Incentives Pay With Traditional Pay Essay

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

“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

Compensation refers to the payment or award given to an employee for the value of their work during employment. Compensation is awarded in many forms, direct or indirectly are a great example. It can be used as a strategic tool to either motivate and empower employees or be used as a bargaining tool by employees when deciding where they will apply their skills and knowledge.

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

Pay and Rewards – pay and rewards attract, motivate and retain staff. The employment contract which lists rewards, whether it be pay, bonus or benefits, can remove animosity amongst employees and employers. However, recent research reveals that employees are no longer motivated by a financial reward alone, but

There are five major components of job satisfaction, one being monetary benefits (Ghillyer 2010). According to Ghillyer (2012) an employee’s behavior towards their pay may affect their work performance. The issue that arises with employee motivation is that management is unable to satisfy all (Ghillyer 2010). This becomes an even larger problem when employees being joining unions, resigning and being frequently absent (Ghillyer 2010).

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

Incentive pay is key when trying to increase the productivity of a company. Using incentives can increase a worker’s performance on a job, thus making the company more profitable. In an article written by Austan Goolsbee, he discusses “the lure of incentive pay” and how it affects a workers performance while doing a certain job. The article seeks to bridge connections between how busses in Chicago and Chile while exploring the different incentives in which they run. According to the article, “bus drivers in Chile are paid in one of two ways: either by the hour or by the passenger.” Goolsbee furthers develops this study by comparing the different notions for which the drivers are paid. If drivers are paid a salary per passenger, then the drivers

Compensation is defined as all forms of financial returns and tangible benefits that employees receive as part of an employment relationship. Thus, in order to achieve, create, and maintain an effective compensation program you must explore greater professional expertise, organizational understanding, creativity, and vision (Bernardin & Russell, 2013).

Compensation – wages from an employer to their employee, this would include both fixed and variable compensation that would correspond to work performance.

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).

Organizations create compensation and benefits packages in order to attract the best talent. In today’s global economy it is imperative that organizations offer compensation packages that are competitive in order to recruit the very best talent in the world. However, in order to be successful, compensation packages must align with business strategies. Authors “Mathis, Jackson, and Valentine (2014) explain that an effective total rewards approach balances the interests and costs of the company with the needs and expectations of employees” (p. 369). In order to gain a competitive edge, organizations must balance the costs of payroll and benefits with rewarding employees for their contributions. This paper will analyze the construction of a compensation and benefits package that is needed for a new secretary position at the Frye Memorial Hospital in Huntington, WV. The paper will highlight the essential elements of a compensation package. Moreover, the paper will examine how the compensation package aligns the Human Resource (HR) strategy with the Hospital’s business strategy.

Salaries and wages in any organization play a prominent and important role in determining the outcome of the organizational performance. It is undoubtedly a double-edged weapon. It is one way to satisfy its growing

One of the most crucial elements of a successful or productive organization is an effective employee selection process. The significance of this process emanates from the fact that how workers carry out their jobs plays a crucial role in determining the level and extent of success of an organization. Due to the significance of an employee selection process, organizations draw candidates for open positions from the labor market. Actually, top-performing or successful organizations draw candidates from approximately 60 percent of the labor market. This trend includes sourcing for passive candidates who would prefer to remain contented with their present job. Moreover, organizations will relatively low or poor performance draws candidates from nearly 40 percent of the labor market and active workforce. An example of a top-performing organization that draws candidates from the labor market is Wal-Mart. The labor market plays a crucial role in employee selection with regards to having a population with the necessary qualifications for working in various organizations.

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.