Compensation

All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve, the situation may boarder on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). Within the Equity theory there are three justice theories. The first of which is distributive justice, this touches on if the referent feels that the outputs are fair that are given to the employees. This comes into play

In the case presented both AFLAC and L.L. Bean had their own distinctive ways of utilizing their products in order to enhance the total compensation for its employees. The factor that has deterred more employees away from their current employer is that of benefit packages, and reward systems. As stated by () “compensation affects a person economically, sociologically, and psychologically. For this reason, mishandling compensation issues is likely to have a strong negative impact on employees and, ultimately, on the firm’s performance” (p.313). Many felt just a bump in pay wasn’t enough to substantiate their hard work or the efforts that the performance efforts provided to their organization. As stated by () “the right total rewards system a blend of monetary and non-monetary

Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

For the most part, a company’s compensation policy aims to ensure that employees are compensated in a fair and competitive manner. However, the compensation objectives employed by different companies can vary widely. This is especially true when taking into account wages vs. skills, competitor salaries, pay-for-performance, and other elements of compensation, like overtime, incentives, etc. (Snell, Morris, & Bohlander, 2015).

A different quote from a different reading from class that closely relates and further demonstrates this problem is about unequal pay. The quote reads “Many sociologists point to sex segregation, or the concentration of men and women in different occupations, as an important cause of the gender gap in earnings” (Giddens, Duneier, Appelbaum, Carr, 269, 270). It is obviously not fair that women and men get paid differently because of sex segregation. It should not matter if someone is a male or female. If the person is doing what they are supposed to be doing, I believe the pay should be the same between the

I thoroughly agree with your post. You have indicated some very key points in regards to how compensation definitely has bearing on performance. I like how you stated that compensation is one of the predominant factors that drives a company’s performance. This is very true. Furthermore, compensation is the reward given to employees in return for their services provided and it is often the foundation of a productive and stable workforce. All the more, the quality and performance of your company’s talent pool is usually directly dependent on how well you put into effect the compensation planning tactics.

--Finally, some opine that employee pay should be tied in part to the compensation of the owner/chief operating or executive officer of the business, with the lowest paid employee being paid no less than a certain

A non-competitive compensation package however would result in making it harder for an organization or employers to attract and hire those with talent and skills (Ghosh&Satyawadi, 2013). As with everything else in this world, an attractive compensation and benefits package is subjective and is different from field to field. The compensation should also be in line with on the job factors such as difficulty, working hours and so

The issue of gender inequality in the workplace affects many. The issue of discrimination in wages has been an issue since women were allowed to hold a job and has continued, and possibly progressively gotten better, but it has also gotten progressively worse as it is easier to hide this

Regardless of the diverse composition of the workforce today -- in experience levels, gender, location, work style, or any number of variables -- a solid understanding of what launches top-flight individual contributions will be essential to developing an effective pay-for-performance strategy.

With the constant change in today’s business world, to have a competitive advantage makes it difficult for employers to attract and retain the most talented employees. Identifying the company’s compensation strategy ensures the organization offers the right pay and manages the pay increases to retain top talents. When we hear the word compensation we think about compensating an employee for their work performed, but there

When making compensation decisions, whether it is internal or external, comparisons must be considered. However, employers must carefully balance pay structures, because internal and external comparisons may not converge. Therefore, employers may differ in the way they place priorities on internal and/or external comparison data when they are developing pay structures.

Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).

The organizational justice (OB, p. 256) is taken to extremes. Implementing the same reward through the company notwithstanding local market and standard of living, notwithstanding individual performance creates the feeling of inequity and does not encourage doing better than the average. Attempts to minimize sabotage appear to focus on treating employees fairly and honestly, by