Introduction
The DEOMI is the acronym for Defense Equal Opportunity Management Institute that is a conglomeration of military services school with a base in Patrick Airbase in Florida. The institution offers off-site courses with emphasis on equal opportunity, intercultural communication, and gender, ethnic, racial and pluralism both civilians and military personnel working with the American armed forces. DEOMI was founded in 1991 as a response to the Civil Rights Movements of 1960s. Initially, the institution carried the name Defense Race Relations Institute. It was set up to find mechanism of solving the racial problems that bombarded the armed forces of the United States. The organization was later expanded to delve into all issues affecting the military arising from differences in cultures, opinions, and sexuality. In 1979, the organization's name changes to the current name Defense and Equal Opportunity Management Institute ( DEOMI, 2012).
Like all Federal agencies, DEOMI employees the Thrifts Saving Plan compensation model which is also called the Federal 401 (k) plan. The 401K is a brilliant plan that increases an employee’s future retirement plan by using a reliable and low cost long-term savings module. This model allows Federal employees and members of the military can contribute upto $ 15,500 in a tax deferred plan for those younger than 50 years. Workers over 50 years can contribute up to $ 20, 500. Like a 401 (k) plan, the Thrift saving plan system allows the contributors to grow without paying taxes until the money is withdrawn at retirement. However, if the money is withdrawn before the age of 59, the contributor loses 10 percent of the total sums to fines. There are a few exceptions to this rule, and this mainly depends on the arrangements with the seniors. At the age of 70 and ½, mandatory withdrawals begin. Military personnel working for DEOMA are entitled to the traditional pension plan that guarantees certain pensions in retirements based on years of service and salary. Employees that were hired after or on Jan.1 1984 are covered by the federal government’s employee retirement plan. According to this law, the federal agency, in this case DEOMA must contribute 1 percent of the salary per year to the employees TSP program whether or not the employee contributes (IHC Financial Group, 2012). If the employee contributes up to five percent, then the employer is obliged to match up to the level. Employees that are engaged in combat or any other hazardous duty are exempt from taxes for benefits got while on the hazardous or combat missions (United States Secretary of Defense, 2012).
Since May 2012, the DEOMI has made it optional for employees either to take the traditional Thrift Saving Plan or to join the wagon of another option called Roth Funding option. The Roth Funding Option allows federal employees and members of the armed forces to contribute money to the TSP after taxation. In this system, the qualified withdrawals are tax-free. The system allows employees to feel free to contribute to the TSP program if they wish so. Even though the traditional Thrift Saving Plan and Roth TSP both offer substantial benefits to DEOMI employees, the Roth TSP program provides benefits that supersedes what the traditional TSP offers.
First, the ROTH TSP provides an after tax contribution while the traditional TSP offers a pre tax contribution. Similarly, the TSP defers taxes on contributions, eventually dealing with the taxes when the money has been distributed. This activity reduces the contributor’s gross income in the tax year. The Roth TSP is after-tax money that is included in the gross income after the taxation year of contribution.
Market Consistent Compensations Systems
Masters (2012) writes that strategic human resource management is essential for a company that is hiring, firing, and compensating. A company must ensure that it has a human resource management unit that is up to the task and can meet the needs of its employers even as the company aspires to meet the company’s needs and maximize profits. Terry Masters (2012) argues that sound human resource management is beneficial to the company in terms of reducing cost and handling employee’s remunerations, compensation and termination of employment. Companies strive to meet the needs of its employers cultivates a work environment that is both convenient and productive. It is in order for a company to create an environment that encourages its workers success. A pleasant work environment increases productivity of workers.
In addition to creating a healthy work environment, a company should have a recruitment strategy that looks for the most promising applicants. Testing the potential of the future workers requires that prospective employees be subjected to tests, skits, as well as situations that assist in determining their morality and ethics of work. A successful recruitment system reduces chances of firing thus reducing the costs that may arise because of such situations.
According to Condrey (2010), a company must also be familiar with the laws that apply to issues in the line of compensation, pay, and benefits. Knowledge of the law is a key essential in making a company avoids unnecessary legal cases and fines that may arise out of compensation battles. It is noteworthy that the human resource department is aware of laws on issues such as immigration, minimum wage, legibility to compensation and insurance among others.
Liberty University’s Human Business Management Resource (2010) advises that when a company is hiring it must also be aware of the remunerations of the individuals of individuals based on their qualification. The qualification of an individual determines how much salary they are entitled to and compensation that they receive. However, job scope, location of the company and the cost of living dictate how much an individual can earn. While jobs that require higher training and experience attract more earnings, jobs that require less training equal to less pay. Individuals doing unskilled jobs are subjects to replacement if they can do their jobs properly since replacement is easily available.
Current Pay Structure
Measurements of appraisals performance premise on the belief that improving work quality from the worker leads to an increase in pay (Taylor, 2007). Cushway (2009) writes that the performance appraisal is something that happens continuously at work. Performance appraisal includes assessing how workers are performing and rewarding them for competence. Effective appraisal drive performance includes aspects such as reviewing experience, helping workers improve, identifying, and developing needs, improving communications and allowing employees to express their feelings. The focus of appraisals drive argument is that individual’s number one motivational factor is money. Coen & Jenkins refute the argument that money increments insinuate performance. According to them, pay for work incentives have unintended side effects that are not often pleasant. These side effects usually undermine the company’s real objectives and goals. “The bottom line is that any approach that offers a reward for better performance is destined to be ineffective (p.248).
DEOMI does not emphasize money as a primary motivator. Instead, the company gives fair compensation while paying looking into experience and quality. DEOMI values their workers happiness which according to company, comes from intrinsic rewards of fun, growth, teamwork and challenges and accomplishing them. The agency strives to meet the needs of its employers cultivates a work environment that is both conducive and productive. In order for the company to create an environment that encourages its workers success, the company employs the policy of servant leadership. Under this arrangement, leaders view their subordinates as the actual customers. By encouraging servant leadership, the company improves self-esteem of the workers, encourages listening, as well as facilitating problem solving. The company leaders also travel to ensure that these standards are uniform.
Recommendations
In addition to creating a healthy work environment, DEOMI must have an excessive compensation for its employs that boost morale thereby encouraging striving for more. The company should promote workers from within to encourage vertical mobility amongst workers. Moreover, the company should offer multiple trainings to its employs, so that employs are not only efficient but also able to rise from the position that they hold once they are qualified. In many ways, DEOMI should go against Liberty University’s Human Business Management Resource (2010) advice that when a company is hiring it must also be aware of the remunerations of the individuals of individuals based on their qualification. The qualification of an individual determines how much salary they are entitled to and compensation that they receive. In the case of DEOMI, qualification should be a reward on how much one works.
References
Coens, T., & Jenkins, M. (2010). Abolishing Performance Appraisals. Chicago, USA: ReadHowYouWant.com.
Condrey S. (2010), Handbook of Human Resource Management in Government. San Fransisco, CA: Jossey-Bass Publishers
Cushway, B. (2009). The Employer’s Handbook: An Essential Guide to Employment Law, Personnel. London, UK: Kogan Page Publishers.
Liberty University. (2010). Busi342 : Human Resource Management (Custom). California: McGraw-Hill, Inc.
Masters, T. (2012). What Factors Affect Human Resource Management Salaries? [Wisegeek]. Retrieved April 28, 2012, from http://www.wisegeek.com/what-factors-affect-human-resource-management-salaries.htm
Taylor, D. (2007, May 29). Competency frameworks, Learning and Development and the CIPD [People and Performance, Learning and Measurement, Human Capital and Talent Management]. Retrieved June 10, 2012, from http://donaldhtaylor.wordpress.com/2007/05/29/competency-frameworks-learning-and-development-and-the-cipd/
IHC Financial Group. (2012). Traditional TSP Versus Roth TSP Participation: What Are Some Considerations and Issues? Retrieved August 24th, 2012 http://federaldaily.com/webcasts/2012/05/ihc-feddailytsp-053112.aspx?tc=page0]
United States Secretary of Defense ( 2012) Latest Military Compenstation News. Retrieved August 24th, 2012 http://militarypay.defense.gov/
DEOMI ( 2012). Home. Retrived, 24th, 2012. http://www.deomi.org/
