This document provides instructions for a 3-5 page essay on compensation strategies within organizations. The essay should be written in APA format and address three topics: how organizations determine important compensable factors, how compensation ties into corporate values, and an example of how compensation programs achieved strategic goals. At least two scholarly references should support the discussion.

1. Strategic compensation is a component of the human resource
system. Organizations must determine the importance of many
factors when choosing compensation and benefits. Write a
three-to-five page essay (not including the title and reference
pages) that summarizes the impact and effect of compensation
within an organization. Your paper should be written in a
scholarly third-person tone; it should be in APA format. In
addition to the introduction and conclusion, your paper should
address the following:
Examine how organizations determine the relative importance
of compensable factors.
Evaluate how compensation strategies tie into underlying
corporate values.
Analyze an example which demonstrates how an organization’s
compensation and benefits programs have been utilized to
obtain corporate strategic goals.
In addition to the text, cite at least two scholarly references to
support your discussion.
Carefully review the
Grading Rubric (Links to an external site.)
for the criteria that will be used to evaluate your assignment.
Week one Notes:

2. Compensation & Benefits. Throughout this course, you will gain
an in-depth knowledge into compensation theories, policies,
systems and practices with emphasis directed towards designing
effective compensation programs. Overall, this course will
provide knowledge of the art of compensation practice and its
role in promoting companies competitive advantage.
Additionally, this course will examine the context of
compensation, the criteria used to compensate employees,
compensation design systems, employee benefits, and the
contemporary challenges organizations will face in the future.
In Week 1, this course will provide an overview of
compensation systems as well as assess compensation strategies
and their impact on an organization.
Strategic compensation is a human resource management
approach employers use to attract, retain, motivate and grow
talented employees as organization's goals and objectives are
maintained. The importance of a strategic compensation
approach is to meet the organizations goals but to also obtain a
competitive advantage. Since the early “1980s, there has been
increased recognition in the business field that human resources
contribute to the competitive advantage of an organization”
(Martocchio, 2017). A competitive advantage results from
having the right employee working in the organization.
Therefore, to have the best employees, they need to recruit and
maintain said employees via a competitive compensation
package.
When HR professionals are deciding on a strategic
compensation policy there are a few questions that need to be
asked including:
Is compensation strategy suitable for the overall objectives of
the competitive business and HR strategies;

3. Is the choice and design of the compensation practice suitable
for the compensation strategy; and
Does the implementation of the compensation practices
effectively increase employee job performance?
(Martocchio, 2017).
Additionally, organizations should understand the workforce
they’re looking to attract, have a realistic budget in mind and be
able to implement the compensation plan in a way for all
employees to understand regardless of learning style.
The total compensation package is made up of both extrinsic
and intrinsic rewards. An intrinsic reward includes personal
achievement, professional growth, sense of pleasure and
accomplishment. An example of this will be training and
considerations the organization would make to improve the self
of an employee. Overall, it is the value employees receive from
doing their job. While extrinsic compensation is a tangible
reward such raises, or other mandatory or discretionary
benefits. Most employees are more familiar with the extrinsic
rewards are it may deal with retirement plans, health insurance,
and/or bonuses.
Overall, for an organization to retain the right employees, it is
important to pay the employee a competitive wage and
compensation package. Accordingly, an organization shall have
a competitive strategy which includes a competitive
compensation and benefits package when it comes to retaining
and motivating their employees. However, not all employees
will be interested in the same compensation and benefits
package. For example, an employee who is more focused on
retirement may be more interested in a retirement plan as

4. opposed to an employee who is more interested in their wages
to pay off student debt. Therefore, the organization will not
have a one stop shop when it comes to compensation packages
for all employees. This is also true from organization to
organization; as each will have a compensation and benefits
package that will not be the same as a similar organization.
Overall, an organization will strategically develop a
compensation and benefits package that will best suit the needs
of the organization and the employees. It’s important to be
creative during the process to ensure they’re meeting the
intrinsic and extrinsic need of the employee as well as
organizational goals. Every organization wants to recruit and
maintain the best employees for its business and doing so
requires a competitive compensation package as employees will
compare packages while considering a potential place of
employment.
Please review the
HR Basics: Employee Benefits (Links to an external site.)
video which will provide an overview of employee benefits.
References
Gregg Learning. (2017).
HR basics: Employee benefits (Links to an external site.)
[Video file]. Retrieved from
https://www.youtube.com/watch?v=5fX9eQubzEE
Martocchio, J. (2017).
Strategic compensation: A human resource management
approach
(9th ed.). New York, New York: Pearson.
Grading Rubric:

5. Examines How Organizations Determine Relative Importance of
Compensable Factors
Total: 1.50
Distinguished - Provides an accurate and thorough examination
of the importance of the relationship of compensable factors to
corporate success.
Proficient - Provides an examination of the importance of the
relationship of compensable factors to corporate success. Minor
details are missing or inaccurate.
Basic - Provides a limited examination of the importance of the
relationship of compensable factors to corporate success.
Relevant details are missing and/or inaccurate.
Below Expectations - Attempts to examine the importance of
the relationship of compensable factors to corporate success;
however, significant details are missing and/or inaccurate.
Non-Performance - The examination of the importance of the
relationship of compensable factors to corporate success is
either nonexistent or lacks the components described in the
assignment instructions.
Evaluates How Compensation Strategies Tie Into Underlying
Corporate Values
Total: 1.50
Distinguished - Comprehensively and accurately evaluates how
compensation strategies tie into underlying corporate values.
Utilizes scholarly sources to support the evaluation.
Proficient - Evaluates how compensation strategies tie into

6. underlying corporate values. Utilizes scholarly sources to
support the evaluation. Minor details are missing or inaccurate.
Basic - Partially evaluates how compensation strategies tie into
underlying corporate values. Utilizes some scholarly sources to
support the evaluation. Relevant details are missing and/or
inaccurate.
Below Expectations - Attempts to evaluate how compensation
strategies tie into underlying corporate values; however, does
not adequately utilize scholarly sources to support the
evaluation and significant details are missing and/or inaccurate.
Non-Performance - The evaluation of how compensation
strategies tie into underlying corporate values is either
nonexistent or lacks the components described in the assignment
instructions.
Analyzes an Example Which Demonstrates How an
Organization’s Compensation and Benefits Programs Have Been
Utilized to Obtain Corporate Strategic Goals
Total: 2.00
Distinguished - Thoroughly and accurately analyzes an example
which demonstrates how an organization’s compensation and
benefits programs have been utilized to obtain corporate
strategic goals.
Proficient - Analyzes an example which demonstrates how an
organization’s compensation and benefits programs have been
utilized to obtain corporate strategic goals. Minor details are
missing or inaccurate.
Basic - Somewhat analyzes an example which demonstrates how
an organization’s compensation and benefits programs have

7. been utilized to obtain corporate strategic goals. Relevant
details are missing and/or inaccurate.
Below Expectations - Attempts to analyze an example which
demonstrates how an organization’s compensation and benefits
programs have been utilized to obtain corporate strategic goals;
however, significant details are missing and/or inaccurate.
Non-Performance - The analysis of an example which
demonstrates how an organization’s compensation and benefits
programs have been utilized to obtain corporate strategic goals
is either nonexistent or lacks the components described in the
assignment instructions.
Written Communication: Control of Syntax and Mechanics
Total: 0.25
Distinguished - Displays meticulous comprehension and
organization of syntax and mechanics, such as spelling and
grammar. Written work contains no errors and is very easy to
understand.
Proficient - Displays comprehension and organization of syntax
and mechanics, such as spelling and grammar. Written work
contains only a few minor errors and is mostly easy to
understand.
Basic - Displays basic comprehension of syntax and mechanics,
such as spelling and grammar. Written work contains a few
errors which may slightly distract the reader.
Below Expectations - Fails to display basic comprehension of
syntax or mechanics, such as spelling and grammar. Written
work contains major errors which distract the reader.

8. Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.
Written Communication: APA Formatting
Total: 0.25
Distinguished - Accurately uses APA formatting consistently
throughout the paper, title page, and reference page.
Proficient - Exhibits APA formatting throughout the paper.
However, layout contains a few minor errors.
Basic - Exhibits limited knowledge of APA formatting
throughout the paper. However, layout does not meet all APA
requirements.
Below Expectations - Fails to exhibit basic knowledge of APA
formatting. There are frequent errors, making the layout
difficult to distinguish as APA.
Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.
Written Communication: Page Requirement
Total: 0.25
Distinguished - The length of the paper is equivalent to the
required number of correctly formatted pages.
Proficient - The length of the paper is nearly equivalent to the
required number of correctly formatted pages.
Basic - The length of the paper is equivalent to at least three
quarters of the required number of correctly formatted pages.

9. Below Expectations - The length of the paper is equivalent to at
least one half of the required number of correctly formatted
pages.
Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.
Written Communication: Resource Requirement
Total: 0.25
Distinguished - Uses more than the required number of
scholarly sources, providing compelling evidence to support
ideas. All sources on the reference page are used and cited
correctly within the body of the assignment.
Proficient - Uses the required number of scholarly sources to
support ideas. All sources on the reference page are used and
cited correctly within the body of the assignment.
Basic - Uses less than the required number of sources to support
ideas. Some sources may not be scholarly. Most sources on the
reference page are used within the body of the assignment.
Citations may not be formatted correctly.
Below Expectations - Uses an inadequate number of sources
that provide little or no support for ideas. Sources used may not
be scholarly. Most sources on the reference page are not used
within the body of the assignment. Citations are not formatted
correctly.
Non-Performance - The assignment is either nonexistent or
lacks the components described in the instructions.