Question

Discuss significant legal issues related to wage and benefit administration.

Discuss the pros and cons of minimum wage legislation.

discusses some of the skills and traits a competent compensation needs to possess. Does the Compensation Manager position appeal to you as a career goal? Why or why not?

Answer 1

PROS AND CONS OF MINIMUM WAGE LESGISLATION.

PROS

Minimum wage legislation is a law which provides safeguard to the employees and prohibits the employers to exploit the employees on account of compensation. Minimum wage is set in almost all parts of the world. Rate depends upon the economic situation of the country.

HIGH MORAL OF THE EMPLOYEES

The employees are motivated by the amount of compensation they recieve. They work efficiently when they know that they will get equitable returns for the same.

When all the wagers work with this enthusiasm, it ultimately increases the efficiency of the business. Minimum wage law helps in reducing corruption as whole.

GOOD MARKET REPUTATION OF THE BUSINESS

The business which adheres to the minimum wage compliances maintains a good reputation in the market. Workers are willing to get employed in such an organization in which they feel secure. This impacts the business overall market value.

CONS

MAY GIVE RISE TO BLACK WAGES:

The firms may pay the minimum wage through cheques, but could not afford it all the time, so in order to cope up with the work requirements they call for workers who are ready to work on cash. Cash culture exploits the wagers,which ultimately effects the standard of living of the land.

EMPLOYEES LAYOFF AND UNEMPLOYMENT:

The hike in minimum wages as per the federal law may put the companies in that position where they have no other option than laying off. Economic and government departments forecast the level of unemployment which the hike in minimum wage can create. This happens because of the non-tendancy of the firms to handle such huge amount of salaries and wages.

SKILLS AND TRAITS WHICH A COMPETENT COMPENSATION MANAGER SHOULD POSSESS.

Overall the work is related to a Human Resource manager, however to provide a better level of focus on this area of the organization it is recommendatory for the companies to have a separate compensation managers.

The work of these managers is to control the pay structure of the entity. It is an important area because it is directly related to the workers and federal laws at the same time.

A good manager should have good analytical skills, he should know about the competitive rates which exist in the market, he is responsible to set the wage laws for his organization, he should have a good amount of knowledge about the federal laws so that the company does not violate any of the compliances.

Compensation Manager's job is an appealing career. One has to be good with people and good with the laws at the same time. One who possesses these qualities should dig in more in this area to acquire specialisation. Companies of present times have to exist in the competitive environment and they seek for specialisation in almost every area of the business. Particularly they take care of the areas which involves laws and compliances in order to avoid any disruptions and to work smoothly.