, finding qualified talent, the unique circumstances of the business. Having a well-designed philosophy will support Maersk’s plan as far as strategy, initiatives, business goals, competitiveness, operating objectives, and compensation. The purpose of a compensation philosophy should be to identify Maersk’s pay programs and total reward strategies, along with identifying how the program works to support Maersk’s business strategy, competitive outlook, operating objectives and human capital. Also, by attracting people as well as motivating employees to perform their best, keeping key talent and rewarding employees with high performance. While defining the competitive market position of the organization regarding base pay, variable compensation, and benefit opportunities. As well as defining how Maersk plans to pay and reward due to business conditions, competition, and ability to pay; by also ensuring the pay is equal to the work performed. However, an effective compensation philosophy should make sure the overall program is equitable, defensible and fair by employees, is fiscally sensitive, making sure the programs included in the philosophy and policy are legally compliant, communicating the philosophy, policy and programs to employees, also while making sure the programs offered by Maersk is fair, competitive and parallel to the compensation philosophy and policies. Salary surveys are important because they collect information regarding employee salaries and benefits across different industries, regions, and jobs serving as a tool to help companies make knowledgeable business decisions about compensation. They are valuable

because the provide statistical insights of an employee’s skill market allowing them to maximize the return on investment of the compensation programs. Salary surveys can also be used to better understand the strengths and potential exposure to competitive salaries and benefits. For example, employees won’t quit if they feel they are being paid what they are worth, making employees lose the motivation and commitment which can lead to a decrease in productivity. Creating a sense of fairness compensation survey data can help justify and communicate difficult business decisions. By offering discretionary benefits Maersk can help retain employees. Some of the benefits include offering life insurance, medical care, long term disability, retirement savings plan, paid holidays as well as many others. For example, having paid holidays off are a big bonus especially when only 10 public holidays are legally recognized by the federal government. Meaning that private employers do not have to offer employees the day off or pay for the holiday. Maersk offering their employees medical care and long-term disability is what would be a benefit that would definitely be hard to sacrifice for another job. also, by offering employees a retirement savings plan and life insurance could be a great benefit for employees to fall back on in case of retirement or death.

Referneces Maersk. (n.d.). Rewards. Retrieved from https://www.maersk.com/careers/work-withus/benefits

MaRs. (2021). Salary surveys: Compensation for employees. Retrieved from https://learn.marsdd.com/article/salary-surveys-compensation-for-employees/

SHRM. (2021). What is a compensation philosophy? What should be included in a compensation philosophy?. Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/hrqa/pages/compensationphilosophy.aspx...