sometimes referred to as Medi-Gap plans. The benefits for all of these plans are mandated by the…
Indirect compensation systems include mon monetary remuneration provided to employees including annual leave, overtime pay, health insurance, pension funds,…
2. Pay specifically designed to energize, direct, or control employees' behavior is known as A. empowerment pay. B. exempt pay. C. indirect pay. D. incentive pay.…
Employee benefits need to be designed to create a necessary value to the employees and the company. They not only need to meet the legal requirements, but they must be competitive, rewarding, flexible, and non-discriminatory. The employer should provide standard and optional benefits to employees. Standard benefits are should include vacation leave, sick leave, emergency/bereavement leave healthcare coverage, cost of living allowances, and so on. Optional benefits should include a list of options for employees to choose that may fit their needs, such as maternity leave (women) and paternity leave (men).…
The focus of this section of the analysis is to decide on the allocation of pay methods in order to motivate and retain employees while also achieving external market consistency. The first step was to decide on an allocation mix consisting of base pay, short term incentives, long term incentives, and benefits for each individual job structure. Factors such as importance to strategic goals, need for retention, long term impact, and skill level factored into this decision. The result was…
As a result, firms often use compensation plans combined fixed salaries with one or more variables based on performance. Economists have been trying hard to work out effective plans. Nevertheless, there are also doubts on whether or not incentive compensation works. Alfie Kohn has offered analysis on reasons for the failure of incentive programs. He states that incentive rewards “have failed to offer a convincing argument for behavioral manipulation”. (Kohn,…
There are several laws that relate to compensation plans and the different aspects of pay. The first being The Fair Labor Standards Act of 1938. “The Fair Labor Standards Act is responsible for establishing minimum wage, recordkeeping regulations, overtime pay rates and youth employment standards, which affect employees in both the private sector and in Federal, State and local governments” (What you should...n.d.).…
* Similar to contingent pay, short term incentives are located based on past performance. However, incentives are not added to the base pay and are only temporary pay adjustment based on the review period.…
Due to globalization and specialization, talented and desirable employees are a commodity. Companies compete with other companies in the current hiring market using compensation packages to attract these employees. Total compensation (or components thereof) is perhaps one of the leading reasons for a person to choose one company over another. For some, compensation is the sole reason for engaging in employment while others are more interested in the benefits. Gomez-Mejia, Balkin, and Cardy (2016) explain compensation (notably the greatest expenditure for most companies) has three components: the base rate (a fixed amount paid on a regular interval), incentives (performance reward system), and benefits (indirect financial remuneration).…
Long-established rewards systems usually have had a large proportion of the total package as base pay and just a small portion tied to performance. In today’s world new and more strategic rewards systems, have come to be implemented which are more aligned with overall organizational strategies. These new rewards include a performance based variable pay, skill base pay and recognition pay. In researching this new trend it has been shown to have a very positive effect on employee productivity and firm performance.…
For over 50 years, public policy has played a role in determining what benefits an employee receives. First, the government mandates certain benefits: social security, Medicare, unemployment insurance, and workers’ compensation. (Ivancevich, 2010) There are certain advantages and disadvantages to each benefit.…
Explanation: Benefits are indirect financial and nonfinancial payments employees receive for continuing their employment with the company. They include things like health and life insurance, pensions, time off with pay, and child-care assistance.…
Chapter conclusion: Benefits for employees are very important for companies. Benefits for employees include various insurance plans, paid vacation days, paid sick leave, paid days off, etc. Different companies need to establish different benefit plans based on their company conditions. In brief, benefit in one of the bridge between employers and employees.…
S, Megan (2010) eHow:Money. What is the Difference Between Job Evaluation and Employee Evaluation. Retrieved from…
Employee benefits could possibly be one of the most important factors that employees look at when deciding on a place of employment. As employers are not legally required to grant all benefits, some voluntarily grant legally not required benefit as a way of differentiating their organization from their competitors. Because of the many forces that must be weighed and kept in balance for a benefits program to succeed, benefit program should be compatible with the organizations strategic compensation plan. Employee benefits can be important to both organization and employees. It could be assumed that organizations use benefit programs as of way of attracting and retaining talent. Also, it could be possible that benefit plans are important to employees as well for reasons such as balancing work-life or a sense of security.…