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which could be faced with inaccuracy. Employers who make use of outdated research information would also end up making the wrong decisions as far as employee compensation is concerned. The best determination of the strategy to employ for employee compensation is brought about by information obtained through primary research. The primary research usually involves collecting data and information through the application of the various primary methods of data collection. Surveys are usually the most effective since the response is more formal than most other methods like interviews and observations. Surveys are mainly conducted on annual basis to establish the pay scale and employee benefits within that particular year. This process is said to be difficult and that only a few companies manage to complete such surveys. In addition

only those companies that are sizable mange to make it through the process of data collection aimed at strategizing on employee compens...

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companies have always been keen about employee compensation and implementing the most effective strategy would require that managers think about the various factors influencing their companies’ decisions in employee compensation. He goes on to point that many companies and organization hardly have real strategies that revolve around their employee compensation. Most people think of strategies that are based on factors such as work experience

employees past performances

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employers would be found to have no basis of establishing the most effective way to determine salaries or wages. Many mistakes are made by managers in the Human Resource whenever establishing levels of employee compensation. The mistake is seen when considering the massive expenses incurred during employee compensation. Compensation is in fact considered the most expensive part of organizations expenditure (Chulik

2013). The issue of compensation being the most expensive part of organizations’ expenditures could be seen in the case of the United S...

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