Selection of remuneration policy, Finance Basics

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Selection of Remuneration Policy

The alternative of a suitable remuneration policy through a company will depend, with another thing, on:

1. Cost: the extent to that the package offers value for money

2. Motivation: the extent to that the package motivates staff both to stay along with the company and to work to their necessary potential.

3. Fiscal effects: government tax incentives may promote special kinds of pay. At times of wage control and high taxation this can react as an incentive to create the 'perks' a more important part of the package.

4. Goal congruence: the extent to that the package encourages staff to work in that a way as to attain the objectives of the firm - conceivably to maximize quite than to satisfy.


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