Essay about Fair and Equitable Compensation - 1766 Words

In exchange for job performance and commitment, an employer offers rewards to employees. Adequate rewards and compensations potentially attract a quality work force, maintain the satisfaction of existing employees, keep quality employees from leaving, and motivate them in the workplace. According to research conducted by the Corporate Executive Board, the most important workplace attribute is compensation, (The Increasing Call for Work-Life Balance, 2009). Not only must wages be set high enough to motivate and attract good talent, they must also be equitable—that is, the wage must accurately reflect the value of the labor performed. Fair and equitable compensation is a crucial factor in the success of an organization. It is important†¦show more content†¦For job-based compensation, human resources must conduct a systematic job analysis. Each job must be carefully examined to list the necessary tasks and actions, identify skills and abilities required, and establish de sirable behaviors for successful completion of the job (Dessler, 2011). The traditional method of compensation is a base pay system. This base pay system is the one that most people are familiar with. A base pay system involves set pay levels (wage or salary) with regular increases. Increases can be given for a variety of reasons, but are typically given for promotions, merit increases, or cost of living increases. The Hay Group points out that there is less distinction today between merit increases and cost of living increases: Because of the low levels (3 to 4 percent) of salary budget funding, most merit raises are perceived as little more than cost of living increases. Employees have come to expect them (HayGroup, 2012). Determining base pay is directly linked to the organization’s compensation philosophy. Having a clear understanding of what role the position plays in the organization, including the complexity of the required responsibilities and tasks, is factored into the equation along with market data. Organizations that take the time to ensure they have factored in all of the following components will be more effective in managing their competitiveness externally as well as their consistency andShow MoreRelatedFair and Equitable Compensation Essay969 Words   |  4 PagesFair and Equitable Compensation MGMT 365 04/01/2012 MGMT 365 04/01/2012 Fair and Equitable Compensation Compensation is an important factor in the business world; both for employees and employers. Employees are trying to get what they feel they are worth. On the other side employers are trying to get quality workers at the best price they can; this is so they can increase their bottom line. Depending on which side you are on, the views of what is fair and equitable varies. The key is toRead MoreHuman Resource Practices With Business Goals1363 Words   |  6 Pagesbusiness goals with employee motives, a well-rounded compensation plan precedes attainment of these business goals(Martocchio 3). As can be seen by this statement, compensation is a major concern for all players in the business world today. As a matter of fact, if a company fails to properly manage their compensation package they will find themselves being left behind by the competition. In particular, what exactly does being left behind in compensation and benefits mean? It stands that other companiesRead MoreThe Determinan ts Of Employee Performance Essay877 Words   |  4 Pages(Hawaini, Gabriel and Viallet 2007). Employee Compensation is the same thing as employee reward. While employee reward is about how people are rewarded in accordance with their value to the organization, employee compensation according to Rynes, S. L., Gerhart, B., Minette, K. 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By exploring beyond a few sports, or select sports programs, his notion of paying students to play for collegeRead MoreLiterature Review : Employee Retention1187 Words   |  5 Pagesstrategies implemented to create more positive organizational climates for the purpose of retaining valuable employees include equitable remuneration that reflects performance, sufficiently challenging and interesting work, as well as opportunities for training and career dev elopment. There are seven main factors that can enhance employee retention. These factors are compensation and appreciation of the performed work, provision of challenging work, chances to be promoted a pleasant atmosphere withinRead MoreBenefits And Benefits Of Employee Benefits Essay1422 Words   |  6 PagesDoyle offers this, â€Å"Employee benefits are non-salary compensation that can vary from company to company. Benefits are indirect and non-cash payments within a compensation package. 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This is a complex issue for several reasons: limited funding from governmental agencies, unwillingness for some law enforcement personnel to answer questions that they perceive may prejudice management against them, and the inabilityRead MoreEquity Theory1421 Words   |  6 Pagesperceptions of fair/unfair distributions of resources within interpersonal relationships. Equity theory is considered as one of the justice theories; it was first developed in 1962 by John Stacey Adams, a workplace and behavioral psychologist, who asserted that employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams, 1965). The belief is that people value fair treatment whichRead MoreThe New York Hotel And Motel Trades Council Essay1003 Words   |  5 Pagesand other related businesses represented under contract to this union. Employees who have a membership with this union enjoys new and fair representation under a very diverse organizational culture. The association provides incredible union contract for hotel workers in the environment guaranteeing excellent wages, benefits, working conditions, and standard of fair treatment. The pay policy gives employees entitlement to substantial paid time off, full-time employees receiving holidays, personal daysRead MoreThe Ethical Approach Of Bob Bowlsby1484 Words   |  6 Pages The ethical approach that Bob Bowlsby is utilizing in his argument is the justice approach. Bowlsby’s comment deals with fairness. His opinion is that it is not fair for football and male basketball student athletes to receive a salary while female and male student Olympic sport athletes who partake in swimming, wrestling, and lac rosse, for example, do not receive the same benefit (Strickland Moody, 2014, p. C-422). The justice approach is based on fairness, equity, and impartiality as it derives