OL 211 Milestone Four Section One: The compensation philosophy that an organization utilizes plays a huge role in the overall performance of the company and also the individual performance of their employees. “Managers must first and foremost understand the strategic objectives of the organization in relation to the industry at which it operates.” (Bohlander, 2015) Maersk used a pay to perform approach to reevaluate employee performance and to “reinforce the company’s commitment to reward performance and drive the talent management strategy.” (Groysberg, 2013) They used People Strategy Sessions (PSSs) to compare positions across all business units inside the organization. This helped the organization determine the link between employee performance and compensation and allowed them to link the performance to determine the cap of employee bonuses. It also allowed them to emphasize the training of experienced employees rather than trainees. (Groysberg, 2013) A huge problem that Maersk was facing was employee attrition, so the company expanded efforts to allow employees flexibility and to increase the opportunity for advancement. The flexibility was helped …show more content…
Perhaps if Maersk offered benefits such healthcare and childcare then the employee retention rate would improve. I think offering every employee the same benefits would increase employee performance. If employees understand the value that their discretionary benefits add to their job, then the motivation to perform will aid in the overall performance and growth of the company. If I was an employee at Maersk, and they offered discretionary benefits, I know my motivation as an employee would increase knowing that my employer invested in me as a valuable component of the