Organization Ability to Pay

Question

What do you mean by Organization’s Ability to Pay?

Answer 1

This is a major affecting factor in determining wage and salary structure of an organization. Financial position and soundness of an organization can put it in a position to offer attractive compensation package. Some of the reputed economically sound organizations are offering good compensation package and thereby successful in obtaining and maintaining talented workforce. Good compensation package helps in attracting and retaining quality talent in an organization. Generally wages in most of the organization decide through collective bargaining and, organization’s ability and capacity to pay attractive wages depends upon over all financial soundness and economic condition of an organization.