How Does the Market Influence Maersk Compensation Philosophy?
TOPIC:
How does the Market Influence Maersk Compensation Philosophy?
INSTRUCTIONS:
OL 211 Milestone Four Guidelines and Rubric
Describe the compensation philosophy of Maersk and how the market influences this philosophy.
Determine the value of salary surveys to an organization.
Describe the advantages of discretionary benefits to Maersk.
Overview: This milestone focuses on the topic of this week’s lessons: compensating employees. Using the material on compensation provided in this week’s lesson and the case study, write a short paper in which you:
Describe the compensation philosophy of Maersk and how the market influences this philosophy.
Determine the value of salary surveys to an organization.
Describe the advantages of discretionary benefits to Maersk.
Guidelines for Submission: Your submission should be two pages in length and double-spaced using 12-point Times New Roman font. Be sure to list your references at the end of your paper. Submit journal assignment as a Word document.
Instructor Feedback: This activity uses an integrated rubric in Brightspace. Students can view instructor feedback in the Grade Center.
Compensation: Compensation
Meets “Proficient” criteria and description is clear and detailed
Describes the compensation philosophy and describes how the market influences this philosophy
Describes the compensation philosophy and describes how the market influences this philosophy, but description is cursory or inaccurate
Does not describe compensation philosophy
46
Compensation: Salary Surveys
Meets “Proficient” criteria and uses evidence to substantiate claims
Determines the value of salary surveys, and describes the advantages of discretionary benefits
Determines the value of salary surveys but does not describe the advantages of discretionary benefits
Does not determine the value of salary surveys
46
Articulation of Response
Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format
Submission has no major errors related to citations, grammar, spelling, syntax, or organization
Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas
Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas
8
Earned Total
100%
How does the Market Influence Maersk Compensation Philosophy?
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Describe the compensation philosophy of Maersk and how the market influences this philosophy.
Employee compensation refers to the benefits and perks that workers receive in exchange for their services or efforts rendered. Maersk’s compensation philosophy is anchored on values and commitments to global labor standards that obligate the firm to pay equal and fair prices to all its workers (Skou, 2022). The firm has both long- and short-term cash incentives for its workers and share options, as well as replacement and changes in incentives centered on salary. Maersk’s long-term employee benefits emphasize associating top performance and achievement in the long run and incorporate share options, which might be redeemed annually and improved based on the firm’s stock price fluctuations. The company’s short-term cash incentives are tailored to foster high levels of employee performance and attainment at the workplace. Their compensation philosophy is “pay for performance,” where cash bonuses are reimbursed upon attaining specified financial objectives, the firm’s aggregate results, or other non-financial objectives such as engagement, leadership, and exceptional safety (Disanferdinand, 2018). The short-term cash benefits are reimbursed annually.
The contemporary competitive market influences Maersk’s compensation philosophy in different dimensions. Maersk is committed to attracting workers to join their teams, motivating the staff to achieve their highest performance levels per their skill sets and academic qualifications, and recognizing competitive industry pay to hire and retain existing workers. The company mainly deals in relationship building and sales. Therefore, human resource managers must execute incentive-based remuneration because the workers would recognize that they will be compensated for extra efforts and exemplary performance (Disanferdinand, 2018). In addition, the market dy...