How might a company’s business strategy affect the internal alignment policies and techniques of its Total Compensation system?

Comp. & benefits | Business & Finance homework help

The internal alignment strategies and methods of the Total Compensation system will be affected by a business strategy in many ways. Different strategies will require different compensation arrangements to incentivize employees to achieve the company’s goals. If a company is looking to grow quickly, it may be necessary for them to offer short-term incentives instead of long-term raises. A second factor is that different strategies might require different amounts of total compensation. In order to cut overhead costs, one strategy could call for lower wages or freeze wages. Finally, change in strategies might also mean changes to the overall compensation system like benefits or incentive plans that reward particular behaviors or outcomes.