Organizational Objectives and Total Compensation in Different Markets

613 WordsOct 22, 20133 Pages
Organizational Objectives and Total Compensation in Different Markets University of Phoenix HRM 324 Organizational Objectives and Total Compensation As a human resources consultant, instilling knowledge into organizations regarding laws affecting compensation plan is asked of frequently. BioTeq Industries is no different; it is a biotech company that is in need of help with their compensation plan. BioTeq is a federal contractor with an average of 200 employees, and is looking for guidance and information regarding laws and regulations that may have an effect on the organization’s compensation plan. The remainder of this paper will explain how certain laws and regulations may affect…show more content…
The McNamara–O’Hara Service Contract Act of 1965 also may affect BioTeq, because it is intended for contractors whom are contracted by the federal government. Not only does this law/regulation require contractors to pay local prevailing wages if it exceeds $2,500, but it also requires for the contractor to offer fringe compensation that is equal to the local prevailing benefits (Martocchio, Ch.3, 2009). Being a federal contractor with 200 employees, BioTeq has additional regulations that would not affect organizations that are not federal contractors. Two great examples are the Executive Order 11246, and the McNamara–O’Hara Service Contract Act of 1965. As previously mentioned both of these regulations affect contractors, one affects contractors with 50 plus employees, and the other affects federal contractors. However, BioTeq remains similar to organizations outside of the biotechnology industry by having to keep in alignment with the majority of laws/regulations currently in effect. Such regulations include the Social Security Act of 1935 and the FLSA of 1938. When creating a compensation plan BioTeq must take several factors into consideration. These factors include the type of work required by employees, and the hazards involved in the work being performed. Two of the regulations that BioTeq must keep in mind as well, are the Executive Order 11246,
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