Equity Essay Example | Topics and Well Written Essays - 500 words

Equity - Essay Example 2. Geographic location is one of the most important constraints that decide the internal payment structure of the organization as the location influences the standard of living of that employee. A posh locality where it demands high living costs require high compensation packages so the employee expects that the organization will compensate the expenses. Profitability: As the company incurs profits the dispensable income will increase which will be given to the employees and stakeholders as dividends and bonus. The more the profits the more will be the pay structure for the employees. Employee performance: The employee dedication towards the work and the way the employee perform the job activity will ultimately reflect on the organization’s performance and the profitability. The best employee will be recognized by some incentives and rewards which in turn motivates the employee 3. External factors like the government policies and regulations, the culture and customs and stakeholders play an important role in designing a pay structure as they provide the necessary inputs from unions and other parties to promote or to consider a compensation package for the employees which is socially acceptable. The organization requires individuals who can mould their experience into the mission and objectives of the organization for which there are working for; to accommodate people of this high interface, pay structure should be unique in its sense to entice the potential employees.