Fair compensation scheme is a dream for many HR Professionals. In reality, the fair compensation scheme does not exist, just the compensation scheme, the business is able to accept and employees understand the principles.
The company should invest time to design of the compensation scheme and even more time for presentation of the compensation scheme to employees. The employees need to trust the principles of the compensation scheme and the effort needed to gain the profits out of the compensation scheme.
Generally, the theoretical concept of the compensation scheme is very easy to be developed, but many companies have a lot of exceptions in the compensations scheme, many of them tailor-made for several employees.
The role of the HRM Function is to support the managers in the changes in the compensation scheme to bring it to the standardized way of the operations. And it usually pains and some employees leave the organization as they disagree with the changes in the whole concept.
The fair compensation scheme is not hard to design, it is very hard to implement it and to survive the wave of the employee dissatisfaction with the new concept in compensation and benefits.
