What Factors Should Allen And Smith Consider When Setting The Wage For The Purchasing Agent Position?
Boillard – Pay Decisions Case Study
1. What factors should Allen and Smith consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage? (include 2 citations from the text)
Allen and Smith should consider the internal and external factors when setting the wage for the purchasing agent position. The internal equity refers to the perceived fairness of the pay structure within a firm (Gomez-Mejia, Balkin, & Cardy, 2013, page 313). The external equity refers to the perceived fairness in pay relative to what other employers are paying for the same type of labor (Gomez-Mejia, Balkin, & Cardy, 2013, page 313). Internal factors can include the organizations compensation strategy, job worth, and the ability of the employer to pay. External factors include the labor market conditions, pay rates of the area, and collective bargaining. …show more content…
The Fair Labor Standards Act (FLSA) is the compensation law that affects most pay structures in the United States (Gomez-Mejia, Balkin, & Cardy, 2013, page 339). This act set the federal minimum wage in which employers must abide by. The employer may go above this set wage but are not allowed to drop below. The Equal Pay Act (EPA) is an amendment to the FLSA (Gomez-Mejia, Balkin, & Cardy, 2013, page 341). If men and women are doing the same job in terms of skill, working conditions, and responsibility, they are to be paid the same amount. The Internal Revenue Code (IRC) will be used to determine how much of their earnings the employees can keep (Gomez-Mejia, Balkin, & Cardy, 2013, page
1. What factors should Allen and Smith consider when setting the wage for the purchasing agent position? What resources are available for them to consult when establishing this wage? (include 2 citations from the text)
Allen and Smith should consider the internal and external factors when setting the wage for the purchasing agent position. The internal equity refers to the perceived fairness of the pay structure within a firm (Gomez-Mejia, Balkin, & Cardy, 2013, page 313). The external equity refers to the perceived fairness in pay relative to what other employers are paying for the same type of labor (Gomez-Mejia, Balkin, & Cardy, 2013, page 313). Internal factors can include the organizations compensation strategy, job worth, and the ability of the employer to pay. External factors include the labor market conditions, pay rates of the area, and collective bargaining. …show more content…
The Fair Labor Standards Act (FLSA) is the compensation law that affects most pay structures in the United States (Gomez-Mejia, Balkin, & Cardy, 2013, page 339). This act set the federal minimum wage in which employers must abide by. The employer may go above this set wage but are not allowed to drop below. The Equal Pay Act (EPA) is an amendment to the FLSA (Gomez-Mejia, Balkin, & Cardy, 2013, page 341). If men and women are doing the same job in terms of skill, working conditions, and responsibility, they are to be paid the same amount. The Internal Revenue Code (IRC) will be used to determine how much of their earnings the employees can keep (Gomez-Mejia, Balkin, & Cardy, 2013, page