Bus 409 Compensation Practice Paper
Assignment 1: Compensation Practice
BUS 409- Strategic Compensation
October 28, 2014
Yahoo’s compensation strategy is guided by the need to increase performance. Its best compensation practice and compensated-related challenges are in retaining key employees and attracting new talent while keeping costs under control. Its compensation practices can have a positive or negative impact on the company and its stakeholders. On the other hand, laws, unions and market factors impact the company’s compensation practice. Yahoo’s compensation strategy is a competitive compensation strategy. It does not follow the traditional route; however, it aligns with the values and goals of the organization. (Yahoo- about us, 2014).
Yahoo Inc. was …show more content…
Yahoo expects employees to work hard; therefore, the benefits and perks offered by the company reward them accordingly. Pay, benefits and careers are key components of Yahoo compensation strategy. Competitive pay rates attract skilled workers and reduce turnover rates because it aligns with company values and goals. Attractive benefits such as stock options, 401K (with company match), pre-tax savings, income protection (provided to all employees at no extra cost), tuition reimbursement and consulting subsidies give Yahoo a real competitive advantage and are used as a reward and recognition tool. Stable careers represent the future value and the opportunity to grow. (Yahoo- about us, …show more content…
Employment laws creates a balance of power that is maintained among employee and employers to ensure that the “pursuit of goals by any one group does not undermine others’ goals, particularly those with the least amount of power- employees” (Martocchio, 2013, p. 26). The income continuity, safety and work hours legislation was designed and enacted for individuals if they should become unemployed due to poor business conditions or workplace injuries, in an effort to stabilize their income. The Fair Labor Standards Act of 1938 (FLSA) addresses how Yahoo must compensate their employees if they are being paid minimum wage, entitled to overtime pay and the child labor provisions they must adhere to if applicable. For example, since the federal minimum wage is $7.25, Yahoo cannot pay any of its employees below that amount unless they are students. Also, Yahoo must pay its workers “at a rate equal to time and one-half for all hours worked in excess of 40 hours within a period of 7 consecutive days. In this case, if the cafeteria worker’s regular hourly rate at Yahoo is $20 for 40 hours, all hours beyond that with a 7-day timeframe will be calculated at $30 per hour. The Equal Pay Act of 1963 makes it illegal for Yahoo to discriminate sexually in the pay employees are compensated for performing equal work. This means that males and females performing the same tasks and duties must receive equal
BUS 409- Strategic Compensation
October 28, 2014
Yahoo’s compensation strategy is guided by the need to increase performance. Its best compensation practice and compensated-related challenges are in retaining key employees and attracting new talent while keeping costs under control. Its compensation practices can have a positive or negative impact on the company and its stakeholders. On the other hand, laws, unions and market factors impact the company’s compensation practice. Yahoo’s compensation strategy is a competitive compensation strategy. It does not follow the traditional route; however, it aligns with the values and goals of the organization. (Yahoo- about us, 2014).
Yahoo Inc. was …show more content…
Yahoo expects employees to work hard; therefore, the benefits and perks offered by the company reward them accordingly. Pay, benefits and careers are key components of Yahoo compensation strategy. Competitive pay rates attract skilled workers and reduce turnover rates because it aligns with company values and goals. Attractive benefits such as stock options, 401K (with company match), pre-tax savings, income protection (provided to all employees at no extra cost), tuition reimbursement and consulting subsidies give Yahoo a real competitive advantage and are used as a reward and recognition tool. Stable careers represent the future value and the opportunity to grow. (Yahoo- about us, …show more content…
Employment laws creates a balance of power that is maintained among employee and employers to ensure that the “pursuit of goals by any one group does not undermine others’ goals, particularly those with the least amount of power- employees” (Martocchio, 2013, p. 26). The income continuity, safety and work hours legislation was designed and enacted for individuals if they should become unemployed due to poor business conditions or workplace injuries, in an effort to stabilize their income. The Fair Labor Standards Act of 1938 (FLSA) addresses how Yahoo must compensate their employees if they are being paid minimum wage, entitled to overtime pay and the child labor provisions they must adhere to if applicable. For example, since the federal minimum wage is $7.25, Yahoo cannot pay any of its employees below that amount unless they are students. Also, Yahoo must pay its workers “at a rate equal to time and one-half for all hours worked in excess of 40 hours within a period of 7 consecutive days. In this case, if the cafeteria worker’s regular hourly rate at Yahoo is $20 for 40 hours, all hours beyond that with a 7-day timeframe will be calculated at $30 per hour. The Equal Pay Act of 1963 makes it illegal for Yahoo to discriminate sexually in the pay employees are compensated for performing equal work. This means that males and females performing the same tasks and duties must receive equal