Getting and Using Rubic for Compensation Assignment- Hr 586
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This is an assignment completed for HR 586 -COMPENSATION at keller graduate school.
Getting and Using Compensation
Information Rubric.
(A case study)
Course HR 598: Compensation
Question One
Paying employee adequately and fairly in relative to job duties and responsibility performed as important to the world economy and values is of great importance and thus bring about job satisfaction and employee motivation in a working environment. In this case study “Getting and using Compensation Information”, this paper featured five different Jobs: Compensation Manager, Human Recourses Manager, Training Specialist, Human Resources Assistant and Accounting Manager and there median, 25th, 27th percentile base wage and the total cash compensation (www.salary.com).
Using National average for the data collated as evident from Exhibit 1, from both compensation rates (Base Salary and the Total Cash Compensation), on the average the Compensation Job Title had the highest salary with $97, 566 while Human Resources Assistant employee gets paid less ($37, 252) as compared to other Jobs of interest. The data collected simply certify what expected and being the US National average, various compensable factors had been put before arriving at those figures.
However, the differences in salary of these Jobs are based on law of business and economics: Demand and Supply. Since there is a direct correlation to the wage of a job filled by an employee and the importance or value of the position being filled the very shortage of professional in a specific field of the labor market pave way for an increase in salary for such a job title. The employee numbers who are willing to accept an offer at the current wage rate also contributed to the differences. The point is that, if there is a job that requires a professional (a licensed job), not all employees can fit to it considering education, experience and the rest, such positions have higher rate.
Conclusively, Milkovich (2010) recalls that pay level is the average of the array of rates inside an organization, and such rates are arrived at based on some compensable factors such as education, experience, etc which determines and justifies the rate whether to be increase or decrease.
EXHIBIT 1 Pay Differences by Job Titles using US National average
Base Salary
Total Cash Compensation
Median
Compensation Manager
$ 84,242.00
$ 111,907.00
$ 88,296.00
$ 124,154.00
$ 97,566.00
Human Resources Manager
$ 71,841.00
$ 98,574.00
$ 74,497.00
$ 106,094.00
$ 90,587.00
Training Specialist
$ 39,747.00
$ 51,870.00
$ 40,435.00
$ 53,135.00
$ 48,672.00
Human Resources Assistant
$ 30,617.00
$ 39,053.00
$ 30,962.00
$ 39,785.00
$ 37,252.00
Account Manager
$ 71,263.00
$ 91,138.00
$ 73,956.00
$ 97,748.00
$ 80,786.00
Source: www.salary.com
Question Two.
In free market, there are different bonuses as measured in percentage of the actual base salary. Some bonuses might be given employees a certain share of the company profits based on the companys performance, another may be incentives given to individual employee. Other could be accumulated working hours benefits converted to cash, employee could also earn bonus for being hired or getting a friend a job at the same company.
However, all these vary in relation to each job. In consideration of Jobs under review, they have different bonuses as a percentage of their base salaries. As already mentioned, bonus payment varies from organization to another as it affects jobs. Some Bonus payments are specifically paid based on the agreement signed at the time of hiring. In another vein, such executive bonus in other organization might be tied to performance. Those differences in bonus are also significant to the base salary. Professional career bonus will be absolute to the job and vise versa.
Generally, bonus pay is used to improve employee morale, motivation, and productivity that produce job satisfaction. As long as bonus pay is discretionary by the employer, it is not considered to be a contract. The differences in the percentage of each job base salary meant for bonus is equally justified and was based on or may be subjected to on individual organization performance.
Question Three.
Pay bonus may take different shapes and is mainly used by many organizations as a thank you package to employees or a team that produces result. Equally used to orchestrate employee loyalty, improve motivation. Indeed, it varies from organization to another the form it takes. Some organization may give the option of procuring companys stock or in the alternative cash. All depends on organizational discretion.
However, the data collated for those jobs under review did not present the value of any organization stock as this is unrealistic and unpredictable. Procurement or giving out stock as a means of saying thank you (bonus) to employee by an employer validates the hard work of individual employee. And the only way to know this is result. The value of stock not added has this implication in that, this is the US National average and upon hiring and company performance is satisfactory, organization at that time may decide the option of a stock. Listing it at the time of hiring or presenting it in the quick survey as source from Slary.com may impact each organization not being able to perform and go bankruptcy.
The very value of stock option is always tagged to organization performance and generally not on contract. It is based on her discretion.
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