PHR Books discuss Rewards and Compensation
PHR Books have certain topics which discuss rewards and compensation. As most companies assign this policy to HR, it is very important that PHR-certified individuals have a working knowledge of current rewards and compensation policies.
A company has to take rewards and compensation seriously since this will attract and maintain the best individuals to do the different jobs in their day to day operations. For a company to be globally competitive, they have to be composed of world class employees. They need to have a great compensation package to attract the cream of the crop of the industry and retain the great people they already have. Some companies concentrate on short term rewards while some have long term rewards such as a retirement package. PHR books offer the seven economic guides for compensation.
The Labor Theory of Value by Karl Marx says that the value of goods and service is directly proportional to the amount of labor require for them. The majority of companies have rejected this idea, but some unconsciously embrace it due to the fact they remain indifferent to the changes in market rates. Companies should also look at the labor market and the economy of the nation (and times) they are in. This will give them an actual benchmark on where to place the bar on proper compensation. Efficiency wage is when companies pay above the market value to keep the best people with them. This is opposite of effort bargaining where the company does not increase the pay but add additional benefits to the whole compensation package. Human Capital and Agency Theory are known to create mistrust from their employees. Human Capital takes advantage of certain individuals with the right skills sets at the right time but does not offer tenured packages. Agency Theory separates the company into different sub companies depending on certain skill sets of its employees. Neither properly assigns value to the best workers.
Organizations need to evaluate their employees and their compensation packages to promote an efficient and productive relationship with their workforce. PHR candidates need to use different sources, such as PHR books, training videos, and interviews with HR experts, to learn the details of this complex aspect of HR management.
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