Revue algérienne d'économie et gestion
Volume 19, Numéro 2, Pages 275-294
2025-12-12

Hr Performance Indicators And Compensation Policy: Towards An Integrated Strategic Model

Authors : Belhadj Abdelbaki .

Abstract

Abstract: In today's dynamic business environment, Human Resource Management (HRM) is a crucial strategic lever. This article investigates the critical link between HR performance indicators and compensation policy. It argues that a structured HR dashboard, integrating relevant metrics, is fundamental for strategic alignment. Through a theoretical review and an empirical case study at SOMIZ company, the research demonstrates that effective measurement fosters a stronger connection between individual performance and financial recognition. The study highlights a positive correlation between performance scores and salary progression. The ultimate goal is to propose an integrated strategic model that synergizes performance, competencies, and compensation. This model aims to enhance transparency, equity, and motivation. It positions compensation not as a cost but as a strategic investment in human capital. The findings offer valuable insights for organizations seeking to optimize their human resources for sustainable competitive advantage.

Keywords

Keywords: HR Performance Indicators, Compensation Policy, Strategic Integrated Model, HR Dashboard, SOMIZ .