The Importance Of Employee Compensation

Employee Compensation

Introduction

With human resource management becoming the most comprehensive subject when it comes to the management of people in organizations, it is imperative to reiterate the importance of worker compensation in the confines of managing labor. The chief purpose of this term paper is to analyze the Soergel (1) report on the state of employee compensation in the U.S. Based on the report that was presented by the Labor Department of the United States; there were not changes in the patterns of employee compensation in the country. Therefore, it is quite necessary to explain the trend and the implication for work input and the upcoming performance of the labor market as a whole.

Overview

According to Soergel (1), paying the employees while on leave is a hard issue the reasons being that the employers find it unfair to give financial benefits to the workers even when they are not rendering their services. Employee leave is a crucial issue for the organizations especially now that the law compels them to give sick leaves not only to the mothers but also the fathers. With more employees opting for work that offers paid sick and maternity/paternity leave, the question that requires attention is whether the labor laws and policy reforms proposed can adequately cover the expectations of the employees. Compared to the increment of salaries, employees have a high preference for paid leaves. Therefore, this is another dynamic in the labor management industry that qualifies the observation that benefits outside the wages are critical factors that dictate motivation and retention of workers. Nonetheless, the bitter truth that the employers need to bear with is that none of the workers depicts the will to see a pay cut even with the increase of other benefits outside the wage (Soergel 1). Cohen (para. 1-5) ascertained that companies, especially those operating as private entities, have made significant strides as far as the rewarding of their top managers is concerned. Recent trends in the field or human resource management show the trickling down of the practice of worker rewards from to top managers to rewarding work and employee performance in across all the levels of employment. The reason for such broad-based programs of reward is the inculcation of a culture of performance that drives improved organizational output (Cohen para.