Hiring of a compensation manager

Hiring of a compensation manager

Employees are a significant and pivotal tool to the success of an organization and its ability to provide worth competition against its competitors both globally and within its operational field. Therefore, efficient management of employees by the organizational leadership towards achieving this goal cannot be ignored. For effective employee motivation and guidance towards the achievement of organizational goals, there needs to be a properly functioning compensation structure. Among the key roles of the compensation management is to attract employees and retain developed employees towards the achievement of organizational goals (Adeoye, 2014). Therefore, the recruitment of a compensation manager is inevitable if EasySpa stabilize its competitive advantage considering the increase in the number of employees that the organization has been witnessed in the recent past.

A compensation manager is mostly involved with the employees’ salary and wages, which is one of the most vital factors in motivating them to achieve the organizational goals set up. Research shows that apart from other benefits that employees might receive in an organization, a properly structured compensation plan that ensures employees receive good salaries and wages play a role in the organization attracting and retaining employees for a long time. For a growing organization, it is important that they maintain employee turnover at a very low rate so that they gain a clear understanding of the organizational operations. As much as Jay has tried to ensure that this department is taken care of and employees receive an attractive pay, he has found it challenging and therefore it means there is a lot that has not been done, which can only be enacted by a compensation management specialist. For example, the organization is likely to lose highly qualified employees due to lack of a written job description and a formal payment structure (Adeoye, 2014). These are some of the basic things that guarantee employees of their job security and ensure that they are not overworked. Lack of such important provisions might negatively affect EasySpa’s growth and competition hence the need for a compensation manager.

A specialist in compensation management will also guide the organization on effective fringe benefits required by to ensure that employees are satisfied to enhance retention. These are the packages that the employer commits in addition to the monetary compensation to the employee. A compensation manager will ensure that the packages added in supplementary are well researched and executed so that they have a direct impact on the organizational growth and employee satisfaction. These may include employee paid time-offs and protection programs. Research shows that these benefits have a significant overall job satisfaction (Mabaso & Dlamini, 2017). Considering that the benefit package at EasySpa was designed by an external consultant and has not been changed since its establishment, it might not adequately address the current employee needs. At that time, there were only 15 employees and now the number is approaching 400 employees. A compensation manager should be recruited so that they identify the current employee needs and amend the package accordingly.

From the employer’s perspective, EasySpa in a profit-making organization and therefore all expenditures on compensation have to be properly evaluated to ensure that the company does not plunge into losses from over-expenditure. Controlling of these costs incurred on benefits can only be better enacted by a compensation expert. The compensation manager will also ensure that the investment put into the monetary compensation and other employee benefits generate returns in terms of positive employee attitudes, behavior and improved organizational performance (Obasan, 2012). With the many tasks being handled by Jay at the moment, EasySpa needs a compensation manager that will guide the organization through all these important tasks that are vital for its growth.  



Adeoye, A. (2014). The Influence of Compensation Management on Employee’s Leadership Role in Insurance Sector: Nigeria Experience. Mediterranean Journal of Social Sciences, 5(7), 342-352.

Mabaso, C., & Dlamini, B. (2017). Impact of Compensation and Benefits on Job Satisfaction. Research Journal of Business Management, 11(2), 80-90.

Obasan, K. A. (2012). Effect of Compensation Strategy on Corporate Performance: Evidence from Nigerian Firms. Research Journal of Finance and Accounting, 3(7), 37-45.

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