The Challenges and Trends in Compensation in the Public Sector Essay

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The purpose of this research paper is to review the challenges and trends in compensation in the public sector from an interdisciplinary view of local, state, and federal agencies human resources. Public sector human resource management continues to experience many challenges in the ever-changing workforce. Through the phases of the employee life cycle, human resource managers are required to keep compensation to the forefront in forming a strategic organization. Of those challenges, budget cuts, which affect pension plans, and tenure, are some of the areas of concern for human resources amongst government agencies. The nature of work public agencies provide, makes it imperative that policies and procedures are defined and universally compliant with government regulations. Using guiding principles of government practices along with history, the public sector continues to experience challenges in balancing compensation and benefits for their employees.
Human resource professionals have to learn and understand all aspect of public sector employee relations. Of those regulations, laws related to fair compensation practices are especially important. The Fair Labor Standard Act passed in 1938, established minimum wage, recordkeeping, overtime pay, and youth employment standards (US Department of Labor, 2014). Both state and local agencies must comply with this standard after the decision in Garcia vs. San Antonio Metropolitan Transit Authority (Klinger, Nalbandian, & Llorens, 2010). This decision made it possible for employees, excluding exempt professionals, are to be paid time-an-a-half for overtime. A challenge many agencies face is record keeping. This maintenance of employee compensation records is ...

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... the role of the profession on public sector compensation. Public administration review, 73(1), 8-9.
Southern, C. (2013). Rewards and recognition: The competitive advantage of public sector organizations. HR News Magazine. Retrieved from
Stoeckmann, J. (2014). Facts an fallacies of total rewards in the public sector. PA Times. Retrieved from
Sun, salaries and public servants; pay in the public sector. (2011, March 5). The Economist, 398(8723), 81(US). Retrieved from
United States Department of Labor. (2014). Wage and hour Division (WHD). Retrieved from (

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