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APA
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Business & Marketing
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Essay
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English (U.S.)
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Topic:
Explaining Amazon's Compensation Strategy
Essay Instructions:
Compensation Strategy
I only need 275 words for the Discussion post. I am adding another page. The reason I am adding another page is that there is a six question Quiz I need completed as well. Please message me if addt'l questions on this part.
Discussion Post -Select an organization with which you are familiar and describe the type of compensation strategy it uses.
Guided Response:
Be sure your response is between 200-300 words and includes at least two scholarly references, one of which should be our course text. Respond to at least two classmates’ posts.
Essay Sample Content Preview:
Compensation Strategy
A compensation strategy must be congruent with the strategic goals and vision of an organization (Weathington & Weathington, 2020). If there one company that has aligned its compensation strategy with its strategic goals, it has to be Amazon. The company offers a beginning pay of at least $15 per hour that is accompanied by a wide range of benefits including parental leave, healthcare coverage, and saving plans (Amazon, n.d.). What is unique about Amazon’s compensation is that it includes equity. Typically, the company’s compensation depends on its stock, and specifically, restricted stock units (RSUs). As noted by Ferracone (2019), the allocation of the RSUs is done on an episodic and differentiated basis to employees whose performance creates value for the company and contributes to its long-term success. A key characteristic of the system is that it has longer than usual vesting as it takes 5 or 6 years for the employees to acquire the equity benefits (Ferracone, 2019). This compensation strategy limits the employees of the company from leaving as their compensation is bound to be received after a long period. Nevertheless, the gradual increase in the company’s stock price makes the more compensation attractive.
A drawback of the system is that it is dependent on the stock performing well, and when it is not, the company is bound to experience a huge turnover. If the employees of the company do not perceive valu...
A compensation strategy must be congruent with the strategic goals and vision of an organization (Weathington & Weathington, 2020). If there one company that has aligned its compensation strategy with its strategic goals, it has to be Amazon. The company offers a beginning pay of at least $15 per hour that is accompanied by a wide range of benefits including parental leave, healthcare coverage, and saving plans (Amazon, n.d.). What is unique about Amazon’s compensation is that it includes equity. Typically, the company’s compensation depends on its stock, and specifically, restricted stock units (RSUs). As noted by Ferracone (2019), the allocation of the RSUs is done on an episodic and differentiated basis to employees whose performance creates value for the company and contributes to its long-term success. A key characteristic of the system is that it has longer than usual vesting as it takes 5 or 6 years for the employees to acquire the equity benefits (Ferracone, 2019). This compensation strategy limits the employees of the company from leaving as their compensation is bound to be received after a long period. Nevertheless, the gradual increase in the company’s stock price makes the more compensation attractive.
A drawback of the system is that it is dependent on the stock performing well, and when it is not, the company is bound to experience a huge turnover. If the employees of the company do not perceive valu...
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