任何企业成功的主要因素都是薪酬。薪酬计划不被认为是一个战略性的商业计划。但是薪酬对公司的底线有很大的影响，激励和留住员工，招聘员工使得薪酬成为公司成功的一个非常重要的因素(Saunders, Mann and Smith, 2009)。
与其他组织相比，向员工支付薪酬的组织水平被称为外部竞争力。如果一个组织想成为一个更有能力的劳动力，那么它应该提高工资水平(Zingheim和Schuster, 2007)。工资水平的提高肯定会增加总劳动力成本，但它也有助于提高单位劳动力成本(Wei, Frankwick and Nguyen, 2012)。有一个关于效率工资的理论，这意味着如果员工的工资高于市场水平，就会激励员工(Haider, Sadiq和Tesfamariam, 2014)。
许多组织过去都遵循市场驱动的薪酬体系，这意味着一个组织付给员工的薪酬是其竞争对手付给员工的(Chi and Gursoy, 2009)。有些组织不遵循这一制度，而是把他们的工资水平定得比竞争对手高。这样做是为了得到最好的申请者(Sarin和Mahajan, 2001)。这应该是一个重要的关注，如果他们想要与外部市场竞争，组织必须支付他们的员工这样他们才能留住他们的员工和吸引更多的申请人。如果员工觉得自己的工资不够高，那么他们更有可能离开公司(Lyons and Ben-Ora, 2002)。要在世界经济中具有竞争力，一个组织必须以合理的价格提供商品和服务，并保持控制劳动力成本(Saunders, Mann and Smith, 2009)。一个组织如何在市场上竞争，它应该存在于商业策略中。例如，他们可以选择价格竞争，或者他们可能更喜欢根据产品或服务来区分自己，他们甚至可以决定细分市场，只关注特定的买家群体(Wei, Frankwick and Nguyen, 2012)。最重要的是了解竞争。
组织目标、组织策略和组织文化应该与公司的奖励制度相一致，这是需要记住的重要一点(Saunders, Mann and Smith, 2009)。如果员工完成了公司的目标，那么他就可以获得奖励，这将增加他的工资，这个概念属于战略薪酬(Chi and Gursoy, 2009)。保留员工、招聘新员工和激励员工对公司的薪酬有很大的影响。薪酬策略对组织及其绩效有直接影响(Lyons and Ben-Ora, 2002)。当一个组织正在形成其薪酬结构，那么外部竞争力和内部对齐应该是综合的。
The main element for the success of any business is compensation. Compensation plans are not considered as a strategic business initiative. But there is a great impact of compensation on a company
s bottom line, motivating and retaining people, recruitment of staff has made compensation a very important element for the achievement of companys success (Saunders, Mann and Smith, 2009).
The level of organization that pays to their employee as compared to the other organization is known as external competitiveness. If an organization wants to be a better competent workforce then it should improve the pay level (Zingheim and Schuster, 2007). Increase in the pay level will surely increase the total labour cost but it also helps in the improvement in the labour cost per unit (Wei, Frankwick and Nguyen, 2012). There is a theory of efficiency wage, which means that if employees were paid more than market level it would motivate employees (Haider, Sadiq and Tesfamariam, 2014).
Many organizations used to follow the market driven pay system, which means that an organization pays what his competitors are paying to their employee (Chi and Gursoy, 2009). Some of the organizations are of a type which does not follow this system and instead sets their pay level higher as compared to their competitor. This is done to get the best applicants (Sarin and Mahajan, 2001). It should be an important concern for the company if they want to compete with the external market, the organization must pay their employee in such a way so that they can retain their employees and attract more applicants. If an employee feels like he is not being paid enough then they are more likely to leave that organization (Lyons and Ben-Ora, 2002). To be competitive in the world economy an organization must supply goods and services at a reasonable price keeping in control as well as the labour cost (Saunders, Mann and Smith, 2009). How an organization is going to compete in a market place, it should be there in business strategies. For example, they can choose to compete on price, or they may prefer to differentiate themselves based on products or services, they could even decide to segment the market and only focus on a particular group of buyers (Wei, Frankwick and Nguyen, 2012). The most important key is to understand the competition.
Organizational goals, organizational strategy and organizational culture should be aligned with the reward system of the company, which is an important point to be remembered (Saunders, Mann and Smith, 2009). If an employee completes the goal of the company, then he can earn an incentive, which would add in his pay and this concept comes under the strategic compensation (Chi and Gursoy, 2009). Retaining employees, recruiting new employees and motivating the employees of the company get highly affected by compensation. There is a direct impact of the compensation strategy on an organization and its performance (Lyons and Ben-Ora, 2002). When an organization is forming its pay structure then external competitiveness and internal alignment should be integrated.