Answer:
The relationship between HR planning and organizational compensation strategy is crucial for effective human resource management.
- Alignment: HR planning and compensation strategy must be aligned to support the organization's goals. The compensation strategy should reflect HR planning efforts in attracting, retaining, and motivating employees while ensuring fairness.
- Attracting and Retaining Talent: HR planning identifies talent needs, and the compensation strategy should offer competitive packages to attract and retain high-quality employees.
- Performance Management and Incentives: HR planning sets performance expectations, and the compensation strategy links performance management with rewards, such as bonuses or incentives tied to individual or team performance.
- Market Competitiveness: HR planning analyzes the labor market, and the compensation strategy ensures the organization remains competitive by offering attractive salaries and benefits.
Step-by-step explanation: