Fair and Equitable Compensation
Fair and Equitable Compensation
MGMT 365
04/01/2012
MGMT 365
04/01/2012
Fair and Equitable Compensation Compensation is an important factor in the business world; both for employees and employers. Employees are trying to get what they feel they are worth. On the other side employers are trying to get quality workers at the best price they can; this is so they can increase their bottom line. Depending on which side you are on, the views of what is fair and equitable varies. The key is to come to an agreement that both can be happy with. The book Strategic Compensation by Martocchio, states “compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs” (P3). Intrinsic represents the feeling that the employee gets from his job (is the job meaningful and give a sense of worth). Extrinsic is the actual dollar amount in combination with the benefits received. To some the benefits that a company offers can be just, if not more important than the pay one receives. With the American economy the way it is, everyone is struggling to get a head. Employees are an important commodity in an organization. Without them business would not be able to happen. Sometimes organization may lose focus of that and there becomes a power struggle between the two sides. People want to feel that they are valued by the company they work for. One way that a company can do this is through compensation. I feel that fair and equitable compensation is where an employee is paid a wage that they can use to provide for the needs and wants of their family. If an employee works full time then they should at least make enough to provide for the necessities in life (food, clothing, shelter). A company should also provide health care for its employees. Before the economy took a hit, companies use to offer a hundred percent paid health benefits. Now the majority make you pay for your health insurance which many can’t afford. The downfall for a
MGMT 365
04/01/2012
MGMT 365
04/01/2012
Fair and Equitable Compensation Compensation is an important factor in the business world; both for employees and employers. Employees are trying to get what they feel they are worth. On the other side employers are trying to get quality workers at the best price they can; this is so they can increase their bottom line. Depending on which side you are on, the views of what is fair and equitable varies. The key is to come to an agreement that both can be happy with. The book Strategic Compensation by Martocchio, states “compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs” (P3). Intrinsic represents the feeling that the employee gets from his job (is the job meaningful and give a sense of worth). Extrinsic is the actual dollar amount in combination with the benefits received. To some the benefits that a company offers can be just, if not more important than the pay one receives. With the American economy the way it is, everyone is struggling to get a head. Employees are an important commodity in an organization. Without them business would not be able to happen. Sometimes organization may lose focus of that and there becomes a power struggle between the two sides. People want to feel that they are valued by the company they work for. One way that a company can do this is through compensation. I feel that fair and equitable compensation is where an employee is paid a wage that they can use to provide for the needs and wants of their family. If an employee works full time then they should at least make enough to provide for the necessities in life (food, clothing, shelter). A company should also provide health care for its employees. Before the economy took a hit, companies use to offer a hundred percent paid health benefits. Now the majority make you pay for your health insurance which many can’t afford. The downfall for a
Cited: Lane, June B. "5 Tips for Fair Employee Compensation." Www.asaecenter.org. May 2011. Web. 28 Mar. 2012. <http://www.asaecenter.org/Resources/ANowDetail.cfm?ItemNumber=71516>. Martocchio, Joseph. Strategic Compensation: A Human Resource Management Approch. 5th ed. Upper Saddle River: Pearson, 2009. Print. "Wages." U.S. Department of Labor. Web. 30 Mar. 2012. <http://www.dol.gov/dol/topic/wages/meritpay.htm>.