Impact of Business Compensation: its Influence on the Attraction and Retention of the New Generations

Abstract

Currently, in companies, it is important to understand that the management of human talent is a key factor to guarantee the productive efficiency of the organization. Business compensation is a strategy that directly influences the relationship between the employee and the company; since its purpose is to motivate and encourage employees to obtain better performance from them. The objective of this study was to determine the influence that labor compensations have on the attraction and retention of multigenerational employees (X, Y, Z), for which a field investigation was applied through surveys of the economically active population (PEA), by generations, belonging to the Ambato canton, province of Tungurahua. The results showed that companies today do not present human talent management policies or use ambiguous compensation system models in relation to the potential and demands of the new generations, which means that the objectives of the collaborators are not aligned with those of the company. Therefore, it is important as organizations to be at the forefront of the work and personal expectations of employees, to establish formal management methods that involve the different generations, since the productive results of the company depend on the degree of satisfaction and cohesion that the collaborators have with it.