Considerations for Compensation and Benefits

1442 Words Jul 3rd, 2012 6 Pages
Considerations for Compensation and Benefits

Abstract
Compensation is one of the most important considerations perspective employees will make prior to accepting a job offer. For this reason, another performance of Human Resource (HR) professionals is the compensation analysis. The focus of the analyst in this position is to use strategy in formulating compensation and benefits packages that are attractive and conducive to maintaining talented employees (Editorial Board, 2011). As another critical service of HR experts, this document will explore the types of benefits and compensations companies use to meet certain criteria of employees. This work will also provide insight on the ways in which these packages are designed to attract
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It is not uncommon for these organizations to base pay grades on knowledge or skills of the employee (Forsyth, 2012).
Other approaches to generating the compensation and benefits plan may include a balanced sheet approach, global market approach, or even a tax equalization approach. Independent of these concepts, though, Human Resources professionals follow a particular set of equations for generating compensation (Forsyth, 2012). The following chart reflects the metrics for compensation from the HR perspective: (Forsyth, 2012).
Private and Public Sector Packages Another, yet debated, topic that affects compensation and benefits will be the sector of the job. By this, we are looking at private and public sector jobs. Public sector jobs are those which are owned and operated by the government. They may be non-profit organizations. Private sector jobs are those which are provided by citizen-owned, for-profit, organizations. It has been debated for years as to whether public sector employees are compensated more “fairly” than private sector employees. However, if you consider the unlimited resources of the government-owned organization versus that of the privately owned company, it would seem more understandable as to why this variance exists. While both private and public sectors may have similar policies, or indirect compensations and benefits, they may vary in terms of time. For

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