Pros And Cons Of A Salary Schedule

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

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).

Base pay will be determined according to the value of the skills and competencies an employee has acquired on the production floor, there will be the incentive for skill development as employees base pay will increase as their skill proficiencies enlarge. This will also create mobility between jobs in the organization as many members will be proficient in numerous jobs.

views of costs and the labor hours this can help create an appropriate budget and validate that the

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).

It is also imperative for the company to connect its compensation and benefit package with its overall objectives and plans along with aligning it with its HR plan.

The salary rates the business is presently paying for the individual positions fall well within the wage cure; however, modifications will be as followed:

In this paper, I am going to talk about hourly and salaried employees. As we all know, a company or business cannot run without both of these employees especially if it is a large organization. Working together these employees make a company successful. In a business it is important to employ the right candidates to fill these positions. Some require a higher educational background while other positions do not. It depends on the needs of the person applying with or without a degree. Some places offer promotions in lieu of education, but do not pay very well. Speaking for myself, when moving from a hourly to salary position, they offer a ten percent increase only if you make less than what they are offering. Sometimes, it does not benefit to take a salary position.

The budget allocation percentage is broken down as 90% salary and 10% is benefits (health, retirement, tuition reimbursement). The Match compensation decisions allows us to better manage labor costs by adjustments to meeting-the-market pay level structure during tight labor markets. The salary range is compettive with the market where the human resource manager uses a pay survey and audits on key positions to ensure salary ranges reflect current compensation trends in the industry. (Lotich, 2017).

I think the different compensation plans typically have several reasons that depends on how the firms want their employees to behave and want to attract and retain particular employees. Furthermore, the firms might use the different pay plans to motivate their employees (David, 2012, para. 4). In other word, the firms might want their employees to focuses on either sales or services by using the different pay plans.

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).

There are many advantages and disadvantages to a single, unified salary schedule. These types of salary schedules only recognize years of service and amount of education to determine salary amounts for all certified staff. Each salary schedule has strengths and areas of improvement, and analysis of the salary schedule will highlight these areas. Salary schedules, including Hollister RV School District’s, only require teachers to remain employed thorough the school year to earn a raise in pay for the next year, automatically moving to the next step on the salary schedule. Pay increases also are earned by moving to the next lane or column based on the hours of graduate credit completed toward an advanced degree, such as a Masters, Specialist, or Doctoral degree. Hollister RV School District’s certified staff’s salary schedule discloses several areas of exceptionality, highlighting what is important to the District. However, there are also areas to be improved, including recruitment and retention (Hollister RV School District, 2016).

Budgeting is crucial in the well-being of a company especially the financial health status of a company. In fact, no professionally managed firm would fail to budget, since the budget establishes what is authorized, how to plan for purchasing contracts and hiring, and indicates how much financing is needed to support planned activity. It is routine for a company to budget for its expenses. Expense budgets act as a guideline of how much revenue a company would require keeping the activities running. It is used to set the company’s targets for a certain period.

They are thinking of implement a strategic compensation plan as well as various other options that will allow its organization to focus on its strategic objectives and develop a comprehensive plan, considering base pay, short- and long-term incentives, benefits and growth opportunities. This kind of planning helps ensure that the compensation system will support the organization's long-and short-term objectives without overlap, which would have more than one pay plan driving the same objectives. The ultimate objective of this process is to ensure that the compensation system and other important facets attract and retain the desired employees and that it motivates them to do those things that support the business plan.

The factors I had to consider were convenience/flexibility, overall estimated pay per hour, wear-and-tear on my vehicle, how the hours format might affect my ability to work another job, and whether or not the new expected pay was worth my overall involvement (as a contractor without benefits).