Question

Imagine that you manage human resources for a small business. You have recently prepared a report on the market rate of pay for salespeople, and the company’s owner says the market rate is too high. The company cannot afford this level of pay, and furthermore, paying that much would cause sales people to earn more than most of the company’s managers. Suggest three possible measures the company might take to help resolve this conflict.

Answer 1

This may be considered as a major conflict for the employers as most of the qualified potential employees think their probable salaries apart from the additional intangible elements are not adequate. A number of advantages or benefits can be facilitated by an organization to the salespeople in order to resolve the issue of compensation and at the same time not having an extra burden on the organisation. The three different types of measures which could be taken by the organization are enlisted as below:-

A. Medical/Dental/Vision benefits - Cost of Healthcare in the USA is one of the substantial at present. Apart from this, as there is a huge number of those individuals who lost their jobs, the healthcare facilities provided to them is also no longer existing. In most of the cases, the employees who are working without having the medical benefits, their salary also include out-of-pocket costs for medical facilities. By offering the medical, dental and vision-related health care benefits, the talented and qualified employees can be attracted toward the organization by using a subsidized approach.

B. Vacation and Sick time benefits - This can be treated as one of the easy and most cost-saving methods which can be used by the employers to attract and sustain the new employee and in this, the options available to the organization are quite he and vary substantially. A number of benefits can be provided by the employer such as paid vacations, unpaid week vacation, paid sick leaves or unpaid sick leaves. In order to measure this, we can use the calendar as the most important tool as in it the employee has to make sure that all the demands are fulfilled while others can go for the break.

C. Educational Assistance - There is a huge number of individuals who do not have adequate education level in order to compete in the labour market once they are laid off from their current job. A business can gain a competitive advantage by offering its employee an education assistance program for higher studies. Apart from this, many large organization can offer the stock option on completing the graduation as an incentive for the manpower.