Employee Compensation - 3762 Words

EMPLOYEE COMPENSATION According to Gary Dessler compensation refers to all forms of pay going to employees and arising from their employment. The phrase all forms of pay in the definition does not include non-financial benefits, but all the direct and indirect financial compensations. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction. Compensation systems are basically developed to reward employees behavior so that they are lead to accomplish organizations overall goals and objectives. How is compensation used? Compensation is a tool used by management for a variety of†¦show more content†¦Conduct a job analysis of all positions. †¢ Conduct a general task analysis by major departments. What tasks must be accomplished by whom? †¢ Get input from senior vice presidents of marketing, finance, sales, administration, production, and other appropriate departments to determine the organizational structure and primary functions of each. †¢ Interview department managers and key employees, as necessary, to determine their specific job functions. †¢ Decide which job classifications should be exempt and which should be nonexempt. †¢ Develop model job descriptions for exempt and nonexempt positions and distribute the models to incumbents for review and comment; adjust job descriptions if necessary. †¢ Develop a final draft of job descriptions. †¢ Meet with department managers, as necessary, to review job descriptions. †¢ Finalize and document all job descriptions. Evaluate jobs. †¢ Rank the jobs within each senior vice presidents and managers department, and then rank jobs between and among departments. †¢ Verify ranking by comparing it to industry market data concerning the ranking, and adjust if necessary. †¢ Prepare a matrix organizational review. †¢ On the basis of required tasks and forecasted business plans, develop a matrix of jobs crossing lines and departments. †¢ Compare the matrix with data from both the company structure and the industrywide market. †¢ Prepare flow charts of all ranks for each department for ease of interpretation and assessment. †¢ Present dataShow MoreRelatedEmployee Compensation3771 Words   |  16 PagesEMPLOYEE COMPENSATION According to Gary Dessler compensation refers to all forms of pay going to employees and arising from their employment. The phrase all forms of pay in the definition does not include non-financial benefits, but all the direct and indirect financial compensations. Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfactionRead MoreEmployee Compensation And Benefits Package Essay905 Words   |  4 PagesIntroduction – Employee Compensation and Benefits This paper will outline an employee compensation and benefits package for a new hire for a secretary for the department. First, it will describe the organization I chose for designating a compensation package. Next, this paper will develop an employee compensation and benefits package for this new position. This paper will outline an employee compensation and benefits package for a new hire for a secretary for the department. First, it will describeRead MoreEmployee Compensation Programs Essay1416 Words   |  6 PagesBenefits have most definitely changed throughout the past years. According to Compensation, during 1880 people worked approximately 14 hours every single day except on Sundays and would only receive a raise if they stayed with the company for five years and if the company prospered during that time (Gerhart, 2011, p. 414). Over the next couple of years, employees began seeing work hours change from 60-64 hours per week to 54 hours by the year 1930. Eventually, em ployees were able to have holidaysRead MoreEmployee Compensation And Benefits Packages Essay1537 Words   |  7 PagesIntroduction In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experienceRead MoreEmployee Compensation And Benefits Packages Essay1245 Words   |  5 PagesEmployee Compensation and Benefits Organizations create compensation and benefits packages in order to attract the best talent. In today’s global economy it is imperative that organizations offer compensation packages that are competitive in order to recruit the very best talent in the world. However, in order to be successful, compensation packages must align with business strategies. Authors â€Å"Mathis, Jackson, and Valentine (2014) explain that an effective total rewards approach balances theRead More Employee Compensation and Turnover Essay2623 Words   |  11 PagesEmployee Compensation and Turnover Often, an excessively high turnover rate compared to the industry standard is a symptom of problems within the organization (Gomez-Mejia, Balkin Cardy 1998). Managers must realize that high staff turnover can prove costly, particularly to small businesses (Oliver 1998). Strategies have to be crafted that will minimize turnover and the costs associated with it. Although strategies used to retain employees can be expensive, turnover is a cyclical problemRead MoreEmployee Compensation and Corporate Culture- What Works1736 Words   |  7 PagesAmir Hejazi Employee Compensation and Corporate Culture: What Works? When determining what method to use to compensate employees, a company must be aware of the impact that different compensation methods can have on employee performance, and on organizational culture. Unfortunately, there is no one-size-fits-all answer to the question of employee compensation. Some employees will respond very well to a program that other employees might balk at. Similarly, some companies or industries may flourishRead MoreEmployee Compensation : A Company2085 Words   |  9 Pagescompany you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing. Employee compensation is very important in any organization since it helps to mark the established relationship between the employer and employee. Compensation usually encompasses many motivating factors that act as a catalyst to an employee in the cause of work. It has been discovered that organizations with good compensation practices are able to maintainRead MoreEmployee Compensation Proposal1913 Words   |  8 Pagesnot received a proper raise in a couple of years. All while the cost of living has increased. How this would be accomplished would be by proposing a bill to our local governor for him to pass the bill. In order for our employees to receive the compensation they deserve. The nature and extent of the problem is that my current employer does not pay their employees an hourly wage of $10.05/hr during the periods of travel from client to client. Instead they offer their employees $0.38/mile. The factorsRead MoreEmployee Compensation And Relational Analysis1424 Words   |  6 Pagesfor Employee Compensation of June 2017, release by the Bureau of Labor Statistics, the average compensation per hour worked in the United States in the month of June was $35.28. The wages and salaries of these workers were a total of $24.10 per hour correspondingly accounting for 68.3% of the cost. The benefits averaged a total of $11.18 per hour likewise reporting for 31.7% of the cost. (Bureau of Labor Statistics, 2017) I incorporated an attached a pie chart to show the total compensation for all