Question

Wk 2 - Compensation Evaluation Assignment Content Resource: Compensation Evaluation Grading Guide You were hired to work as a HR consultant for a small local hospital, with the task of expanding the workforce of certified medical assistants. Looking at the current three employees, you find a discrepancy in compensation between Susi, a 2-year employee at $28,000; Tom, 5-year employee at $27,000; and Raul, a 10-year employee at $33,000. All are employed as certified medical assistants, yet they all earn different salaries. According to survey data, all three employees are below the market rate for this job in the local job market. All three employees are also exemplary employees with near perfect scores in their most recent performance evaluation. Write a 700- to 1,050-word paper that includes the following: Explain the discrepancy in pay among the current employees. Describe the strategy you would take to correct the internal equity issue. Describe the strategy you would take to correct the external equity issue. Explain how you will ensure new hires will be paid equitably, both internally and externally. Explain how an organization's Total Compensation strategy affects its financial operations and its ability to attract, motivate, and retain top talent. Cite all sources according to APA formatting guidelines.

Answer 1

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Compensation Evaluation

Discrepancy in Salaries

Employees in every organization always look after what they getting after giving their best services and skills in their work. In doing so, they expect their employer to fully adhere to their agreement in paying them the amount as stated in the contracts. In every organization, there are employees of different calibers who are paid in regard to their positions, experience and skills that they have. This creates a scenario where employees doing the same job but earning differently.

The discrepancies which bring to difference in earning of salaries include; education and experience where people who have a wide range of experience and a high education status, tend to earn more than those whose education status is low and have little experience to give in. skills is also another factor which brings about the discrepancies where those who have the desired skills tend to be at an added advantage as employers will want them to be part of the team which then makes them to be paid more than the other employees. Discrimination is also another factor and this happens where the employer looks down upon certain ethnic groups and not pay them according to their value.

Correcting Internal Equity Issue

Strategies should be made that will help to address the issues of pay discrepancies in the same job in the company. It can be done through reviewing of the employees’ experience records where they are placed in a salary scale that matches their experience. This will help avoid situations where those with more experience are paid less than those with little experience.

Managers should also ensure that they are not biased in paying of salaries to their employees by paying all of them according to their work and not background or any other affiliation that is not work related. Therefore, discrimination should be done away with to help correct the internal pay issue. Managers should also ensure that those who were not able to negotiate well for their salaries are given allowances and other compensation perks that will help to match their salaries with those of other employees thus creating job satisfaction.

Correcting External Equity Issue

This occurs when people in the same field of work earn different amount in different organizations. This usually happens when employers want to minimize their labor costs so as to maximize on their profits. in order to ensure the external equity issue is corrected and well addressed, there should be labor laws through the employment acts that will help to bring up policies where the employers will have to follow a standardized wage rate .

There should also be creation of trade unions where all employees are required to join so that the unions will help in negotiating for uniform salaries in each job for their members. This will ensure that other employers will not try to steal the rightful pay of salary from the employees. Another strategy is to ensure that through the market forces, the interplay of supply and demand of jobs is the same so that the employers will not be able to employ salary discrimination in paying their employees.

Equitable Pay for New Hires

Once an employer wants to add in more staff, they will usually go for the most experienced and those that have the desired skills to perform. This being a good way of bringing in talent in the organization, the employers are also looking on how they can minimize on the labor cost so that they do not pay much. In this regard to this the employee tends to suffer.

Therefore, in order to ensure the employee does not suffer, the employee should ensure that they have join trained unions so that through them they can negotiate for better pay. The new hires should also ensure that their employers are operating under the labor laws and adhering to the employment acts so that they do not get discriminated upon.

Total Compensation Strategy

An organization that is able to employ a fully implemented compensation strategy is able to have numerous positive effects in its undertakings. This is because, the organization first believes in fairness in that employees earn according to their status. This creates a good impression and paints a good public image to the society. the financial operations of the company will be enhanced because the employees are well motivated to work hard therefore giving their best skills to ensure the company gets good returns. The revenues earned will surpass the total production costs.

Due to paying well, the organization will also be able to attract highly qualified people because they know they will get rewarded accordingly. The current employees will also work efficiently to produce good results so that they can be retained and the management will ensure that the top talented and well skilled employees are well compensated so that they cannot be switched to move to their competitors.

Conclusion

It is therefore important for all organizations to evaluate their compensation criteria so that they can regulate on the basis of paying their staff. This will help to reduce cases of employees boycotting to work due to unequal pay within the same job. Strategies should be made that will help the employee to know why they receive their current pay and to be done on merit. Employers should completely avoid discrimination so that the employees can properly work in producing the best results.

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