The effect of globalization and the rapid change of technology had permanently changed the landscape of business environment. The unprecedented intensity and competitive market pressure had resulted in companies devising and adopting new methods and strategies in order to survive and possibly to thrive. In order to compete at the same level field as the other global players in the challenging new economy, organisations are forced to ensure that the level of skill, competency and productivity of their employees are equivalent if not better than their competitors globally. The above challenging situation clearly requires a dynamic compensation system whereby the wage model of each enterprise shall be business driven and directly reflects the company and individual performance to ensure organisation sustainability and individual motivation.