Compensation plan in an organization
Making decisions concerning various jobs for any employee can weigh heavily on their minds. This is usually brought about by the various critical issues that will drive people to accept certain jobs and decline others. It is believed that a person may follow a certain motivational procedure like Abraham Maslow’s hierarchy of needs and so forth. Some of the issues that influence job seekers to accept and decline other jobs include compensation, flexibility, social responsibility, and so forth (Page, n.d.). Compensation largely influences a person’s decision on a job. This is because a person will look at things like what the wage/salary of the job is, benefits, and the retirement plan that is offered by the employer (Page, n.d.). If these issues are not convincing to an employee, they will easily decline the job because the employer doesn’t have the best of interest for them at heart.
With an effective compensation plan in an organization, there are a lot of benefits that can be ripped. For instance, employees will be more productive because they feel valued by the organization (Leonard, 2019). Therefore, to appreciate what the organization is doing for them, they have to put even more effort into achieving the goals set by the company. Secondly, a good compensation plan will attract top talent from the market (Leonard, 2019). This is because individuals are always looking for the best places that will put them in a good position financially. It also increases the motivation and loyalty of employees. Employees that are given good compensations are motivated and thus provide grander results and will always be loyal to the company no matter what (Leonard, 2019). Thus, the retention of high level of employees is increased and reduces wastage of resources.
Even though a company may wish to put an effective and fair compensation plan for its employees, various factors are operating outside the company that influences this. One of them is the level of education and the years of experience an employee has (Tarpey, 2018). More experience and high level of education will automatically force an employer to increase the compensation. The location in which a given company is (Tarpey, 2018). This will influence the cost of living because in cities, employees will be offered more compensation than when a company is located in a remort location. Another factor that plays a major role is the demand and supply of labor (Tarpey, 2018). In locations that the demand for a certain skill set is much higher than the supply, employees will be offered higher compensations as an attraction to a given job.
To ensure that the workplace runs smoothly and embraces every individual, there are various policies and Acts that were enacted such as the Civil Rights Acts of 1964, the Bennett Amendment, and Executive Order 11246. For instance, the Civil Rights Acts of 1964 indicate that no one should be discriminated against regarding their race, religion, color, national origin, or gender (U.S. Department of Labor, 2019). The Bennett Amendment indicates that individuals should not be discriminated against based on their sex when being paid by their employers (Miller, 1981). The Executive Order 11246 indicates that while hiring, people should be discriminated in any way by their employers (What Is Executive Order 11246? 2018). The policies above were implemented so that they can put a stop to any form of discrimination when it came to hiring, paying, or being present in the public. The policies were to level the ground for everybody and offer equal opportunities to everyone regardless of their uniqueness.