Compensation:Theory Evidence and Strategic Implications

Organizations are becoming more concerned with positioning employee compensation as a strategic human resource management function in order to gain competitive advantage. The increasing competitiveness of the labor market and turnover of employees has resulted in a nightmare in compensation planning. Apart from this, the growing demand of the employees and competitive salaries offered by multinational companies has almost resulted in a compensation war in certain industries. Compensation represents the largest of all expenses in most organizations. With such high stakes on the table, there is enormous demand for innovative business practices and the need to have a closer look at the compensation management system for more effective business results. This book by Barry Gerhart and Rynes provides answers to many compensation related issues being faced by management and generates thought provoking questions that will force the managers to have a relook at their compensation system, evaluate and improve upon it and motivate the researchers to work on the research gaps highlighted in the book.