Compensation Departments Describe the three main goals of compensation departments Compensation departments are mainly responsible for three main functions in a company; attract, motivate and retain employees. These are key elements towards the continuous functioning of any institution. Employees or workers are the main pillars that hold a firm and without them, the company will definitely close or become obsolete.
The three main goals of a compensation department are internal consistency, market competitiveness, and recognition of individual contributions. Internal consistency defines the relative value of each job among all jobs within a company.
This ordered set of jobs represents the job structure or hierarchy. Companies rely on a simple, principle for building internally consistent compensation systems. Compensation professionals use job analysis and job evaluation to achieve internal consistency. Market competitiveness plays a significant role in attracting and retaining the most qualified employees.
Compensation professionals build market-competitive compensation systems based on the results of market surveys and compensation surveys. A strategic analyses permit business professionals to see where they stand in the market based on external and internal factors Martocchio, pg.
Recognizing individual contributions helps determine pay structures. One may have more knowledge or more experience and because of such disparity that is why HR professionals assign pay grades or assign pay grades within pay structures for a job.
Companies understand this want to compensate the employee for what they contribute to the job. Pay grades are in ranges that allow for the minimum qualifications to the highest and also allows for incentives when dealing with a prospective employee and their qualifications Martocchio, pg.
In a competitive labor market, companies attempt to attract and retain the best individuals for employment partly by offering lucrative wage and benefits packages. Companies that operate in product markets where there is relative little competition from other companies tend to pay higher wages because these companies exhibit substantial profits.
Union representation will continue to decline in the future and this decline may be attributed to the reduced influence of unions.
Describe when subjective performance evaluations might be better or more feasible than objective ratings. Managers rely on objective as well as subjective performance indicators to determine whether an employee will receive a merit increase and the amount of increase warranted.
Subjective might be better when supervisors wants to periodically review their employees individual performance. By using subjective performance will help to evaluate how well each worker is accomplishing assigned duties relative to established standards and goals.
Objective rating typically defies interpretation: For that reason, some employers use purely objective measures for employees who have repetitive or entry-level jobs performance is a function of doing or not doing some specific action, or in meeting per-product or per-service productivity total Describe under what conditions profit sharing plans are not likely to motivate employees.
Employees find that profit sharing plans are not likely to motivate them because they do not see a direct link between their efforts and corporate profits. Employees may be given a range of investment choices for their accounts, including stocks or mutual funds. Since the company have to decide to match a certain percentage of such contributions.
In addition, many k accounts have provisions that enable employees to borrow money under certain conditions. The other reason why profit sharing plans does not motivate employees is because this plan establish a vesting period and a limit access to the funds.
Less strict rules may allow for withdrawals under certain conditions, such as financial hardship or medical emergencies. Nevertheless, whatever rules a company may adopt for its profit-sharing plan, such rules are subject to IRS approval and must meet IRS guidelines.
Based on your knowledge of pay-for-knowledge pay concepts, describe three jobs for which this basis for pay is inappropriate and explain why.
The three jobs which this basis for pay is inappropriate are librarians, electricians, and dietitians. Librarians bring order to and guide users through the vast array of information available. The size and character of the library determine whether Librarians perform all phases of the work or engage in a specialty.
A librarian needs to find ways to structure or classify multiple pieces of information. Actively looking for ways to help people and help them to understand written sentences and paragraphs in work-related documents.
Electricians tackle a range of projects from wiring new homes and offices, rewiring existing structures to helping providing installation services for new solar panels.Define and discuss profit-sharing plans and also the advantages. Additionally, critics of profit sharing plans maintain that these plans do not motivate employees to perform at higher levels.
Under what conditions are profit sharing plans not likely to motivate employees? For that reason, some employers use purely objective measures for employees who have repetitive or entry-level jobs performance is a function of doing (or not doing) some specific action, or in meeting per-product or per-service productivity total Describe under what conditions profit sharing plans are not likely to motivate employees.
Setting the Stage for Strategic Compensation and Bases for Pay - Download as Word Doc .doc /.docx), PDF File .pdf), Text File .txt) or read online. Scribd is the . 4 Describe Under What Conditions Profit Sharing Plans Are Not Likely To Motivate Employees.
Motivation 1. Describe what is meant by lausannecongress2018.com types of non-financial reward might a company use to motivate employees?Motivation is atracting a person to do something because he/she wants to do it.
Setting the Stage for Strategic Compensation and Bases for Pay By: Cynthia L. Chamberlain Bus Compensation Management Strayer University – Professor K. Araujo Week of January 23, Describe 3 main goals of compensation departments.
Define and discuss profit-sharing plans and also the advantages. Additionally, critics of profit sharing plans maintain that these plans do not motivate employees to perform at higher levels. Under what conditions are profit sharing plans not likely to motivate employees?/5(K).