Compensation Policy for an Organization


One of the most common change initiatives is change in compensation policy for an organization. Often leaders generate a new assignment to implement new policies for the front line employees such as a change in bonus structure or new policies surrounding the benefits package. The organization usually involves smaller groups first to gradually implement the change. However, in some cases the change can take place for the entire organization all at once which can have dreadful consequences (Cummings, 2000).

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There are several issues that an organization should consider when implementing a benefit change initiative (Palmer, 2022). The organization may not have the resources or the money to openly develop the change initiative. In order to overcome these issues, the company will need to produce a true commitment and be sure that the funds are available for the process. If not, the responsible parties will have difficultly maintaining employee motivation and/ or momentum.

The company will need to explain and inform all employees about any changes that will be up and coming so the employees have the time to embrace the new change (Palmer, 2022). A leadership team that does not involve or back up their decisions will not have the proper support for the change attempt.


Cummings, T., & Worlsey, C. (2000). Essentials of organization development and change. Cincinnati, OH: South-Western Publishing. (Streamlined version of textbook)

Palmer, I., Dunford, R., & Buchanan, D. (2022). Managing organizational change: A multiple perspectives approach (4th ed.). McGraw-Hill Education.



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