Organizational Objectives and Total Compensation
Organizational Objectives and Total Compensation in Different Markets StudentHRM / 324Total Compensation in Biotech Industry In this paper, I assume the role of an HR consultant. I explain laws affecting my client’s business in the biotech industry. My client’s business employs 200 and is a federal contactor. A total compensation program is recommended. I support my recommendations by integrating relevant text reading from week 1 reading assignments in eCampus.Organizational Objectives and Total Compensation in Different Markets Total compensation is a broad representation of how companies and/or organizations decide to pay or compensate their employees for the job they perform day in and day out (Martocchio, 2015). A total compensation package covers many aspects such as intrinsic and extrinsic compensation. According to Martocchio, 2015, “intrinsic compensation reflects employees’ psychological mindset that results from performing their job” and “extrinsic compensation includes both monetary and non-monetary rewards. Both are a vital aspect of being an employer and employee. By using such compensation packages, companies use this tactic as a way of retaining and attaining quality employees. This has not always been the case. Employers use to work employees as hard as they could and pay them very little, minimal pay and not much regard to their well-being. Over the years, this has changed by way of laws and regulations governing employer and employee relationship (Martocchio, 2015).
Laws and Regulations The Fair Labor Standards Act of (FLSA) is one of the more known labor laws as it regulates how employers compensate employees. FSLA is responsible for our minimum wage law, established an overtime premium of time and a half for hours beyond 40 hours within a seven-day period. It also set policies and regulations for how much minors were able to be worked (Office of Financial Management, 2012). Civil Rights Act of 1964 made sure no person suffer discrimination because of race, color, national origin, sex or religion. This included areas such as the hiring process, working conditions, employee reviews and promotion opportunities (Martocchio, 2015). Equal Pay Act (EPA) of 1963 amended the FLSA, aimed at abolishing wage disparity based on sex (Martocchio, 2015). According to the EPA, it “prohibited sex-based wage discriminating between men and women in the same establishment who performs jobs that require substantially equal skill, effort and responsibility under similar working condition” (U.S. Equal Employment Opportunity Commission, 1947). Women were once paid less than men for doing the same jobs and the EPA was enacted to fix this problem.