2
Market Competitive Pay Systems
A balanced approach to finances, which translates to internal consistency, is the most crucial factor when defining pay systems. Businesses find it challenging to maintain consistency in benefits within a capitalistic and expanding/evolving market. However, attention to employee needs like paid time off and competitive salary determines whether employees are retained or depart a company. I have been in the U.S. Air Force for 15 years, and during that time, I have observed good and bad habits of consistency and attractive pay and benefits. A company's commitment to its employees through moral and Biblical principles is reflected through consistent and competitive compensation systems.
Competitive Advantages in Pay & Benefits
Martocchio (2020) describes market-competitive pay systems as compensation guidelines that adhere to the requirements of competitive advantage. These wage structures significantly contribute to enticing and keeping the most capable and dedicated workers. Companies must provide employees with pay higher than the competition while still paying what is essential to keep the business financially afloat. Therefore, the most important factor when determining these goals is a balanced approach to finances, equating to internal consistency. Human resource management (HRM) can maintain qualified employees by consistently and fairly matching their work to a sustainable pay structure. Xiao & Cooke (2022) reveal that internal consistency affects employee well-being and determines the desire for employees to work proficiently and continue with the organization.
Balancing Consistency & Competition
Maintaining consistency in benefits within a capitalistic and growing/evolving market is exceedingly difficult. However, dedication to employee needs like vacation and competitive pay dictates employee turnover/retention. Consistency in a balanced approach to incentive pays through merit and timebound rewards increases the competitive advantage against the opposition (Martocchio, 2020). Talent management maintains several elements outside immediate compensation that ties into strategic and competitive pay systems. Employees must maintain a healthy work-life balance to ensure longevity and commitment to organizational values and goals (Rodríguez-Sánchez et al., 2020). Commitment to employee’s well-being is seen through a healthy pay/leave program. Reward systems that grant increasing (and sustainable) pay/leave for employees' continued service and innovation realize a balanced and competitive pay structure.
Personal Experience with Compensation Challenges in U.S. Military
Martocchio (2020) informs readers that strategic analysis is required through internal and external review of current pay and benefit systems. As a U.S. Air Force member for 15 years, I have seen positive and negative elements regarding consistency and competitive pay/benefits. Job security and promotion have remained greatly appreciated by military members. All members understand how to maintain employment and be promoted through the ranks. However, the promotion system has not evolved to match civilian corporations. I have witnessed several friends depart service for better-paying jobs in the civilian sector.
Pay (base pay, housing, clothing, and special duty allowances) and benefits (2.5 days of leave per month) are relatively superior to civilian employers. However, I (and many other military members) find vacationing difficult or negatively career-impacting to take leave. Based on the research above, it would behoove the Department of Defense to reevaluate the current pay and benefits structure. More to the argument, recruiting and retention levels are dwindling, and strategic review is paramount to National Security. Otherwise, an old (and less successful) draft will replace the United States' all-volunteer force.
Biblical Integration & Conclusion
Consistency and competitive pay systems reflect a moral obligation to the employees of a company. Jesus tells his followers to dwell in Him through all things. “As the branch cannot bear fruit of itself, unless it abides in the vine, neither can you, unless you abide in Me” (Joh, 15:4, NIV, 2022). Consistency in Christ grows sustainability against all risks. Additionally, growing in Christ’s teachings of generosity motivate executives to embrace radical love and support through improved pay and benefits for their employees. Jesus says we are to be called His friends, those of us who embrace boundless giving to those in need (Joh 15:12-15, NIV, 2022).
References
Martocchio, J. J. (2020). Strategic compensation: A human resource management approach (10th ed.). Upper Saddle River, NJ: Pearson ISBN: 9780135175910.
New International Version (NIV) Bible. (2022). BibleGateway.com. .
Rodríguez-Sánchez, J. L., González-Torres, T., Montero-Navarro, A., & Gallego-Losada, R. (2020). Investing time and resources for work–life balance: The effect on talent retention. International journal of environmental research and public health, 17(6), 1920. .
Xiao, Q., & Cooke, F. L. (2022). The joint impact of HRM attributions and HRM system consistency on employee well-being: A two-wave study. Employee Relations, 44(4), 926-947. .