The typical form of remuneration is a base pay for standard hours worked. Base pay is the rate for the job and is is, in most cases, the largest part of employees’ reward (Armstrong, 2016). Employers usually pay extra for working longer hours (overtime rates), unusual hours (for example, weekends and night shifts), and for working in particularly difficult conditions (for instance, there can be some supplements for noise, handling heavy loads, risks). These additional payments usually result from the obligations of collective agreements or laws. The impact of those two elements is therefore particularly important and this deserves to be addressed.
1.1. Minimal influence of French legislation
Companies should firstly pay attention to local conditions as law and regulations when deciding to locate and operate in a foreign country (Schuler and Rogovsky, 1998; Florkowski and Schuler, 1994). The impact of the French legal environment can be seen as minimal (Barzantny and Festing, 2008). An important flexibility is given to employers, and France is considered as a moderately regulated country in Europe, as opposed particularly to Ireland which is in the less regulated group (Nikandrou et al., 2005).
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Indeed, France applies a generally binding minimum wage (SMIC), set at national level, below which it is forbidden to pay workers. From January 2017 the legal minimum wage is EUR 1,480.27 gross per month for a full time employee working 35 hours per week (Eurofound, 2017). As a result, the average wages was in 2015 USD 41,252, same as the OECD average (OECD, 2017). However, in terms of working time, it is important to consider that a primacy of company agreements, over agreements concluded at branch level, has been established, which particularly influences employee's base pay. Therefore, trade unions have an important influence and this needs to be
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
In general, everyone who has a job has to be treated equally and has to get payed equally without any discrimination, based on gender, ethnic background, color or age. This is guaranteed by the Equal Pay act and Lilly Ledbetter Fair Pay Act. Different states have different compensation practices. While in US you can negotiate related to your compensation with the employer, in other states, especially in those underdeveloped countries, the compensation criteria’s are fixed and any employee cannot negotiate related to compensation (especially in public sector).
After reviewing Holland’s organizational strategy and exit interviews from the last seven years it is certain that through the new and effective compensation and benefits program created for Holland Enterprises, it will decrease the turnover rate, increase employee satisfaction and engagement and benefit the organization’s overall profits. Through careful consideration of pay structures, incentive awards, internal and external equities and the organizations benefits package Holland Enterprises new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes, “To survive and be successful in a global economy, an organization must be competitive. A major factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it also must vary the kinds and amounts of rewards offered, recognizing differences in individual contributions.” (p. 13)
Some of France’s laws may be a little questionable, and their business cards may not be able to fit into your average wallet, however, doing business here is not only exciting, but possibly life changing. Seeing aspects of regular life from a different perspective which may not only affect the way a person does business, but also looks at their own life - family, government, and culture.
What Do We Know About Merit Pay? Issue brief no. 20. N.p., n.d. Web. 15 May 2014.
Haggerty, P. (2013). Nonstandard work schedules offer employers flexibility for overtime. Payroll Practitioner’s Monthly, 24(1), 1-8. Retrieved from https://ehis-ebscohost-com.csuglobal.idm.oclc.org/ehost
I’ve chosen the topic of employee benefits and the varying considerations given to benefits around the globe. What are the issues to be considered? What about the MNE employee?
The subject of overtime hours has been a debated topic in the employment sector for decades. It is not only a topic that encompasses the legal viewpoints of everyone involved but it also presents itself as an ethical issue. There are continuous discussions on how many hours a week is considered normal and how should companies handle the hours that are worked above and beyond a traditional work week. Another issue that presents itself is even if these additional work hours are paid at a premium, do these additional work hours affect the well-being of the employee. The new generation of young employees is a group that values the balance between family and career. Many in this generation are not interested in more than 40 hours per week.
As it is apparent, the law requires employers to pay men and women equally for like work, work of equal value or work rated as equivalent, though they are not required to provide justification of a difference in pay if it is due to a length of service. However, the recent decisions in Cadman and Wilson changed this, and the Court of Appeal held that employers may be required to justify the use of a length of service criterion “as well as its adoption in the first place”.
Remuneration management is defined as the sum received for an employment or service delivered, this includes the money received on a monthly basis as well as benefits given as rewards (investopedia,para.1 ). Individualism need to be taken into account when implementing these remuneration structures or reward schemes, equal pay plays a role in balancing earnings among the diverse workforce (Shen, Chanda, D’Neetto and Monga,2009,p.241). The Woolworth’s Holdings uphold remuneration policies which have the purpose of making sure to attract and hold on to the best talent, that they are congruent with the strategies of the company and are the determinants of performance during the short and long phases. The policy considers the board members and the employees. This policy manages employees of the company by giving...
Compensation for today 's average worker has always been a highly sensitive topic for any employer. Determining fair compensation can be a overbearing task as there are many contributing factors that make up the general pay scale. When determining pay a company must always consider the hourly amount, the benefits that may be offered, any incentive that could potentially be incurred and ensuring that their employee have an established work life balance. For an employer to be successful in determining compensation for their associate they must remain grounded around 1 key principle. An employees compensation is determined by expertise, education and the daily duties performed by the employee.
Compensation management is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. (JetHR, 2013). According to JetHr corporate strategy, compensation can also include non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness.
Hendry (1994) define reward stragey as an important element in the stragtegic approach to HRM for different reasons. Firstly, it is the basic mechanism by which employers aim to elicit effort and performance. Secondly, the actual payment system may demand adjustment to develop motivation. Thirdly, it is frequently the fundamental part of the employer’s financial strategy . The efficiency of any organization is related to the level of payments and benefits that the organization offer, it literaly affects the relationships at work. Thus, the firms need to develop pay systems that are convenient for them , that provide value for money and that reward employees fairly according to the work they perform to avoid inequity and conflict. Reward management includes a set of tensions and paradoxes. For employers , reward is considered as a cost but to the employees , it is seen as their only source of
Horner and Talhouni (1998) stated “A popular concept in the USA, and increasingly in the UK, is the concept of earned hour...