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What is compensation? Newman, Gerhart, & Milkovich, (2017) claims compensation “…does not mean the same thing to everyone” (p. 5). Your view differs depending on your perspective. For this assignment: Identify and explain any common views of compensation shared by Employees:The pay individuals receive in return for the work they perform. Employers: The total cost of maintaining and retaining a workforce, including things like salary, insurance, retirement, bonuses, etc. Society: “Some people see pay as a measure of justice”(Newman, Gerhart & Milkovich, n.d.) Identify conflicting views of compensation among employees, employers, and society. In my experience the largest conflict of pay is that employees most always believe they are entitled to more or higher pay, employers are always trying to identify ways to lower costs and pay is usually at the forefront of strategies discussed for cost control and society looks at compensation as measure of justice. From your own personal experience as an employee, provide an example that best illustrates either an in common or conflicting view of compensation in relation to one or more of the other groups (i.e., employer, employees, society). As an employee I have found that I search for positions that offer the highest level of compensation. I have had to at times fight for increases in my personal compensation based on the level of value I offered to he company. I have had to manage the idea of increased costs that the business must absorb to offer higher pay. I have experienced that in most companies the employer will offer the minimum to retain an employee. Strategic Compensation. After considering the four steps in developing a compensation strategy and the different stakeholder involved, describe which total compensation strategy might work best at your organization, or one of your choice. Two forms of pay structure are in use at my place of employment, We are union so the hourly are given pay based on job classification and time. The salary team is based on merit increases for bonuses and salary increase. I think these two pay structures work well in my place of employment. Newman, J., Gerhart, B., & Milkovich, G. Compensation (p. 5). New York: McGraw-Hill Education.

Answer 1

After reviewing the entire study of strategic compensation, the best compensation method is the hourly wage system for the employees. Implementation of an hourly wage strategic compensation system is the best way to satisfy the employees and avoid complains regarding the unethical payment methods. The approach of hourly compensation system by the management bodies of the human resource department of any company is used to attract the employees according to their talents, performances, and skills that they acquire within the organization to accomplish the goal.

Hourly pay is the most used direct compensation system that encourages not only the experienced or skilled employees but it is also appropriate for the unskilled or semi-skilled persons. This type of compensation system also encourages the employees who are willing to do the job on a part-time or freelancing basis.

Though the hourly paid employees earn less than the salaried person, there are significant benefits associated with hourly wages. Hourly paid employees are compensated by the set of hourly rates with guaranteed overtime payment procedures.

The hourly payment method also is helpful for the companies as employers are not liable to take responsibility for those employees. There would be a fair contract between employees and employers and no hidden terms and conditions are associated in this type of payment system. The employer has to pay fewer amounts to the hourly wage employees than the salaried employees.