The terms compensation refers to all forms of financial returns and tangible benefits that workers enjoys in replace for their work contribution. In order to keep a company at the forefront, a significant compensation system is a critical issue that need to be address intelligently by a compensation HR manager. It is essential to find ways to ensure that pay rates are fair and equitable to retain and recruit employee. Therefore, the compensation manager has to understand the current and upcoming competitive markets for employee pay and benefits. Due to complexity of business world nowadays, the trade off here is how to create a low cost system while envision effectiveness in terms of attraction and retention. Exploring employee compensation topic is an interesting discussion as well as important in upholding the company performance high while ensuring concerted activity and continuous motivation among employees. It requires a higher degree of professionalism, and sees organization in whole new perspectives ways. This essay shall discuss the observation of four compensation trends and other recently gaining popularity trends in the compensation aspects. In general, this shall provide a fundamental knowledge for reference.
First of all, there has been an indication of increasing in diversity of pay strategies and practices. As we aware, in has been quite a long years back when employee has been receiving a basic salary and a predefine benefits. This tradition is known as competitive salary paid and comprehensive coverage of benefits; which is a reasonably standard salary pay structure and standard set of benefits such as medical, dental and etceteras. It is normally consider being at par with the competitor of similar organizationa...
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...on a well known giant telecommunication equipment provider is following the footsteps of IBM and transforming the company into an ICT end to end solution provider. This has yet a successes story; however it is an eye catching front page to know about.
Compensation’s role has change a lot. And compensation manager have to reconsider the role of compensation programs in supporting, communicating and leading the organization value and performance. In this transition period, many organizations are challenging the traditional way of doing things, experimenting different type of structures, allocating money differently to programs, and therefore HR compensation manager have to be skilful enough in finding innovative ideas to attract and retain employees as well as obtain more in return of the investment made in compensation with a focus on the long-terms accomplishment.
Compensation is made of a base salary (paid by the hour, work or the year; excluding overtime or bonuses), variable pay (bonuses, profit sharing/stock options which work hand and hand with the performance of the company), and benefits (to include health insurance/savings plans – 401(k), or tuition reimbursement). The traditional way of determining base pay for jobs was to compare jobs in the same industry. Now industry and market, no long work by themselves, the current thinking is more person-based that considers knowledge, skills, and competencies of the work. This, however, is best suited for high-performing environments that remain flexible in their deployment of human capital.
anybody can do? IBM has taken on the leader of software with an innovative new
Years later, the Telecommunication Act of 1996 triggered dramatic changes in the competitive landscape. SBC Communications Inc. established itself as a global communications provider by acquiring Pacific Telesis Group and becoming the new AT&T. The merger of AT& T and BellSouth, along with the ownership consolidation of Cingular Wireless and YELLOWPAGES.COM, will speed convergence, competition and continued innovation in the communications and entertainment industry, creating new solutions for consumers and businesses and positioned to lead the industry in one of its most signifi...
The company Steel Co, which has been established for around 30 years, has been in a steady decline during the current recession and although a Divisional Director has been employed by the owner the fortunes of the company have not improved. The staff is unhappy, unproductive and unimpressed by the Human Resource system that currently exists in the company. The pay structure that currently exists within the organisation has been much debated among employees who feel it is unsatisfactory. The Business Adviser will research Performance and Reward management tools in order to help the company develop a more suitable Performance and Reward system to use. A variety of sources will be used in order to evaluate the system and tools against other organisational frameworks. The pay structure within the company will also be looked at in order to identify any possible changes that could be made.
...ide whether it should be getting better at what it is already good at or whether it should be looking toward higher order capabilities that are beyond the old. The strategic vision of AT&T must be adjusted to reflect their intent of being ‘boundaryless’ and to become the leader in the infocom industry. It must become the companies culture.
The foundation for effective job performance and compensation system can be traced to effective job analysis process. Fundamentally, a job analysis should consist of a thorough examination of the job 's duties and knowledge, skills, abilities, and qualities that are required in order to be successful in a specific position, upon which appropriate rewards or compensation can be determined. For many perspectives, jobs are usually made up of requirements and rewards, where rewards may be regarded as a major recruitment strategy for motivating potential employees in order to influence them to stay the organization for a longer period as well as enhance their performance. The most common or basic form of rewards which attracts employees is extrinsic
Johnson, Sam T. "Plan your organization’s reward strategy through pay for performance dynamics: Compensation & Benefits Review 30, Number 3: (May/June 1998): 67-72
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
As we know, the term ‘human resource management’ underlines a belief that people really make the difference, only people among other resources have the capacity to generate value. However, the human resource management is considered as the ‘Cinderella’ in the organization as its importance has not been discovered by the senior managers, in addition, it has to share responsibilities with line managers, sometimes it takes more work than it is expected. Actions should be taken to help the Cinderella find her glass shoes.
We intend to exploit our leadership role by continuing to target and enter segments of the communications market that we believe will experience rapid growth or grow faster than the industry as a whole....
An organizational human resources department utilizes the hiring and firing process to meet the organization’s personnel needs. Organizational human resource departments are charged with the oversight of an organizations administration department. The practice of hiring and firing people is a process employer’s conducts on a daily basis. This process has to be done in a proper manner and not in haste. The implication that can occur from the improper hiring and firing process could and can have a positive or negative impact on an organization. Therefore, employers must carefully evaluate their decision to hire/fire individuals and its impact on the organizations’ workplace environment and others employees. Human Resource Management is important for an effective organization. In today’s organization, HRM is valuable to the organization because of increase legal complexities and its known for improvement in productivity. However, management should realize that poor human resource management could result in an outburst of hiring process followed by firing or layoffs. According to (Satterlee 2013, p. 194), “Hiring the best candidate who is also a good fit for the organization is crucial for the success of an organization, because a poor hiring decision will have repercussions across the entire organization”. Satterlee made a valid point because poor hiring could have an impact on the bottom line performance of the firm. In other words, HRM is the contributing factor to the success of the organization including motivating and maintain the staffs. The purpose to the motivation is to ensure that all employees grow to a full potential. According to (Sims 2006, p. 5), “HRM efforts are planned, systematic approaches to increasing organizati...
Reward system policy often view from the organization’s perspective where the economic needs of the firms take precedence over the individual. Under this outline, costly reward system and limited reward system will be wasted or misapplied because they are not valued by employees. Organization will see that what is important is not whether a reward system program look great on the paper or considered a state of the art reward program, but is going to be measure by or not the employees wanted the reward and they are willing to work toward a desired result to receive it. Reward system with in organization begin with the understanding of the individual needs, values, and expectations. Within Organization that doing business
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.
McMullen, Stark and Jenson find in their research by understanding the employee/ reward dynamic go hand in hand by developing rewarding programs that are in line with organization vison and employees attentiveness to contribute to the organization success. (McMullen, Stark and Jenson, 2007) Reward programs provide organization to creating a competitive an advantage but it is the employees that bring the full circle. Reward programs contribute to organization success but it does have it pros and cons. Many pros develop when using reward programs such as attracting top talent, motivating employees; strive for growth, development, and retaining good
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