LT_Total_Comp_Methods[1] - Running head: TOTAL COMPENSATION...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Running head: TOTAL COMPENSATION METHODS PAPER 1 Total Compensation Methods Paper Robert Miley Bobby Washington Eupeterson Lewis Tiffany Avery University Of Phoenix Human Resources Management MGT 431 Jennie Wong November 09, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Total Compensation Methods Paper Compensation is a valuable part of an employer’s cost. Pay is an exchange of money (or other measurable means) for services an employee provides. Compensation varies from hourly pay rates to commission, includes salaries, bonuses, and flexible spending dollars. A company may include other perks with compensation such as reimbursement accounts, profit sharing, benefits (i.e., medical and dental), and a 401k savings retirement fund. Noe and Hollenbeck (2007) states, “From the employer’s point of view, pay is a powerful tool for meeting the organization’s goals” (p. 360, para 2). To a company, pay is more than offering employees a respectable wage that is fair; thus, the employees should understand one’s work effort should align with the company’s mission and vision. The Department of Labor (2010) states, “The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments” (The Fair Labor Standards Act, para 1). The FSLA of 1938 is a fair standard in which employees must pay livable wages to employees. As one analyzes methods of compensation, effects of benefit programs, and salary of benefit administration salaries, one can determine the effects and impacts of different types of compensation. Salary comparisons are important when determining a compensation method. A salary comparison allows employees to evaluate the job position to determine the job ranks for an average salary. Incentive compensation (based on performance) measures an employee’s performance and offers bonuses as a means to perform better and gain more business for the company.
Background image of page 2
For example, managers may offer employee in sales the incentive as part of the compensation itself or as a bonus. Benchmarking is one technique for employers to compare job
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 7

LT_Total_Comp_Methods[1] - Running head: TOTAL COMPENSATION...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online