Benefits And Benefits Of Employee Compensation

than $5.15 an hour. Overtime pay at a rate of not less than one and

Under the FLSA, there are two categories such as exempt and non exempt. Employees who are non exempt are those who are entitled to overtime pay. The exempt employees are those who are not eligible for overtime pay. In most cases, some hourly workers are not covered by the FLSA but most FLSA covered employees are nonexempt.

• Each employee qualifies to earn overtime at a rate of 1.5 of his or her hourly rate for every hour greater than 40 hours.

“Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs.” Martocchio, J.J. (2013) A Human Resource Management Approach. Compensation as most know is the hourly or annually paid. Compensation consist more of just hourly or annually pay. Organizations create monetary compensation process to reward their employees for their job performance. Monetary compensation is the core of

Overtime: Federal overtime provisions can be found in the Fair Labor Standards Act (FLSA). Employees who are not exempt from overtime regulations are covered by the Act and employers are required to provide them with overtime pay for hours worked

While smaller businesses operating on tighter budgets may find it expensive to pay overtime, the bigger companies with few employees on the managerial positions are capable of paying for overtime for the employees whose category will fall below the minimum exempt. Furthermore, all the options available for employers to handle the proposed rule should it come into effect will still benefit the American worker. One remedy is to follow the law and raise the annual salaries of employees who are overtime-exempt which will motivate workers who are already earning a salary close to that minimum (Rossheim, 2016). The second option is to re-classify workers as no-exempt, a move that would see the workers who are earning below the proposed exempt minimum qualify for overtime pay or reduce the workload for employees so that they only work for 40 hours in a week (Rossheim, 2016). The last option would be to hire more workers and avoid paying overtime which is a good move in providing employment for the unemployed. It is evident that the options available for employers would work towards improving employees’ welfare as well as saving the organization from the challenges of low remuneration.

A disadvantage is that some people find some hourly jobs degrading and undesirable with few opportunities for bonus or advancement. Analysis: Salaried employees generally make a large sum of money and have extra benefits such as, no time clock, better bonuses, guaranteed wages, opportunities for faster advancement, and breaks/lunches at will. Hourly employees do not have these advantages. A benefit of hourly wages is that you can reduce cost based on volume by changing the scheduling of the hourly staff based on business need. Hourly pay is pre-determined and can be different hourly amounts for straight time, overtime, or weekend and holiday pay based on if you are a union or non-union facility and based on the contracts you have with the hourly workforce. b. Commission/Productivity-Based Compensation

According to Elizabeth Sykes’ PowerPoint (2017), employees in Ontario are currently required to work forty four hours a week before they can begin to receive overtime pay. Meanwhile, Americans covered by the FLSA enjoy having to work four hours less before overtime kicks in (US DoL, 2017). In the proposal for the new ESA, employees would be entitled to a forty-hour minimum before overtime. This would effectively bring us up to par with America’s Overtime Laws. This potential change would surly benefit employees, especially the ones who enjoy their job and never minded overtime in the first

If one does not work he/she will not get paid. An hourly employee is based on an hourly amount. Most employees are required to work a 40 hour work week. They do not have any contracts to sign to gain employment, however, have to fill out all the necessary paperwork for the onboarding. An hourly employee has to clock in upon arrival at work and upon leaving work. This helps keep track of hours worked and also get paid overtime, if the employee works more than 40 hrs a week. Benefits for hourly include: overtime pay if working over 40 hours a week, sick pay, holiday pay, vacations, bereavement leave, insurance, 401K, retirement, tuition reimbursement, bonuses, extended time off, but with no pay and employee purchase programs. If an hourly person needs to take an extended time off due to illness or family one will not get paid regular hourly pay like a salary employee would. The benefit of an hourly employee is that one can make the same amount of money or even more than a salaried employee because of all the overtime

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

According to The Wage and Hour Division (2016) The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments. The FLSA requires employers to pay employees on a regular payday, in relation to the work period. Employers must pay employees all hours worked per work week, without averaging or moving hours to minimize overtime pay, each week stands alone. The Wage and Hour Division (2016) states overtime must be paid at a rate of at least one and one=half times the employee’s regular rate of pay for each hour worked in a workweek in excess of the maximum allowable in a given type of employment. Where violations exist in relation to overtime pay or minimum wage enforcement through legal remedies go into effect, allowing employees to get paid back for their loss of wages, or liquidated damages.

There are three main factors that Amy should use to determine whether Jane and her fellow shift workers are exempt or non-exempt. The first element is the salary criteria for the employees (Vogel et al., 2007). All the states in the United States are covered under the FLSA guidelines and should compensate the employees accordingly to avoid any possible disputes arising from employee suing the business for mistreatment. The Non-exempt personnel must be rewarded for the hours they work overtime; the normal working hours for these employees are forty hours in a week. The exempt employees, on the other hand, are not eligible for payments of any overtime unless they have an individual agreement with the company. If an employee is salaried by the company does not mean that they are exempted. The personnel in the organizations under the FLSA except some cases defined by the law such as the lawyers and doctors have to

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.

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

The organization for which I am designing the compensation package is a company that offers internet solution to customers in the domestic US market and the global market. The position that I am hiring is that of a company secretary. The secretary will be required to work in the office of the human resource manager and will handle all the papered and paperless documentation. The position comes with numerous benefits and packages as outlined herein.