The compensation strategy is extremely important as the right compensation strategy helps to build the effective and competitive organization globally and the wrong setting of the compensation strategy, which does not fit with the needs of the organization and with the HR and Business Strategies, can destroy the organization within several years and the organization suffers from decreased performance and not utilizing the full potential of employees. The compensation strategy defines the pay market, the organization follows, the desired position on the pay market and the way, how the desired level and position on the pay market will be achieved. The compensation strategy defines the basic compensationn components used in the organization and the standard rules applied to each compensation component The compensation strategy has to be in line with the business and HR Strategies as the compensation of employees is aligned with the expectation of the top management fronm them. The compensation strategy does not change often as the compensation principles cannot be changed within few days.

1. Discuss the general compensation strategies used by any two companies with worldwide operations.

2. Compare the compensation strategies of two worldwide companies as stated in answer above with the compensation strategies of your organization.