Compensation for Technical Professionals in the Knowledge Age

Abstract

OVERVIEW:Knowledge has always been a central feature of R&D environments, but it is now an increasingly important resource for the entire organization. It is clear that many existing structures and routines are inadequate with regard to knowledge-intensive organizations; organizing models of the future will be more holistic, process-oriented and tailored to the exigencies of knowledge work than those of the present. Compensation practice will be an important element in the organizational infrastructure. Companies need to devise new compensation and reward systems that will be comprehensive, integrated with other organizational arrangements, and consonant with a new order of thinking that subordinates pay, bonus and incentive schemes to cultural, sociopolitical and work challenge issues.