Why organisations need to design a desirable compensation plan

Compensation system plays a crucial role in a business organisation. It helps attract qualified candidates to join an organisation as well as becomes a strong motivator for employees to perform at high levels and exceed goals. Compensation plan is designed and incorporated to streamline the activities. Most importantly, why organisations need a holistic compensation programme, is to  to remain competitive within their industry and to attract and retain top talent. 

In accordance with the above objectives, Apeejay School of Management (ASM) recently organised a guest lecture on ‘Compensation Design’ for its students, who will soon be stepping into their professional journey. 

The session was delivered by Aman Thakral, an alumnus of ASM, and currently the Business Head at Target Integration Ltd. During the session, Aman explained in detail the need for a strategically designed compensation system. He said that organisations’ can start by identifying desired outcomes and goals for themselves. “Companies need to sell their mission and vision to people,” he added.

The session was attended by more than 50 participants. 

Sharing his experience, Aditya Anand Jha, a student of ASM said, “It was a wonderful session where we got a hands-on perspective on compensation design. It was simply great to learn the significance of non-monetary incentives to enhance employee job satisfaction and employee retention.”

“There was a lot of learning in this session. We learnt that although a brand name plays an important role in an individual’s decision-making process to join a company, a progressive compensation plan plays a vital role in sustaining the brand appeal. A good compensation design motivates employees to contribute towards the growth of an organisation in a more meaningful manner,” mentioned another student Mehak Gupta. 

Further, ASM student Kajal Kumari said that a good compensation programme will not just attract top talent, but retain key resources as well.  “It was an interesting session. We learnt that organisations need to conduct research constantly to understand the aspirations of both current and potential employees while designing compensation.”