top-rated free essay

Benefits and Compensation

By Nikkidailey2 Jul 12, 2013 1343 Words
Competitive wage and benefits packages can be an important attraction to recruits, new hires and even current employees of any organization. From the time a person begins their hunt for a new career or job position they think of the wage they need in order to fulfill their daily obligations and how the benefits a company may offer can help balance their lives outside and inside the organization. There are so many differing lifestyles and family types that organizations need to be open in their planning and need to ensure equality when creating benefits packages and pay structures. “The organization with effective compensation and benefits drives its personnel costs, manages the performance of employees and rewards the extraordinary performance” (HR Management Guide, 2011). Benefits and Compensation

Equal Pay Act (1963) and Minimum Wage
In 1963, the Equal Pay Act was established in order to assist in the elimination of wage gaps between minority groups, such as women and those of differing ethnic backgrounds. It provides that where workers perform equal work in jobs requiring "equal skill, effort, and responsibility and performed under similar working conditions," they should be provided equal pay (US Legal, 2012). Despite the efforts of many and the Equal Pay Act discrepancies still exist in the workplace when comparing women to their male counterparts. The importance of ensuring equality through human resource administration can be beneficial to both the company and employer, as well as safeguard the organization from any legal proceedings that might occur from such disparate treatment. * Minimum wage, which is governed by the U.S. Department of Labor, was established in order to protect employees and workers from being gouged by employers. It is used as a basis to ensure employees are paid a reasonable wage to avoid poverty and to establish a minimum standard of living for all wage earners. (Fitzpatrick, 2009) In 2007 the Minimum Wage Act was written to include phased increases to the federal minimum wage. This allowed for increases from it starting point in July 2007 at $5.15 to $7.25. Many states have their own minimum wage laws which are upheld as long as the employee is entitled to the higher of the two minimum wages. Incentive Pay

Incentive compensation refers to a host of variable pay schemes designed to tie pay to performance and thereby achieve gains in worker productivity. Incentive pay can be paid on any time schedule as decided by management and employees involved in the program. Incentive compensations can consist of pay in the form of: merit pay, bonuses, profit sharing, gain sharing stock options and commissions.

Incentive pay can be used on targeted individuals, executive, managers or work groups such as sales staff. When in the recruitment and hiring process incentive pay structures can be useful in attracting and maintaining individuals or groups of qualified applicants or employees with critical knowledge, skills, ability and other characteristics (KSAOs) needed to perform the job effectively and efficiently. Benefits

The rapid growth of benefits is ever changing to remain effective for employees and organizations. There are two main requirements a benefits should meet in order to qualify within an organization: there must be employee interest and it must remain cost effective for the employer in order to qualify as part of a benefit package. Plan administrators and benefits managers roles need to expand in order to maintain control of each benefit, its costs and its administration.

Numerous benefits are available depending upon the business and cost of each benefit to the employee and employer alike. Health, dental and vision are the main basis for benefits that should be afforded by organizations on behalf of their employees, even if a fair percentage is to be paid by the employee, pre-tax. Aligning benefits with other packages offered in the marketplace can be beneficial in recruitment and can help provide high morale among employees, current and future. Assurance of mandatory benefits can also be crucial, so employees are aware that they are being covered under workers compensation, unemployment insurance and that social security is being paid on their behalf. * Optional benefits programs can help entice the type of employees that an organization is looking for. The wants and needs of such benefits may differ depending upon age, social status, family and other factors not related to their position within the organization. Take for instance a new parent seeking out a daycare facility for their youngster: an assistance program for searching, dependent care accounts or even on-site daycares might be attractive benefits. Dependent care, child care and elder care can give piece of mind to caregivers of small children or elderly parents. For a single, career-minded male pension plans, 401K, or education reimbursement might be his top choices for benefits. Vacation and paid time off are a benefit that most employees seek when job hunting. Whether they are looking to go to Jamaica, spend quality time at home with kids or just need to refresh their minds time off is a crucial benefit that works for most employees. This can also tie in with holiday pay and sick pay. Flexible schedules can be assistive in the same manner, thus allowing employees a better sense of life/work balance and allowing them a bit of freedom to attend important events or to care for family members. Work-life balance can be assistive in creating loyalty and increased production amongst workers. Allowing them freedom to attend to personal matters can be helpful in relieving stressors that can negatively affect employees and their work ethics.

There are many other unique programs some organizations have created or have used in order to attract or maintain the most successful of employees. Take Google for instance, 25 all gratis cafes company-wide, the Google Plex containing bocce ball, a bowling alley, and the availability of eye brow shaping for a minimal fee. In order to recruit the best of the best Google has gone “way beyond basic” (Emerson, 2012). As executive chairman Eric Schmidt wrote in an explanation of Google's benefits, "The goal is to strip away everything that gets in our employees' way [...] Let's face it: programmers want to program, they don't want to do their laundry. So we make it easy for them to do both." (Emerson, 2012)

Companies such as Google work in effort to assist employees who are beneficial to the company’s survival and growth. Offering benefits such as laundry service, adoption assistance, paid maternity/paternity leaves can offer employees ease of mind and one less stressor in their daily life. This allows the employee to focus on their top priorities with open minds and clear of any distractions. Conclusion

From corporate standpoints in many companies the bottom line is what is seen in the end. The expertise from human resource administrators help them visualize what wages and benefits can help them accomplish and how they can affect the bottom line positively. Less turnover, higher productivity and loyalty from employees begins with their wages and benefits. If you can create the perfect scenario for the employee it makes the position irresistible to the best of the best. Wages and benefits may not be the only factors in securing and maintaining a great staff, but they are high on the list of important features for current and future employees.

Emerson, R, (2012). Google’s best benefits: the 7 top perks Google offers employees. The Huffington Post. Retrieved June 18, 2012 from Fitzpatrick, L. (2009). The minimum wage. Time Magazine U.S. Retrieved May 23, 2012, from,9171,1912408,00.html Heneman, H.G. III, Judge, T.A. & Kammeyer- Mueller, J.D. (2012) Staffing Organizations (7th
Ed.). New York: McGraw-Hill.
HR Management Guide (2011). Compensation and benefits. Retrieved June 18, 2012 from USLEGAL.COM. (2012). Discrimination Law & Legal Definition. Retrieved May 22, 2012, from

Cite This Document

Related Documents

  • Compensation and Benefits project

    ... Assignment 1 Piu Pooja Jany Palma 1. Answer: The ways differing perspectives of society, managers, and employees affect the views of compensation are: Society’s view Manager’s view Employee’s view Pay as a measure of justice Benefits as a reflection of justice in society Job losses (or gains) attributed to differences in compe...

    Read More
  • Compensation & Benefits

    ...Running Head: COMPENSATON AND BENEFITS Compensation and Benefits in the Twenty-first Century   Abstract Team platinum will explore compensation and benefits in the 21st century. Any review of total compensation must include the crucial areas of health and retirement benefits and financial compensation, as well as discuss the impli...

    Read More
  • Compensation and Benefits

    ... Compensation and Benefits Recommendations HRM 531 No matter the size of the business, there is a need to evaluate an individual business’ compensations and Benefits. Each business will be unique; rarely will two businesses have the same benefits. These benefits will show employees, and future employees, what it is worth to work f...

    Read More
  • Compensation and Benefits

    ...Course Project The Compensation and Benefits of the Dooly County School System [pic] Renee Bowens HRM430 Professor Eureka Hampton August 16, 2009 DeVry University Abstract This report will show what compensation and benefits are offered to the employees of Dooly County. It will also show how a sick leave bank would benefit the ...

    Read More
  • Compensation and Benefits

    ...Compensation and Benefits Lisa Epps BUS303 Human Resources Due Date Ashford University There are many people that would choose their life career around the benefits and compensation they may receive. Compensation is known as human resources function that deals with every type of rewards that one may receive in return for performing organi...

    Read More
  • Compensation and Benefits

    ...Compensation and Benefits: Methods, Strategies and Performances LaTonya Hopes This paper is submitted in partial fulfillment of the requirements for Human Resource Administration BUS 5273-50 Texas Woman's University School of Management Dr. Derek Crews February 8, 2013 Table of Contents Abstract ……..............................

    Read More
  • Compensation and Benefits

    ...Executive Summary: The purpose of this paper is to highlight the best practices followed by HRM and to acknowledge the importance of compensation and benefit strategies used in organizations all around the world. Compensation and Benefits are used by different organisations globally to attract, motivate and retain their employees. This paper co...

    Read More
  • compensation and benefit

    ...Chapter 1 COMPENSATION & BENEFITS Books for reference • George T Milkovich, Jerry M Newman, C S Venkataratnam.  Compensaton, Tata McGraw - Hill Educaton, 9th editon, 2009 • Dewakar Goel. Performance Appraisal And Compensaton Management: A Modern Approach, PHI, 2nd editon, 2012 • Compensaton & reward management by B.D singh. Module cov...

    Read More

Discover the Best Free Essays on StudyMode

Conquer writer's block once and for all.

High Quality Essays

Our library contains thousands of carefully selected free research papers and essays.

Popular Topics

No matter the topic you're researching, chances are we have it covered.