eview the article, “Management Without Consequences: 24% of Companies Pay Bonuses to Failing Performers.” Compensation and benefits is a very important part of the strategic plan of an organization. Compensation and benefits are designed to attract, motivate, and retain employees and to achieve an advantage over competitors. Financial forms of compensation include direct pay (including base salary) and variable pay (also known as incentives or pay-for-performance). Indirect pay is more frequently known as benefits, such as paid and unpaid time off, insurance protection, and retirement programs. Lifestyle benefits or quality of work-life (QWL) issues are very important for achieving a competitive edge in efforts to attract and retain top talent.
Wage rates in the United States are higher than similarly skilled workers in other countries such as China, Mexico and India. Consequently, many U.S. businesses have outsourced their manufacturing and production needs to take advantage of these lower wage rates. Discuss how, working collaboratively, the federal government and U.S. businesses can modify employee compensation packages to become more globally competitive. Respond to at least two of your classmates’ postings.
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