Five Year Career Plan
Total Compensation Methods
With a steady increase in unemployment, outsourcing, and globalization, salary and benefit packages are undergoing constant change. Compensation has and always will be a key element of choice in today’s job market for candidates seeking employment. Due to a declining economy, employers have been forced to become more creative in their benefit and compensation packages offered to employees. Strategic planning has become the key element in a successful human resource department of large corporations throughout the United States. Our learning team paper will analyze the impact of three key salary methods on employees and organizations, explore three benefit packages, and explain how salary and administration strategies relate to organizational culture and performance.
The importance of a company’s ability to sustain a balance between employee and company interests is significant. Compensation is defined as the methods and practices of maintaining balance between interests of operating the company within the fiscal budget and attracting, developing, retaining, and rewarding high quality staff through wages and salaries which are competitive with the prevailing rates for similar employment in the labor markets. (HR Guide, 2008)
A strong awareness of the overall job market is necessary for any organization that wishes to hire a job candidate who will understand and be able to participate in the organization’s culture. The salaries paid by an organization considerably affect the type of job candidates who will seek a position within the organization.
According to Noe, Hollenbeck, Gerhart, and Wright (2004), if employees conclude that they are under rewarded, they are likely to make up the difference in one of three ways. They might put forth less effort, find a way to increase their outcomes, or withdraw by leaving the organization. (p. 355) Therefore, it is imperative that an organization is able to create a pay structure that allows
With a steady increase in unemployment, outsourcing, and globalization, salary and benefit packages are undergoing constant change. Compensation has and always will be a key element of choice in today’s job market for candidates seeking employment. Due to a declining economy, employers have been forced to become more creative in their benefit and compensation packages offered to employees. Strategic planning has become the key element in a successful human resource department of large corporations throughout the United States. Our learning team paper will analyze the impact of three key salary methods on employees and organizations, explore three benefit packages, and explain how salary and administration strategies relate to organizational culture and performance.
The importance of a company’s ability to sustain a balance between employee and company interests is significant. Compensation is defined as the methods and practices of maintaining balance between interests of operating the company within the fiscal budget and attracting, developing, retaining, and rewarding high quality staff through wages and salaries which are competitive with the prevailing rates for similar employment in the labor markets. (HR Guide, 2008)
A strong awareness of the overall job market is necessary for any organization that wishes to hire a job candidate who will understand and be able to participate in the organization’s culture. The salaries paid by an organization considerably affect the type of job candidates who will seek a position within the organization.
According to Noe, Hollenbeck, Gerhart, and Wright (2004), if employees conclude that they are under rewarded, they are likely to make up the difference in one of three ways. They might put forth less effort, find a way to increase their outcomes, or withdraw by leaving the organization. (p. 355) Therefore, it is imperative that an organization is able to create a pay structure that allows
References: Hansen, F. (2004). Turnover Myth Workforce Management, 84. Retrieved from http://proquest.umi.com/pqdweb?vinst=PROD&fmt=6&startpage=-1&clientid=2606&vname=PQD&RQT=309&did=852909251&scaling=FULL&vtype=PQD&rqt=309&cfc=1&TS=1207310524&clientId=2606 HR-Guide.com (2008) Compensation. Retrieved on April 6, 2008, from the Worldwide Web http://www.hr-guide.com/compensation.htm Salary Survey, (June, 2004). IOMA, Vol. 4, Issue 6. Retrieved from http://web.ebscohost.com/ehost/pdf?vid=5&hid=116&sid=0151d637-7a4f-4a97-a011-66f2ff30b9a7%40sessionmgr2 Noe, R., Hollenbeck, J., Gerhart, B., and Wright, P, (2004). Fundamentals of Human Resource Management, McGraw-Hill/Irwin, New York, NY