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The “High-Road” Approach to Compensation and Benefits Practices: Enhancing Competitive Advantages
Abstract
High-road approach organizations deploy commitment-based / high performance working HRM systems and see employees as a sales driver rather than a cost driver They have a long-term perspective and make more investment in their HR by paying them above the industry average and implement policies and practices that focus on employee engagement, satisfaction, and service orientation to enhance organizational performance. This research views compensation and benefits practices through the lens of a high-road approach and provides various frameworks to emphasize the role of the high-road approach in enhancing employee commitment, engagement, loyalty, productivity, and retention thus, leading to healthier organizational growth. The research provides various illustrations to explain how companies have initiated a high-road approach to compensation and benefits practices and improved their overall performance. Research also discusses the barriers to high-road approach adoption and identifies prerequisites for its successful implementation.
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