How can the employee remuneration program support the strategic business objectives?

To make sure the employee remuneration program is able to support its strategic business objectives, Company XYZ is recommended to take three elements into consideration.

On the one hand, to understand what benefits such kind of employee remuneration program will offer to the company to assist this medium sized organization further strengthen and speed up the fulfillment of its strategic business objectives requires great attention. As the survey conducted by (2007) explained that the well designed strategic business objectives own these characteristics including not only being specific, quantifiable, challenging as well as “do-able”, but also direct relationship with the remuneration system. Such kind of explanation gives us a hint that only when the remuneration program is improved to be consistent with the entire strategic business objectives of the Company XYZ, can this company better realize its strategic business objectives (Stone 2011). In another word, Company XYZ had better to make sure that its employee remuneration program emanate from its overall strategic business objectives which has a great influence on its employees’ performance and behaviors to be motivated(Stone 2011). Meanwhile, since the programmers and sales people in Company XYZ are the target employees in this remuneration program, it is also necessary for this company to consider the function of the employee remuneration program on stimulating and rewarding these employees’ behaviors which can incent them to have superior service performance (Stone 2011).

On the other hand, to fully communicate its goals and content of the employee remuneration program to all levels of the employees is also significant for Company XYZ in supporting its strategic business objectives (Stone 2011). As Palmer, Dunford and Akin (2009) suggested that there are two kinds of communication methods: one is from the top to the bottom of the company and the other is set on a relatively horizontal base. The former one called education and communication referring to management informing employees of what will happen in the company’s current remuneration program and what kind of changes and improvements will be given to this program. And the most important issue of this communication means is what kind of advantages of this newly designed employee remuneration program will bring to employees themselves. Under the assistance of this means, the resistance to the new remuneration program due to lack of information or misinformation from Employees can be removed and they can be motivated to have a better performance and facilitate Company XYZ to achieve its strategic business objectives. The latter method is called participation and involvement, which recommends Company XYZ to enhance the strength of horizontal communication. It refers to enlarge the magnitude of personnel involvement at all levels in Company XYZ on designing the employee remuneration program on the basis of thoroughly communication through horizontal level. The benefit of this approach can not only increase the organizational belonging of employees and win their support but also avoid the mismatch between the remuneration program and the real needs of employees, which may function more effectively to maximize employees’ performance so as to support its strategic business objectives.

Moreover, according to Stone (2011), another element for Company XYZ to ensure the employee remuneration program can support its strategic business objectives is the foundation provided for designing and implementing the remuneration program in this organization. First of all, the remuneration program’s objectives setting should be integrated with its strategic business objectives, human resource management objectives as well as company’s culture (Stone 2011). These three objectives and company culture should work as an entire system. At the meantime, since Company XYZ is a medium-sized web development company and its target review population is the programmers and sales people, it is crucial for the company to include other foundations for designing and implementing the remuneration program as below.

Firstly, make sure the equal treatment in the program. Secondly, ensure this program to maintain at the desired competitive level with the deliberate concern with what Company XYZ can afford. Thirdly, implement the remuneration program to encourage and reward performance of sales people and programmers-thereby making pay more variable. Fourthly, make sure this program comply with legal requirements. Furthermore, provide proper measures and reward on performance as well as facilitate the strategic business objectives to be achieved in this remuneration programs. (Milkovich & Newwman 2008; Stone 2011)

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