Benefits Of Compensation For Employee Compensation Essays

Benefits Of Compensation For Employee Compensation Essays

Length: 742 words (2.1 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

In today’s society, there are a number of ways that compensation can be determine and there are a few salary trends that employers should be aware of in order to accurately pay employees based off his/ her qualifications and performance. Compensation has a very large impact on retaining and attracting employees and it takes a toll on the organizations profits (Mello, 2015). When an organization does not have a consistent pay scale and it not fair about how employee raises are given, it can really affect the attitudes and performance of their employers. Compensation should be a decision that is agreed upon by all top management and it should be supported with evidence, but also compensation and salary trends should be competitive for the area. Therefore, there are several salary trends that should be noted in order for organizations to make an educated decision on how compensation should be set for all employees.
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 ...


... middle of paper ...


...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.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Benefits Of Cutting Employee Compensation Essay

- Cutting Employee Compensation One area of ethical consideration for employers is how to balance expense control with employee compensation. More and more companies are looking for ways to cut the compensation to their employees. These cuts in benefits are leaving the employees to pay more for less benefits or are losing benefits altogether. Providing high quality benefits to employees has always been a way for employers to draw in the best or most qualified candidates. Jensen (2014) stated “ For years now, a key strategy of employers is to shift costs onto workers via higher deductibles and co-payments in part to slow the growth of the total company-paid premium by getting workers to think t...   [tags: Pension, Employment, Retirement, Percentage point]

Better Essays
734 words (2.1 pages)

Employee Benefits And Benefits For Employees Essay

- Employee benefits refer to any form of compensation provided by the organization other than wages or salaries that are paid for in whole or in part by the employer. Employee benefit has become a major component of employee compensation that can even determine whether an employee will take a particular job and remain in it or not (Amah, 2006). There has been a reduction in the benefits offered employees in recent times because of the hard economic times. This has not augured well with employees who always want more....   [tags: Employee benefit, Wage, Employment compensation]

Better Essays
892 words (2.5 pages)

Essay on Non Monetary Incentives In The Workplace

- Do Not Show Me the Money: The Growing Popularity of Non Monetary Incentives in the Workplace With the growing decline of economy, more employers are using non-monetary incentives to motivate employees, yielding positive results. While everyone needs money for the expenses of everyday life, most current and long-standing employees rarely view cash as good motivation. If an employer pays fairly, employees desire appreciation and other non monetary rewards in exchange for a job well done. This trend is becoming more popular as businesses explore ways to motivate employees without breaking the budget....   [tags: Employee Compensation Benefits]

Free Essays
1226 words (3.5 pages)

Benefits And Benefits Of Employee Benefits Essay

- Employee benefits coordinator play a significant role in Human Resource Management. Employee Benefits coordinators are responsible for assisting with employee benefits, maintaining employee data base, managing all insurance billings and maintain employee files, sick pay, vacation and retirement. This study explores the importance of employee benefits to corporations, government agencies and non profit organizations. This paper also researches the effects on the management team and on individual employees’....   [tags: Employee benefit, Employment compensation, Pension]

Better Essays
1475 words (4.2 pages)

Essay Innovations of Employee Benefits

- The succeeding paragraphs will explain how innovations in employee benefits can improve the overall competitive compensation strategy of the organization. In order to maintain their competitive edge, companies need to fully understand that as the needs of their employee’s change, so does their benefit plans. Companies need to find innovative ways of engaging employees that encourage and support their commitment and improve their performance. The first way is by helping the company to attract and retain talent....   [tags: job satisfaction, competitive edge, compensation]

Better Essays
1867 words (5.3 pages)

Intrinsic Compensation and Discretionary Benefits Essay

- Compensation and Benefit Systems Intrinsic Compensation and Discretionary Benefits Intrinsic compensation refers to ability of workers to gain pleasure from their accomplishments of their daily activities. This pleasure acts as their reward or compensation of what they have individually done. This has the effect of making the workers enjoy their tasks. On the other hand, workers sometimes receive rewards on top of their salary or wages. These rewards are not mandatory for one to receive. These kinds of additional rewards are referred to as Discretionary benefits....   [tags: Employee, Rewards, Work System]

Better Essays
1157 words (3.3 pages)

Benefits Of An Effective Compensation And Benefit System Essay

- Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm....   [tags: Employment, Employee benefit, Wage, Organization]

Better Essays
962 words (2.7 pages)

Compensation Philosophy : Employee Compensation Essay

- Compensation philosophy is basically official statement recording the organization position about employee compensation. This explains the “why” of employee pay and produces a framework for stability. Employers can benefit from this if open about their compensation philosophy and having a proper pay strategy (SHRM, 2015). The executive team and the human resources department are the ones that usually develop the compensation philosophy’s. The compensation plan is based on different factors, for example, the organizations financial position, the salary information, the size of the company, and the level complexity in discovering qualified people based on the economy....   [tags: Employment, Employment compensation, Insurance]

Better Essays
782 words (2.2 pages)

Essay on Employee Compensation Programs

- Benefits have most definitely changed throughout the past years. According to Compensation, during 1880 people worked approximately 14 hours every single day except on Sundays and would only receive a raise if they stayed with the company for five years and if the company prospered during that time (Gerhart, 2011, p. 414). Over the next couple of years, employees began seeing work hours change from 60-64 hours per week to 54 hours by the year 1930. Eventually, employees were able to have holidays off to enjoy with families, but they still did not receive pay for those off days, though....   [tags: Business Management ]

Better Essays
1410 words (4 pages)

Employer-Employee Relations Paper

- Employer-Employee Relations Paper There are many different relationships Charles Schwab keeps with its workforce. Schwab uses every type of employee: temporary, contractor, and permanent (or "regular"). Within these types of employees exists different methods of payment, both exempt and non-exempt. This paper will examine the definition of each type of employee and pay then examine how Schwab handles the relationship with each. Charles Schwab is also an at-will employer and discloses this at the time of employment offer acceptance....   [tags: Work Employee Relationships]

Free Essays
1657 words (4.7 pages)