Compensation
ing employees. If they are found to be same, the one at a lower level has his or her pay adjusted upwards while the one at a higher level is allowed to grow but at a significantly slower pace. is a critical cue for ensuring that the organization has employees that are performing with highest possible morale at most times. In different areas, an employees determines his worth and value to a company by the amount of pay he or she receives for the services that they have rendered aside from the duties that he or she is required to accomplish. One major decisive factor is usually the method of compensation.
In the North, the compensation that an employee receives for his or her work reflects their place in the organization and the amount of contributions that they make to achieve its goals. Billy’s Bar-B-Q should thus keep that in mind when selecting its compensation system. Not all employees can fit in one compensation plan so the company would thus have to have strategies on how to reward its employees.
Without making a loss Billy’s Bar-B-Q ought to have as many of its employees as possible in the salaried category. This is plainly because salaried workers are under contract for a given period of time (years) and are guaranteed an annual salary for a given period of time as long as hey do not breach the agreements agreed upon in the contract. These employees also feel their jobs are secure and thus there are no tense moods I the work environment. This leads to nothing but a blissful and relaxed work environment that brings out the best in the employees. Aside from this, salaried workers enjoy a considerably larger amount of money than others. Thus, this means that the salaried workers at Billy’s Bar-B-Q will be motivated as they feel their contributions are highly appreciated.
When Billy’s Bar-B-Q is short on man power and need cheaper and quick help they can always turn to the hourly job as a source of labour. This is primarily because the hourly wage is usually significantly lower than that which a salaried employee is entitled to and earns. The hourly wage also provides the organization with maximum employee utility due to the need of punching clocks when one arrives and leaves. The employees under this further have strict time restrictions and need to report before end of breaks or risk being penalized. Aside from being astronomically cost effective, this reward system is a complete morale killer. This is because the pay is significantly lower and the room for advancements is minimal as the company usually looks first at the salaried employees.
When Billy’s Bar-B-Q comes to operation they would benefit most by using the piece rate system. This school of thought is seen from a number of basic reasons. Employees will be constantly motivated by the opportunity to make more money and thus continue providing more to the organization. This in turns boosts both the financial welfare of the organization and the employee. It is also really cost effective as employees only get paid for the work that they have done. This is thus by far a good system for the company due to its win-win nature.
Comparable worth is simply described as the fact that men and women ought to get paid equally when the work that they do involves comparable skills and activities. This has been outlined by the fact that many jobs with segregation have been marginalized along the gender line. Companies often use this to determine the educational and skills; activities and responsibilities of two different rank.
Reference:
Jone J. L. ,(2013). Comparable Worth-Pay Equity. Retrieved from http//:womenhistory.about.com/od/laws/a/comparableworth.html
Lynch P., (2012). 10 Things Every Employer Should Know About Compensation Systems. Retrieved from http://www.businessalignmentstrategies.com/articles/compensation.php
Personnel and Organization policy
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A proper compensation policy is a key factor when it comes to boosting the morale of employees and ensuring that they have a level head to handle tasks presented to them. This also goes a long way in achieving company objectives. Without employees being in a clear state of mind, the human resource that has been set to achieve set company objectives fails in its role to do so. To achieve this, any form of bias compensation leaning towards race or gender ought to be clearly steered away from at all costs. To do this there are a number of guidelines on compensation.
The first one is that the type of position held should be a major decisive factor. This is categorized into four major categories. The first is regular positions that that encompass full time and part time jobs. This level tends to earn more than the others. The other is temporary who are assigned a temporary position or may fill consecutive short term positions. The third is limited term position employee. This kind of employee works for a short agreed upon time and is hired to meet immediate business needs. The final one is an independent contractor. Based on the employees level of expertise and relationship with the employer, appropriate wages are agreed upon.
The other guideline used is a common and almost universal means of determining individuals’ level of pay. This is determining the amount of responsibility that an employee has towards the company. The higher up an individual is in the management chain the higher the pay grade they are also classified in. This is solely because the higher ups have a higher risk in decision makings that affect the organization as a whole. Due to the high risk that the job comes with, they also ought to be properly compensated with the vice versa going for those down the chain of management.
The level of education is also another key factor when determining personnel pay grade. Employers want to keep the most skilled employees with them so as to help the organization grow even further. Each employee takes account for his or her performances at work; and professional development. The employer is not responsible for guaranteeing professional advancements of employees in the organization if it does not warrant any further compensation. However the employer needs to create an amicable environment for further employee development and encourage professional development through continuous and significant rewards.
The other means of determining amount of fair pay due to an employee is through determining his or her work schedule. They are basically divided into two. Those employees who work regular work schedules and those who do non regular work schedules. Regular work schedules involves repeated work hours that are rigid and largely fixed. For example those people who work for 40 works hours every week. The other kind of schedule involves either working on call or summer hours. It goes without saying that the regular employees ought to be compensated more for the same amount of work than the non regular employees.
References:
Staff Compensation Policy. Message posted to http://hr.nd.edu/nd-faculty-staff/forms-policies/staff-compensation-policy/
