The dilemma of payment decisions adoption has long been the subject for research. Scholars have long aimed to find out which strategy is more effective for employee motivation and achieving competitive advantages by companies. In the following essay, the “best practices” strategy will be evaluated against the “best fit” strategy. Overall, “best practice” is superior to “best fit” since the evaluation of data suggests that this approach is more effective for employee motivation.
The best practices strategy implicates the usage of the most attractive compensation packages and thus, it offers an organization a chance to be highly competitive when it comes to the choice of the top-performing workers. According to Kim, Farmer, and Porter (2013), the best-pay practice well implements to any business strategy because it allows an organization to offer irresistible conditions and terms to potential candidates. Gerhart, Milkovich, and Newman (2014) also state an opinion that the best-pay practice “can be applied universally across situations” (p. 57). A similar idea appears in the article by Ananthram, Nankervis, and Chan (2013). These authors state that the best-pay practice is all-embracive at any business context due to the fact that the salary is considered the first motivational factor for any employee. In all, a growing number of authors believe that the best practice approach is more effective for any type of organization by reason of having the best motivational influence on employees. However, there are opponents of this position who argue that the best fit approach is more rational from the economical point of view. They endeavor to proof that in some contexts, an organization may be equally effective even if average workforce is employed. They also narrate the experience of organizations who managed to attract superior performers with their company mission and other factors rather than payment (Kim et al., 2013). These authors have the clue to a certain degree but their logic does not match the logic of the majority of superior-performing workers.
In conclusion, the best practice approach is superior to the best fit approach by virtue of being universal for any business context. Researchers have found that for the majority of workforce, competitive salary is the primary variable for making career decisions. Thus, to attract the best-performing staff and create advantages superior to other organizations with the help of this staff, it is crucial to offer the best-pay terms and conditions.
References
Ananthram, S., Nankervis, A., & Chan, C. (2013). Strategic human asset management: Evidence from north america. Personnel Review, 42(3), 281-299. Web.
Gerhart, B., Milkovich, G., Newman, J. (2014). Compensation (11th Ed.). New York, NY: McGraw-Hill.
Kim, J. Y., Farmer, P., & Porter, M. E. (2013). Redefining global health-care delivery. The Lancet, 382(9897), 1060-9. Web.