A paper on American literature Compensation Management Compensation is a human resource strategy aimed at sourcing out maximum returns from the available workforce. To do so, employees are rewarded for their contributions towards an organization. Compensation management entails issuing monetary and non-monetary rewards to employees.
These include various forms of income, fringe benefits, and other forms of deferred compensation. In detailing some of the complexity of researching economic well-being through compensation, the paper calls for the young researcher to go beyond the analysis of annual income.
Combining the various forms of compensation with factors such as race and gender that correlate to disparities in pay and access to high- paying jobs, the author constructs a list of variables that should be considered when approaching the issues of wage, compensation, and economic well-being. Traditionally, income — payments an individual receives from a job or transfer program during a calendar year — is the primary tool utilized.
This is because the relevant information routinely gathered by the US Census is readily available for researchers. Some have argued that this approach is too narrow and does not take into consideration the ability of an individual or household to withstand economic hardships such as loss of a job, prolonged illness, or death of a family member.
To this end, some sociologists also take into account wealth. Wealth, the value of everything an individual owns less what the individual owes, allows individuals and households to withstand periods of economic hardship until they can reestablish a level of income or adjust their standard of living to current income levels.
The level of wealth needed to withstand a prolonged period of hardship is outside of the reach of most Americans. For most people, the ability to build wealth is greatly determined by wages and compensation. Unfortunately, most Americans do not earn enough to create significant wealth outside of the equity in their homes.
What an individual can afford and how much an individual can save from their income often have a great deal to do with other forms of compensation. Health insurance, short- term disability, and long-term disability are forms of compensation that can help an employee withstand the economic hardship of prolonged illness.
Without these forms of compensation usually not measured in income or wealthan individual can quickly lose savings, home, and other assets. Analyzing wages and compensation to understand how most individuals build wealth and secure economic well-being isn't as straightforward as measuring income.
Elements of compensation such as medical benefits, memberships, stipends, meals and lodging, stock options, and deferred compensation are often not reported as income.
These fringe benefits can significantly improve an individual's wealth and economic well-being. Finally, when considering wage and compensation, it is important to look at the roles race and gender play in individual earnings and economic well-being.
This paper outlines various forms of wages and compensation that must be taken into consideration when attempting to understand issues around economic well-being. Applications Salaries The primary difference between a salary and a wage in the United States economy is that salary is paid for a period of time without regard to the number of hours worked and a wage is calculated based on an hourly rate or in a piecemeal manner.
The Fair Labor Standards Act exempts salaried employees from minimum wages and overtime guidelines. To be classified as an exempt employee, that employee must be an executive, professional, outside sales person, commissioned sales person, computer professional, driver, loader, mechanic, farmer on a small farm, or a seasonal worker working at a seasonal or recreational business opened less than seven months a year.
Because of the number of executives, professionals, and sales people among salaried employees, the difference in income between salaried and wage employees is substantial.
Additionally, salaried employees are more likely to receive other forms of compensation. One of the primary concerns of the Department of Labor is to make sure that low-compensated employees are not treated like exempt employees by companies.
A non-exempt employee is protected by regulations that require a minimum wage be paid and that overtime is paid.
Overtime Overtime is for many employees a two-edged sword. On one hand, overtime wages are a valuable source of additional income, and many employees come to depend on the extra pay in paychecks.
On the other hand, overtime can be abused by employers. Research shows that too much overtime can lead to stress, poor health, obesity Lallukka et al. The guidelines for overtime were laid out in the Fair Labor Standards Act of In the United States, each state has the option to set its minimum wage at or above the federally required minimum wage.
Research shows that immigrant workers tend to avoid states with low minimum wages, and native workers who do not complete high school tend to suffer more adverse employment effects in these states Zavodny, Other issues concerning overtime include employers' attempts to work wage employees more than forty hours per week without paying the overtime premium.
Stock Options Stock options and restricted cash are two other forms of compensation usually associated with executive compensation. Though some companies do offer employee stock option ESO plans, stock options are more closely associated with executives.
Restricted stock is almost exclusively offered to executives.References Employee Compensation and Benefits Management: A Study on Singer Bangladesh Ltd. 4 Acknowledgement First and foremost, we would like to thank to our course instructor of the Human Recourse Management, Abdul Kader Nazmul, Assistant Professor, AIUB, for the valuable guidance and advice.
That compensation management system has a great impact on employee’s efficiency and performance at the Nigeria ports authority (NPA).
3. There is a relationship between compensation management policy and employee’s performance and that compensation management will lead to positive impact on employee’s performance. Term Paper Compensation Management Term Paper Human Resource Management Submitted By Amrit Ratna Shakya MBA Term III Submitted To Sunil Ojha Course Instructor Submitted for the degree of Master of Business Administration Kathmandu 13 April Table of Contents 1.
CHAPTER I 1 INTRODUCTION 1 Compensation . - Introduction The purpose of this research paper is to review the challenges and trends in compensation in the public sector from an interdisciplinary view of local, state, and federal agencies human resources.
Public sector human resource management continues to experience many challenges in the ever-changing workforce. Employee Compensation: Research and Practice Barry A. Gerhart Cornell University George T. Milkovich Research and practice (CAHRS Working Paper #).
Ithaca, NY: Cornell University, School of Industrial and Labor Relations, Center for Advanced available toothersinterested inhuman resource management inpreliminary formto . Jul 01, · Apprenticeship Training, Attendance, Business Expenses, Compensation Administration, Consumer Price Index, Contingent .