The "negotiators" for the Government of Costa Rica have suggested "as a starting point" a proposal to increase the salaries of state workers which was met with "satisfaction" by the public employee unions.
EDITORIAL
Imagine you are responsible to the shareholders of a company that is in a very bad financial position, with costs consistently rising above income, meaning that the losses continually mount up and threaten the stability of the corporation.
Performance bonuses and other variable compensation schemes weigh increasingly on the total compensation of senior managers.
In order to motivate and retain executives companies are tending more and more to compensate their executives with salary schemes where the variable proportion and that dependent on performance is increasing.
Paying with company stock, profit sharing from stocks or performance bonuses are some of the payment methods being used by companies for senior managers, as detailed in a report by consulting firm PriceWaterhouseCoopers.
More than money itself, employees express more affinity and give more to those jobs where they manage to make an important connection with their environment.
The emotional power of salaries
By Manpower
Money is not everything when it comes to human resource management.
The multinational has reached an agreement with the main Honduran labor union to create a $1.54 million relief fund to help workers made redundant.
Two factories that supplied NIKE were forced to close in January 2009 and still owe $2 million in salaries and benefits to 1,800 employees, an insignificant amount compared to its $19 billion revenues last year.
Bonuses to personnel must be balanced with the company’s short and long term perspectives.
Jorge Londoño, president of Grupo Bancolombia, explained how they applied the Shareholder’s Value Added System (SVA) in this bank, in such a way to prevent short term problems or distortions when applied.
Even if the economy recovers, there may not be enough resources to increase salaries. However, a pat on the back is always well received.
Increasing remuneration is almost always the best tool to motivate an employee. When it is not available, we must turn to other options, that, if used correctly, can compensate the disillusion of not getting a pay rise.
Acknowledging and rewarding good performances improves employee satisfaction and increases the organization's productivity.
Explicit recognition must be part of the staff management strategy, as much as an adequate remuneration policy. Salary is not the only source of satisfaction for employees.
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