Back
 JHRSS  Vol.4 No.3 , September 2016
Strategic Compensation as a Factor of Attraction for Students Graduating in Business Administration: A Brazilian Case
Abstract: This paper aims to identify the most attractive compensation strategies to students about to complete their undergraduate degree in Business Administration at the Federal University of São Carlos (UFSCar). Thus, it seeks to meet the substantial and growing demand for business management professionals by the productive sectors in the Sorocaba metropolitan area, São Paulo State, Brazil. Strategic compensation systems involve a balanced combination of different forms of compensation in order to achieve three main goals: to attract, retain, and motivate employees, in alignment with organizational goals. In Brazil, this practice was encouraged by the creation of Law No. 10.101 on December 19, 2000, which regulates employees’ profit sharing and company performance. The several existing compensation strategies must be tailored within the regional compensation practices, as market practices are parameters for determining the compensation mix in companies. The research method used was a survey to be a procedure for collecting primary data from individuals in line with the descriptive nature of the research. Data were collected through a questionnaire administered to students, using the Likert scale, whose measure was the degree of importance given by respondents to the surveyed items. The scale ranged from 1 to 5, where 1 was unimportant and 5 was very important. Based on the research population, the results suggest that the most attractive remuneration types are direct salary and benefits, followed by variable compensation and non-financial compensation.
Cite this paper: Leitão, F. , Silva, J. and Ubeda, C. (2016) Strategic Compensation as a Factor of Attraction for Students Graduating in Business Administration: A Brazilian Case. Journal of Human Resource and Sustainability Studies, 4, 162-175. doi: 10.4236/jhrss.2016.43018.
References

[1]   Albuquerque, L.G. and Oliveira, P.M. (2001) Competências ou cargos: Uma análise das tendências das bases para o instrumental de recursos humanos. Cadernos de Pesquisas em Administracao. http://www.regeusp.com.br/arquivos/v08n4art2.pdf

[2]   Andrade, M.T. (1991) O sistema de recompensa na empresa do futuro. Revista de Administracao de Empresas, 31, 49- 53. http://dx.doi.org/10.1590/S0034-75901991000100007

[3]   Hanashiro, D.M.M., Teixeira, M.L.M. and Zaccarelli, L.M. (2008) Recompensando pessoas. In: Hanashiro, et al. (Org.), Gestao do fator humano: Uma visao baseada em stakeholders, Saraiva, Sao Paulo, 176-215.

[4]   Jiang, Z., Xiao, Q., Qi, H. and Xiao, L. (2009) Total Reward Strategy: A Human Resources Management Strategy Going with the Trend of the Times. International Journal of Business and Management, 4, 11. http://dx.doi.org/10.5539/ijbm.v4n11p177

[5]   Rodrigues, J.M. (2006) Remuneracao e competência: Retórica ou realidade? Revista de Administracao de Empresas, 46, 23-34. http://dx.doi.org/10.1590/S0034-75902006000500002

[6]   Wood Jr., T. and Picarelli Filho, V. (2004) Remuneracao Estratégica: A nova vantagem competitiva. Atlas, Sao Paulo.

[7]   Silva, M.O. (2005) Sistemas modernos de remuneracao. Qualitymark, Rio de Janeiro.

[8]   Lawler, E.E. (2000) Pay Strategy: New Thinking for the New Millennium. Compensation and Benefits Review, 32, 7-12. http://dx.doi.org/10.1177/088636870003200102

[9]   Howards, L.W. and Dougherty, T.W. (2004) Alternative Reward Strategies and Employee Reactions. Compensation and Benefits Review, 42, 179-189. http://dx.doi.org/10.1177/0886368703261273

[10]   Gerakos, J., Ittner, C.D. and Moers, F. (2013) Compensation Objectives and Business Unit Pay Strategy. Chicago Booth School of Business Research Paper, No. 08-24.

[11]   Yanadori, Y. and Marler, J.H. (2003) Strategic Compensation: Does Business Strategy Influence Compensation in High-Technology Firms? CAHRS Working Paper Series, 26.
http://digitalcommons.ilr.cornell.edu/cahrswp/26/

[12]   Oliveira, L.M.B. (2001) Estratégias e práticas de remuneracao utilizadas pelas empresas brasileiras. Organizacoes & Sociedade, 8, 97-108. http://dx.doi.org/10.1590/S1984-92302001000200006

[13]   Trevor, J. (2011) Can Pay Be Strategic? A Critical Exploration of Strategic Pay in Practice. Palgrave Macmillan, London. http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.613360

[14]   Antonietti, R., Antonioli, D. and Pini, P. (2014) Flexible Pay Systems and Labour Productivity: Evidence from Emilia- Romagna Manufacturing Firms. University of Ferrara. http://www.siecon.org/online/wp-content/uploads/2014/10/Antonietti-Antonioli-Pini-283.pdf

[15]   Trevor, J. (2013) From New Pay to the New, New Pay? World at Work Journal, 19-28. https://www.worldatwork.org/futurereward/journal-article.pdf

[16]   Marquart, A., Lunkes, R.J. and Rosa, F.S. (2012) Um estudo sobre práticas de remuneracao estratégica nas maiores empresas de Santa Catarina. Gestao e Sociedade, 6, 4-25. http://dx.doi.org/10.21171/ges.v6i13.1289

[17]   Tropman, J.E. (2001) The Compensation Solution: How to Develop an Employee-Driven Rewards System. University of Michigan Business School and Management Series. John Wiley and Sons, Hoboken.

[18]   Towers Watson (2012) Relatório plano de benefícios no Brasil. Editora 30, Sao Paulo. http://www.towerswatson.com/pt-BR/Insights/IC-Types/Survey-Research-Results/2014/05/pesquisa-sobre-planos-de-beneficios-no-brasil

[19]   Aon Hewitt (2010) Engagement 2.0: Focus on the Right People. Build the Excitement. Preserve the Passion. http://www.aon.com/attachments/engagement_2%200_oct2010.pdf

[20]   Lab SSJ and Clave Consulting (2012) Atributos da marca empregadora.
http://claveconsultoria.com.br/arquivos/LAB_ReportEVP.pdf

[21]   Hair Jr., J.F., Babin, B., Money, A.H. and Samouel, P. (2008) Essentials of Business Research with SPSS 15. John Wiley & Sons Canada, Canada.

[22]   Ufscar (2016) http://www2.ufscar.br/aufscar/auniversidade.php

[23]   Nazir, T., Shah, S.F.H. and Zaman, K. (2012) Literature Review on Total Rewards: An International Perspective. African Journal of Business Management, 6, 3046-3058.

[24]   Barret, G.V. (1991) Comparison of Skill-Based Pay with Traditional Job Evaluation Techniques. Human Resources Management Review, 1, 97-105. http://dx.doi.org/10.1016/S1053-4822(05)80002-6

 
 
Top