[ HRM ASSIGNMENT ]

NAME - NIKHIL SINGH

ROLL NO - 20051483

SECTION - F12
 NAME - NIKHIL SINGH
ROLL NO - 20051483
SECTION - F12

HRM ASSIGNEMENT

Question - Elaborate on the compensation trends in the 21st-century

organization. You need to give some examples of specific companies

Ans: Compensation trends in 21st-century organizations have evolved significantly in

response to changing business landscapes, workforce demographics, and economic
conditions. Some of the key compensation trends and provide examples of how specific
companies have adapted to these trends:

1) Total Rewards Approach:

Trend: Companies are moving towards a holistic approach to compensation that

encompasses not only base salaries and bonuses but also benefits, perks, and career
development opportunities.

Example: Google (now part of Alphabet Inc.) is renowned for its comprehensive total
rewards approach. They offer competitive salaries, stock options, free meals, on-site
healthcare, and even on-site massage therapy.

2) Performance-Based Pay:

Trend: A growing emphasis on tying compensation to individual and company performance,

often through performance bonuses, profit-sharing, and stock options.

Example: Tesla, led by Elon Musk, uses stock-based compensation heavily. Musk himself has
one of the most substantial performance-based compensation packages in corporate
history, which rewards him based on meeting certain stock price and operational
milestones.

3) Remote Work Compensation Adjustments:

Trend: The rise of remote work has led to adjustments in compensation to reflect
differences in living costs across regions.

Example: Facebook (now Meta Platforms, Inc.) announced plans to adjust employee
compensation based on their location, acknowledging that living costs vary significantly from
one area to another. They also introduced location-based pay for new hires.
4) Inclusive Compensation Practices:

Trend: A focus on pay equity and diversity in compensation to address gender and racial pay
gaps.

Example: Salesforce conducted a pay equity audit and committed to spending $6 million to
close any gender pay gaps. They have also publicly shared their pay equity data and
methodology to promote transparency.

5) Benefits and Well-being:

Trend: Increasing investment in employee benefits and well-being programs, such as mental
health support, flexible work arrangements, and enhanced parental leave.

Example: Microsoft offers its employees a range of benefits, including paid parental leave
and resources for mental health support. During the COVID-19 pandemic, they implemented
additional measures to support employee well-being, including flexible work hours.

6) Variable and Gig Work Compensation:

Trend: The gig economy and freelancing have become more prevalent, leading to a rise in
variable compensation models.

Example: Uber, a prominent player in the gig economy, offers drivers the opportunity to
earn income on a flexible schedule, with compensation directly tied to the number of trips
they complete and customer ratings.

7) Skill-Based Pay:

Trend: Companies are focusing on paying employees based on their skills and expertise
rather than traditional job roles.

Example: IBM has adopted a skill-based approach to compensation, offering additional pay
and career advancement opportunities to employees who acquire new skills and
certifications.

8) Environmental, Social, and Governance (ESG) Performance Incentives:

Trend: Some companies are incorporating ESG criteria into their compensation structures,
linking rewards to sustainability and ethical performance.
Example: Unilever, through its Sustainable Living Plan, ties executive compensation to
sustainability goals, demonstrating a commitment to responsible business practices.

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