Organizational Objectives and Total Compensation in Different Markets
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 BioTeq’s total compensation plan, along with the similarities and differences influencing compensation for BioTeq and companies in other markets. There are several ways that companies are able to recognize and reward their employees, and the most important option is the compensation package offered to an organization’s employees. Although there are several options that may be included in compensation packages, the two most important options to employees are health benefits and pay. As an organization within the biotechnology industry, Bioteq must take their employees job functions into consideration. People that work in the biotechnology industry tend to work with chemicals and other products that may be potentially hazardous to their health, thus BioTeq must provide their employees with high-quality health benefits. Therefore, the two laws/regulations that may potentially affect BioTeq’s compensation plan are the Executive Order 11246, and the McNamara–O’Hara Service Contract Act of 1965. According to Joseph Martocchio (2009), the Executive Order 11246 “imposes requirements on contractors with government contracts worth more than $50,000 per year and 50 or more employees.” The contractor’s are required to develop affirmative
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 BioTeq’s total compensation plan, along with the similarities and differences influencing compensation for BioTeq and companies in other markets. There are several ways that companies are able to recognize and reward their employees, and the most important option is the compensation package offered to an organization’s employees. Although there are several options that may be included in compensation packages, the two most important options to employees are health benefits and pay. As an organization within the biotechnology industry, Bioteq must take their employees job functions into consideration. People that work in the biotechnology industry tend to work with chemicals and other products that may be potentially hazardous to their health, thus BioTeq must provide their employees with high-quality health benefits. Therefore, the two laws/regulations that may potentially affect BioTeq’s compensation plan are the Executive Order 11246, and the McNamara–O’Hara Service Contract Act of 1965. According to Joseph Martocchio (2009), the Executive Order 11246 “imposes requirements on contractors with government contracts worth more than $50,000 per year and 50 or more employees.” The contractor’s are required to develop affirmative
References: Martocchio, J (2009). Strategic Compensation. A Human Resource Management Approach Fifth Edition, Chapter 3: Contextual Influences on Compensation Practice. Retrieved April 30, 2012, from https://ecampus.phoenix.edu/content/eBoothekLibrary2/content/eReader.aspx #ch03lev1sec2.