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It's important for organizations to promote both of these aspects because it's possible to stimulate one without the other. For instance, employees are likely to express exceptional engagement to a company that provides a strong performance rewards system with no retirement plan. However, these employees are likely to commit to another company that offers the strong rewards system and a good retirement plan.
Consequently, managers need to design the organization's compensation plans through the strategic and careful consideration of employee commitment and engagement. While compensation contains financial and non-financial elements, the most suitable compensation plan supports the organization's strategic objectives. This component also enhances an organization's competitive advantage by helping it to attract suitable job candidates, encouraging them for maximum performance, and promoting long-term maintenance of workers.
One of the most effective...
It increases employees' commitment by enabling to trust that they will be rewarded for their good performance and contribution to organizational productivity. In most cases, workers tend to be highly motivated by financial rewards that stimulate greater effort to be committed and generate more if the provided incentives are worth the effort. The other suitable compensation strategy is competence-based pay, which involves rewarding employees for mastering the relevant knowledge and skills for their jobs and the ability to generate valuable results to the organization.
Works Cited:
Vance, Robert J. "Employee Engagement and Commitment: A Guide to Understanding,
Measuring and Increasing Engagement in Your Organization." SHRM Foundation's Effective Practice Guidelines. Society for Human Resource Management Foundation, 2006. Web. 17 Feb. 2012. .
Works Cited:
Vance, Robert J. "Employee Engagement and Commitment: A Guide to Understanding,
Measuring and Increasing Engagement in Your Organization." SHRM Foundation's Effective Practice Guidelines. Society for Human Resource Management Foundation, 2006. Web. 17 Feb. 2012. <http://www.shrm.org/about/foundation/research/Documents/1006EmployeeEngagementOnlineReport.pdf>.
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