Flexibility to Manager to play within range given the budget & guidelines  

Compensation

Compensation design, its fulfillment and servicing is core to driving employees' performance & capabilities. An execution-focused compensation structure will reward both on goals & leadership. It will provide a reasonable differentiation across levels of performance. It will work on near-term to long-term retention and consistency of performance.


Flexibility to Manager to play within range given the budget & guidelines


Providing the hiring manager a sufficient playing field to decide the compensation of the new hire can be an effective hiring tactic. Empowering the recruiter in this manner can drive him/her to go the extra mile to get the right candidate.

Allowing the hiring manager room for flexibility in deciding the compensation package of a new hire can significantly improve the employee satisfaction levels. If the manager is given a pre-defined budget and the guidelines which he can follow to customize the package being offered to the new hire, it can boost the employee engagement since the new employee joins on a more satisfied/happy note. It also imbibes a greater sense of control and authority in the hiring manager and he/she is inspired to go the extra mile to pick the right candidate. In execution of this practice, it is important that the HR department carefully explains the Do’s and Don'ts to the hiring manager since hiring decisions do impact the long term performance. Whether or not an organization achieves the desired performance excellence is also affected by the kind of employees the organization hires.