Organizational Strategies

Organizational strategies- The organizations employ various strategies to fix executive compensation. They are as follows:

Ensure that motivations are compatible: It is very important that the executive understands and accepts the motivation and vision of the organization.
Make negotiations a Win-Win situation: Though negotiations invariably begin with current salary/compensation totals, current employment status or previous misfortunes should not be held against the executive. Similarly, the executive should not try to cheat the employer. Mutual compromise and flexibility is necessary. Additional leverage points, such as accelerators, additional performance bonuses and/or commissions, perks, etc. can help to create a mutually acceptable agreement.
Streamline: Excessive delays can be very discouraging and effectively kill an executive’s enthusiasm for the opportunity. Most executives appreciate and respect a crisp, clean process, and tend to equate a company’s hiring process with its normal course of business; be it good or bad. Competitive organizations may also be pushing for acceptance.
Utilize the Search Process as a Market Strategy: Sometimes a position upgrade or a slight restructuring of an organization is in order to align the demands of the business with available capabilities. Accommodating a great performer can frequently bring a much greater return on investment.
Identify and address any issues: If the executive has any issues they should be identified, addressed and resolved so that they do not hinder the performance of the employee.

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