Topic > Success Factor Compensation Case Study Sap - 968

Essentially, a high wage rate helps balance the supply and demand curve for labor. Companies that implement high wages or incentive and reward programs never find themselves short of manpower and this is because most workers seek to work in such companies. These companies also benefit in terms of low turnover rate, greater loyalty and commitment to the company, motivated employees, high performance and fewer work-related disputes that could lead to litigation. Businesses should understand that incentives should never always be in the form of monetary compensation. As highlighted above, compensation can take the form of structured or random incentives. The company can integrate both forms of incentives in order to maximize its initiatives. Additionally, companies should integrate a performance evaluation system that helps them provide the right incentive. When providing remedies, formulating regulations and laws, or when negotiating agreements for affected parties, the FWC should consider the importance of compensation for incentives and apply them accordingly. Additionally, the CQ can offer advice to the parties involved when it comes to setting up the workplace