Is a Compensation and Benefits strategy and policy necessary to run the organization

 

Compensation and Benefit strategy is one of the key document for a organization. It depends on the size of the organization and the category of the operation. When an organization starts its journey, it starts with a very small number of staff and operation is also small. At this stage, all the recruitments are very vital and the owner of the organization recruits for very specific positions with a very special skill set.

 As because the operation needs a very special person for its operation for very specific work. But when an operation starts bigger, then there are more people and more recruits. The business needs more units and more people to operate. When it requires more people, then the owner needs to hand over the recruitment to the unit head or HR. If the Compensation and benefit strategy or policy is not defined properly, there is an imbalance in different departments with the same rank and designations. It is also important to set so standard benefits based on the grade or category of staff. So whenever the organization grows it requires a fixed Compensation and Benefits strategy and policy.