Stakeholders Compensation System

There are five different stakeholders of a company compensation system and the human resource department provides them within and outside the companies. They are as follow: Employees, line managers, executives, unions, and US government.

Stakeholders is performance-based compensation that focuses everyone in an organization on long-term while providing unlimited compensation opportunities for those who make it happen. This will create a strategic planning and compensation in an organization. (Higgins, 2006)

Employees, are an important part of any organization or company. The company has the capability to change and implement a systematic training program.

Compensation professionals must instruct employees about their training choices and how successful training will lead them to increased their pay and development for promotion and more opportunities to do so.

Line managers, compensation professionals use their expert knowledge of the laws that influence pay and benefits practices to help line managers make sound compensation judgement. They will ensure that there won’t be any discrimination of gender and that both gender will be entitle to similar pay, it will depend the position their in.

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Executives, are professionals when it comes to the employees compensation by evolving and handling complete compensation systems. The executives look at these requirements that these entitlement are met with all compliances are appropriate within the legislation. If not done appropriately and they dishonored the fines are very substantial to the employers.

Unions, is a collective bargaining on terms of employment and reached between employer and employee and it will be managed by the union. Compensation professional are the ones responsible for their pay and benefit and it will be clearly stated in the agreement contract.

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U.S. Government, requires that business and companies are mandated under the employment legislation. The compensation professionals will apply their knowledge and experience and will plan a legally sound pay and benefits. (US Federal Gov., 2011)

In conclusion, the stakeholders of the compensation system is a way of a social insurance that insures that injured employees will have medical care and benefits that will cover them and their families. Each stakeholder have their own beliefs and hold their own standards. These compensation professionals will focus on internal and external pay as well as creating structures that recognize the employees that are related to a company stakeholder. References

Martocchio, J.J. (2012). Strategic Compensation: A Human Resource Management Approach (7th ed.) Upper Saddle River, NJ: Prentice Hall.
Mike Higgins & Associates, Inc. (2006). Stakeholders: Give Employees a Stake in their Own Success. Retrieved from:
U.S. Federal Government (2011). Performance management. Retrieved from:

Updated: Jul 06, 2022
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Stakeholders Compensation System. (2016, Mar 08). Retrieved from

Stakeholders Compensation System essay
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