Case Analysis : Compensation Practices Essay

Case Analysis : Compensation Practices Essay

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CASE #2 COMPENSATION DILEMMAS
Case no 1.
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).
In the concrete case in those circumstances when an organization determined that two different jobs are equal in terms of value to organization but again while the labor market offers those common profiles of occupations versus deficient profiles, in these circumstances, the company can make some differences in order to attract specific qualified persons for the position or for a specific offer of employment. However, if an employee will hold a position which is absolutely the same position with another position within the organization and the work has to be done in the same conditions, and have the same duties and responsibilities and requires the same skills to get the job done, the compensation has to be the same for both positions . However in the concrete case, the employer could decide based on the situation of what the labor market is offering. From my experience (I would like to share one of my practices in my country) the public employees in the Government have fixed salaries, based in the level and grades that they are. Example: All directors of Departments have the same level of compensation. However, since Government was ...


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...with annual performance evaluation) then the company could decide to grant that amount of money to an outstanding employee that because of his/her personal commitment to the work and positive results, has contributed in achieving the company’s goals.
Therefore, in the concrete case, if one of the employees performance was truly spectacular, just as good as the other employee (in the case 3) and in a situation when the organization has no raise money available for a merit rise, a fair solution would be granted the “leveling of salaries” versus “performance at work”. However in those circumstances when this is impossible then the managers could use other motivation tools which are available for the company (the opportunity attending specific professional development programs; provide a scholarship; honorary award; extra vacation days; promote to a better position etc).

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