The Pros And Cons Of Fair Compensation

Good Essays
tro: 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. For an employer to higher for a salaried position…show more content…
This is all determined by the "Fair Labor Standards Act of 1938 which covers all employees (with some exceptions) of companies engaged in the interstate commerce or in the production of goods for interstate commerce. The FLSAs major provisions are minimum wage, hours of work and child labor". Compensations Staff, pg. 553-554, Penn Foster. This law is based on an exempt/non-exempt basis. Most salaried positions are exempt as they are usually offered at a higher wage which is "above the exemption line of $23 600/ year.", Coverage under the FLSA, When a position is exempt the employer now has the ability to set the wage but not the maximum hours worked. When creating a salaried position the employee must have a set wage that cannot be adjusted based on hours worked, whether it be higher or lower than the generalized 40 hour work week. Any salaried employee must also be given a number of annual sick days, bereavement pay and holiday pay etc.", Coverage under the FLSA, only adjustment that may be made to the base pay must be considered permissible. An example of a permissible adjustment to the base pay would be an employee using more than their allotted sick time. It is clear that this law was created to protect workers…show more content…
When reviewing a position for a Hyndman trucking as a longhaul truck driver the pay scale was listed as "paid per mile, per mile driven, bi-weekly via direct deposit." Drive Hyndman," Another interesting compensation scale is known as piece work. Workers at the St. Thomas Timkin assembly plant are paid on an hourly wage with bonus compensation per pieces during their shift. Finally, one of the most heard of compensation is a commission based pay wage. When reviewing an add for a sales associated at MGM ford there is no base wage listed, but that wage is determined by number of cars sold. A great benefit to these compensation scales is that the opportunity for larger income is determined by the amount of time put in. There is also the benefit of being able to create ones own schedule. A disadvantage to this compensation scale is that your income is never guaranteed and in many of these positions opportunity for growth is almost
Get Access