Financial and Non Financial Compensation

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Recommended: Non-monetary incentives in the work force

The chapters for week four were interesting to me because compensation, both financial and nonfinancial, and safety are important to me in the workplace. Until this class, I had only every considered these topics from the view of the employee, not the employer. I have learned that it is important to look at the issues from both standpoints in order to get a clear picture of the issues. This week I chose several subtopics within these chapters that are the most profound to me. These include determinants of direct financial compensation, nonfinancial compensation, and the benefits of health and safety.
When it comes to compensation, human resource managers have their hands full. Determining how much to pay for each job consists of looking at several different factors. These factors include the job, the organization, the employee, and the labor market. When looking at the job, the human resource manager will look at a job analysis, description, and evaluation to help set the wage. They will also look at the organization in terms of its compensation policies, organizational level, and its ability to pay. Human resource managers must also look at the employee. This includes the employees performance, skills, competencies, seniority, experience, organization membership, potential, political influence, and luck. They can also look at the labor market using compensation surveys, expediency, cost of living, labor unions, the economy, and related legislation (Mondy & Noe, 2012).
According to the American Speech-Language-Hearing Association (2013) “the single most important factor influencing an individual's rate of pay is the kind of work performed” (p. 1). However, a job is only worth what the market will bear. Some knowledge, skills, ...

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...ng Association. (2013). In Factors Involved in Determining Salary. Retrieved November 23, 2013, from http://www.asha.org/Careers/job/Factors-Involved-in-Determining-Salary/
Hill, D. C., & Seabrook, K. A. (2013). Safety & sustainability: Understanding the business value. Professional Safety, 58(6), 81-92. Retrieved from http://ezproxy.arbor.edu:80/login?url=http://search.proquest.com/docview/1399698704?accountid=13998
Life Application Study Bible: New International Version. (1997). Grand Rapids, MI: Tyndale House Publishers, Inc. & Zondervan Publishing House.
Mondy, R.W., & Noe, R.M. (2012). Human resource management (12th ed.). Upper Saddle River, NJ: Prentice Hall.
U.S. Bureau of Labor Statistics. (2013). Occupational Employment and Wages, May 2012. In Occupational Employment Statistics. Retrieved November 23, 2013, from http://www.bls.gov/oes/current/oes131023.htm

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