Compensation & Benefits Essay

6166 Words Sep 30th, 2009 25 Pages
Running Head: COMPENSATON AND BENEFITS

Compensation and Benefits in the Twenty-first Century

Abstract

Team platinum will explore compensation and benefits in the 21st century. Any review of total compensation must include the crucial areas of health and retirement benefits and financial compensation, as well as discuss the implications of pivotal changes in the market and demographics which impact organizations and overall performance management issues. There are several different compensation and benefit strategies that can be combined in innovative ways to meet the needs of the both the organization and the diverse needs of the employees. The proper administration of a total compensation and benefits package is a
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When it comes to an individual trying to figure out how much pay they feel they deserve to be paid, they must consider the job they are applying for and the compensation packages the organization is offering. They must decide what is important to them. Do they want benefits like family insurance, dental insurance, profit sharing or other perks? Or do they want to eliminate those perks and take more pay in their place? “Today more and more employers are experimenting with flexible compensation packages” (Krannich & Krannich, 2005, p.38). These perks tend to add up when translated to dollar amounts. Many employers will offer numerous compensation packages where employees can pick and choose or mix and match what they feel are important to them at that point in their life (Krannich & Krannich, 2005). Salary Negotiation Tips for Professionals also suggests that employees should negotiate their base pay. What it comes down to is base pay is a major indicator of an employees’ value, as well as the way to compare the value of different positions. Most employees can expect that their base pay is about 60-80 percent of a total compensation package. An employee must not overlook or not focus on the other portion of the package. There is another 20-40 percent of that compensation package that can also be negotiated. It is all in how the employer and employee structure the individual’s