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Introduction
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.
Laws
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.
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In April 2010, KK BB, the CEO of Marshall & Gordon, a leading public relations firm met with the firm’s leadership committee off-site in Miami. This off-site brought together Marshall & Gordon’s executive committee, practice and regional heads, and senior HR officers to discuss on redesigning the firm’s compensation system. A global advisory taskforce, under the direction of an external consulting firm, had spent three months collecting and analyzing data. Marshall & Gordon hired external specialists to design the new performance management program. The specialists proposed that the senior managers and human resource form a global advisory unit together with Marshall & Gordon partner to represent the firm’s five regions of the firm and lead the design process. The advisory unit surveyed all consultants in February in order to understand their way of thinking about the fairness, worth, and effect of the current performance management system. Majority of the interviewees responded to the corporate surveys implying that the subject was topic was especially exciting to them. Interviews gave insights on present and prospective business plans and direction. The survey also showed that specific focus across certain employee populations should be given. Six current hires from key competitors were also interviewed to comprehend competitor pay practices and compensation program structures. Further focus groups discussions and key information interviews enabled the taskforce’s to understand the needs of certain groups within Marshall & Gordon’s worker population. The survey culminated with the taskforce conducting interviews of 20 partners and principals togeth...
Stiglitz, Joseph. Economics of the Public Sector, 3rd edition. New York: Norton & Co., 2000.Print
Trends in time off with pay can vary from public (i.e. not for profit) and private (i.e. for profit) sector organizations. Usually public sector employees are governed by benefits that separate vacation, sick, personal days, jury duty, funeral leave etcetera. Private sector employers primarily utilize Paid Time Off (PTO) that lump all of the instances of needing time off in a time bank that each employee is responsible for maintaining. Time off with pay is a topic that is regularly evaluated throughout organizations today. In this paper I will be discussing the paid time off benefits that are offered to public employees.
Meyer, H. H. (1975). The Pay-for-Performance Dilemma. Organizational Dynamics, 3, 39-50. Print. 8 Feb. 2014.
Employee compensation and reward systems have undergone a couple of paradigm shifts since inception. Reward systems were traditionally compensation based and focused on the individual or the position (Beam 1995). After a recession in the early 1980's, employers turned to performance based models in an attempt to save money while still rewarding top performers (Applebaum & Shapiro, 1992). Today, the most successful organizations are using a total reward model, a hybrid of the performance based model combined with strategic human resource management planning to create reward systems that both benefit the employee and help organizations realize their operational goals (Chen & Hsieh, 2006).
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.
Besides that, Bright (2005) determined the individual characteristics, management level, and financial reward preferences of high PSM public sector employees which resulted in employees with high PSM are generally female, are managers, have higher education levels, and place less emphasis on financial rewards. This finding further reinforces Perry & Wise’s (1990) findings on employees with high PSM and their reward preferences. However, there are also contrasting views that public sector employees value extrinsic rewards as well because traditionally, people are attracted to work for the government because of the job stability, opportunities for career development and the pension system (Perry & Hondegham, 2008). Besides that, people also perceive that government jobs are more flexible and less stressful for those with families (Vandenabeele, 2008). Research studies have mainly focused on the PSM theory from the angle of public service as public
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
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. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...