Ch 11 Establishing Strategic Pay Plans
Ch 11 Establishing Strategic Pay Planseach Response Must Have A Mini
Predict what type of candidate might be most attracted to an organization offering high salary and cash incentives, but expensive benefits. What are the pros and cons of this type of candidate?
The type of candidate most attracted to an organization offering high salaries and cash incentives with costly benefits is often characterized as highly motivated, performance-driven, and financially motivated. Such individuals typically prioritize immediate monetary rewards over other benefits and may be ambitious professionals seeking rapid financial growth. These candidates are often highly skilled, competitive, and driven by achievement, making them suitable for roles requiring high performance.
The advantages of hiring this candidate profile include increased productivity, goal-oriented behavior, and a focus on results that can lead to organizational success. However, a disadvantage is that they may prioritize financial rewards over organizational culture or team cohesion, potentially leading to high turnover if the organization does not meet their expectations or if market conditions shift. Additionally, their focus on cash incentives might result in ethical dilemmas or short-term thinking that could undermine long-term organizational goals. Ultimately, these candidates can significantly contribute to organizational growth if managed well but may also pose retention challenges if their expectations are not aligned.
References
- Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, Practice, and Evidence. SAGE Publications.
- Milkovich, G. T., Newman, J. M., & Gerhart, B. (2016). Compensation (11th ed.). McGraw-Hill Education.
Paper For Above instruction
Establishing an effective strategic pay plan requires a nuanced understanding of the factors influencing compensation and the behaviors recruiters seek in potential employees. An organization offering high salaries and cash incentives alongside expensive benefits attracts candidates who are primarily driven by immediate financial gains. These candidates tend to be ambitious, highly skilled, and competitive individuals seeking rapid recognition and monetary rewards for their performance. They are often attracted to sales roles, managerial positions, or entrepreneurial ventures that reward high achievement with substantial pay increases.
Such candidates bring significant advantages, including increased productivity, motivation, and focus on organizational goals. Their competitive nature can push teams forward and foster a high-performance culture. However, there are notable disadvantages as well. Candidates with a strong focus on monetary compensation might prioritize personal financial gains over other aspects such as teamwork, organizational loyalty, or long-term development. This could result in higher turnover rates, especially if the organization’s benefits or pay structure change, or if their performance expectations are unmet. Moreover, dependence on cash incentives might encourage risk-taking behaviors or unethical practices in pursuit of financial rewards.
The attractiveness of this candidate profile underlines the importance of aligning organizational pay strategies with candidate expectations and organizational values. To retain such talent, organizations must establish clear performance metrics, provide meaningful growth opportunities, and foster a culture that balances monetary rewards with other intrinsic motivators.
References
- Gerhart, B., & Rynes, S. L. (2003). Compensation: Theory, Practice, and Evidence. SAGE Publications.
- Milkovich, G. T., Newman, J. M., & Gerhart, B. (2016). Compensation (11th ed.). McGraw-Hill Education.