One current salary trend related to employee compensation is the way in which pay is determined and given to employees. Many employers have shifted from giving the employees who have worked there the longest the biggest salary to restructuring the pay based on employee performance and involvement to the company (De Geiter & Hofmans, 2015). Performance raises are beneficial to implement because it ensures the company is recognizing and rewarding the hardest working employees within an organization, which boasts employee morale and encourages the employees to strive to meet or exceed the organizational goals (Amba-Rao & Pendse, 1985). Therefore in my opinion, this salary trend makes more sense and is more appealing and motivating for employees. Just because an employee has been with the company for many years does ...
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...ributing to the employee in addition to their hourly or salary pay.
Compensation and salary trends are constantly changing and evolving as the world is adjusting to the increase in prices, but every organization should have a plan on how to handle these changes. The two trends mentioned above are just some of the changes that are taking place within an organization related to an employee salary. However, it is important for an organization to understand the importance of written policies and procedures when it comes to how compensation is given to employees and it is also important for employees to understand how their compensation is rewarded. In the end, there are many obstacles and challenges relation to employee pay, but the employers need to be fair and consistent in order to retain employees as well as attract potential employees to their organization.
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