Compensation Practice

Compensation Practice

Erin Melvin

Strayer University

Strategic Compensation

BUS 409

Professor Przybyl

October 29, 2015

        Briefly describe the company you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing.

        Ford Motor Company is dominating automobile manufacturer whose headquarters are in Dearborn, Michigan. They have been the second largest automobile industrial corporation in the world, accumulating revenues of more than $144 billion while employing about 370,000 people. Operations are expanded into 200 countries. In spite of industry struggles they generate income and benefits from administrative subsidiaries. The company’s center of benefits business remains in the plan, but fabricating automobiles available to be purchased on the customer showcase is their main focus.  Ford has been in business for 112 years, over this timeframe the company has delivered over 260 million vehicles with very high consumer loyalty evaluations, which are some of the best in the focused sector. (www.ford.com).

As the economy continues to change rapidly along with some of the most troubled atmospheres percentages have changed dramatically. This will keep employees requesting increments in the charges of pay advantages bundles. Major changes has pushed them into taking preventive measures to ensure there compensation policies strategy flow together, and retain valuable employees. Watching the growing and demand of improvements in the economy, employee retention is not something to be taken lightly or looked over.  In order to keep the interest of the employees the organization should ensure that they always determine the best policies regarding compensation and what drives employees to maintain their longevity at one company.

  Ford currently uses a flexible compensation strategy. Everyday companies are competing to employ the best employees for their organization. All incentives offered are not based on the employee’s performance and may not be due to a financial increase. For example, if the factory goes a certain amount of days without any safety violations, does not reward each employee financially, but ultimately saves Ford millions of dollars and the company’s reputation.

Ford is a strong organizational structured company that believes in effective work processes and employee incentives.  Developing various payments packages that concentrate on the energy of the staff, they have begun expanding the concept of a reward system beyond the traditional guidelines of a payment system. All the benefits that Ford Motor Company has to offer, focusing on employee satisfaction is just as important as consumer satisfaction.