Employers know that it is tough to find and keep good talent. As a result, more companies are offering very competitive benefits packages. It might be difficult for a smaller company to compete with bigger companies because a smaller company might not have the financial means to do so.
People look for jobs that not only suit their creativity and talents, but compensate them—both in terms of salary and other benefits—accordingly.
Compensation is also one of the fastest changing fields in Human Resources, as companies continue to investigate various ways of rewarding employees for performance.
A wage is based on hours worked. Employees who receive a wage are often called "non-exempt. In general, exempt employees include executives, administrative and professional employees, and others as defined by the Fair Labor Standards Act of These groups are not covered by minimum wage provisions.
Non-exempt employees are covered by minimum wage as well as other provisions. It is important to pay careful attention to these definitions when determining whether an individual is to receive a wage or a salary.
Improper classification of a position can not only pose legal problems, but often results in employee dissatisfaction, especially if the employee believes that execution of the responsibilities and duties of the position warrant greater compensation than is currently awarded.
First and foremost, wages must be set high enough to motivate and attract good employees. They must also be equitable—that is, the wage must accurately reflect the value of the labor performed. In order to determine salaries or wages that are both equitable for employees and sustainable for companies, businesses must first make certain that they understand the responsibilities and requirements of the position under review.
The next step is to review prevailing rates and classifications for similar jobs. This process requires research of the competitive rate for a particular job within a given geographical area.
Wage surveys can be helpful in defining wage and salary structures, but these should be undertaken by a professional when possible to achieve the most accurate results.
In addition, professional wage surveys can sometimes be found through local employment bureaus or in the pages of trade publications. Job analysis not only helps to set wages and salaries, but ties into several other Human Resource functions such as hiring, training, and performance appraisal.
As the job is defined, a wage can be determined and the needs for hiring and training can be evaluated. The evaluation criteria for performance appraisal can also be constructed as the specific responsibilities of a position are defined.
Other factors to consider when settling on a salary for a position include: These laws define certain aspects of pay, influence how much pay a person may receive, and shape general benefits plans. Small business owners should be thoroughly familiar with it.
This act contains five major compensation laws governing minimum wage, overtime pay, equal pay, recordkeeping requirement, and child labor, and it has been amended on several occasions over the years.
Most of the regulations set out in the FLSA impact non-exempt employees, but this is not true across the board. The Equal Pay Act of is an amendment to FLSA, which prohibits differences in compensation based on sex for men and women in the same workplace whose jobs are similar. It does not prohibit seniority systems, merit systems, or systems that pay for performance, and it does not consider exempt or non-exempt status.
In addition, the United States government has passed several other laws that have had an impact, in one way or another, on compensation issues.
Increases can be given for a variety of reasons, but are typically given for promotions, merit increases, or cost of living increases. The Hay Group points out that there is less distinction today between merit increases and cost of living increases: Employees have come to expect them.
Often, it includes a set salary or wage, a set schedule for merit increases, and a set benefits package. Benefits packages became popular after World War II, when wage controls made it more difficult to give competitive salaries.The Federal Employees' Compensation Act (FECA), 5 U.S.C.
et seq., establishes a comprehensive and exclusive workers' compensation program which pays compensation for the disability or death of a federal employee resulting from personal injury sustained while in the performance of duty.
The FECA, administered by OWCP, provides benefits for. Compensation and benefits (abbreviated “C&B”) is a sub-discipline of human resources, focused on employee compensation and benefits policy-making.
While compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development. Prominent examples of benefits are insurance (medical, life, dental, disability, unemployment and worker's compensation), vacation pay, holiday pay, and maternity leave, contribution to retirement .
Compensation and benefits (abbreviated “C&B”) is a sub-discipline of human resources, focused on employee compensation and benefits lausannecongress2018.com compensation and benefits are tangible, there are intangible rewards such as recognition, work-life and development.
As part of its competitive employee compensation strategy, every organization should consider a mix of compensation methods that include salary, benefits, incentives and non-cash compensation.
The mix and weighting of salary, benefits, incentives and other non-cash compensation can directly affect the company’s ability to attract, motivate and retain top employees. No comprehensive employee benefits package would be complete without employer paid time off from work.
As part of an employee benefits package, employers provide a variety of options for paid time off. Employers provide varying numbers of days that are classified in .