Question

You have two medical assistants (MAs) who earn $15 per hour at your medical practice. When you hire a new MA, you discover that the current market pays $16 per hour for medical assistants. Respond to the following discussion points in relation to equity conflicts and compensation:

• State what you would offer the new MA and provide your reasons.

• Discuss the implications of your decisions on internal and external equity.

• Evaluate the changes, if any, you would make in the compensation of your current MAs.

• Recommend strategies for resolving similar equity conflicts with compensation.

Answer 1

Medical Assistants $15 per hour

New MA Current market $ 16 per hour

Equity conflicts, and, compensation

• Internal equity - fairness within an organization
• Valuing jobs, compensating employees
• Job evaluation standards - Physical demands, experience, managerial responsibilities, safety
• Performance evaluation standards - conflict resolution, quality, meeting quotas
• Meet employees individually, survey employees on jobs, and, compensation
• Analyze organization's budget, and, job posting data - determine if the compensation is fair
• Work on a variable pay scale, to let employees be compensated better

Compensation $16 per hour; this is the current compensation per hour

Internal equity

• Those working at $15 per hour can be compensated further through performance appraisal. This is for internal equity
• There is external equity as the market pays $16 per hour
• Changes can be made to increase the pay given the experience, and, performance while working

Strategy

• Underpayment equity, overpayment equity

External equity - Workers in one organization receive compensation similar to a person working at the same position in the same organization

Ratio comparisons, perception, the situation of an employee

• Perception - Equity; Situation of an Employee - Anger;

Ratio comparisons

Individual's outcome / Individual's input < other's outcome / other's input

• Perception - Equity, Situation of an Employee - Satisfied

Ratio comparisons

Individual's outcome / individual's input = other's outcome / other's input

• Perception - Inequity, Situation of an Employee - Pride, over-confidence, guilt

Ratio comparisons

Individual's outcome / Individual's input > Other's outcome / other's input