Strategic compensation system and workplace conflict

Abstract

This dissertation aims to study the practice of remuneration based on skills and competencies and how this model can bring conflict in the work environment The work was carried out using a quantitative analysis approach to resolve problems based on existing research by well-known newspapers. On the basis of all the academic references used for this research, plus the results of the research carried out with professionals working in different fields in companies of different segments, it was possible to explore the aims and objectives of this research project and to answer to the objectives of this research. The study concluded that the advantages envisaged in the literature, such as the alignment of remuneration schemes with the strategic goals of the organization and the stimulation of the production of individual skills and competencies, were confirmed in the findings. On the other hand, concerns have been identified which, despite being foreseen in the literature, such as the appearance of conflicts over remuneration and its metrics, are something that businesses are still unable to handle because they are due to cultural aspects. It is also recognized that many organizations do not have a budget to administer a remuneration scheme based on skills and competences, and many have an allegiance to the type of functional remuneration based on the role and its attributions.