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Billy’s Bar-B-Q

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Billy’s Bar-B-Q
MGMT335-01
Unit 4 Assignment

Abstract
Billy’s Bar-B-Q wants to open a new Texas style restaurant in the North. This paper will identify the different systems of compensation as well as the benefits and disadvantages of each. It will define comparable worth and how companies can compensate their employees based on this and not break any federal legislation.

Billy’s Bar-B-Q What are the different types of compensation systems? What are the benefits and disadvantages of each type of compensation? Companies have to compensate their employees for the work that they do. What is Comparable Worth? How do companies attempt to compensate their employees based on the Comparable Worth concept without violating the federal legislation? Companies have many laws they have to follow and by basing the compensation on comparable worth, the companies are letting the employees know they matter to the company. Compensation is “something given as an equivalent for services (Compensation, 2012).” Compensation is given in different types such as base pay, commissions, overtime pay, bonuses, travel, stock options, and benefits (HR Guide, 2012). The benefits of base pay are that the employee is sure to always have a pay check and paying bills will not be an issue. The disadvantage of base pay is making sure it is equivalent to the amount of work the worker is doing. The benefit of commission is that the pay for a commission job is almost always more than just base pay. The disadvantage is that a pay check is not always guaranteed if you do not sale product (Rumbauskas, 2010). The benefits of overtime pay are having a more flexible workforce and an increase in earnings for employees. The disadvantages of overtime pay are that the cost is more for the company, fatigue, and inefficiency from the employees (Manage Overtime, 2012). The benefits of bonuses make it worthwhile for the employee to stay employed at the company longer and allows for healthy competition. The disadvantage of bonuses is that employees can feel underappreciated or unfairly treated. The benefits of stock options make it worthwhile for the employee to stay employed at the company longer and allows for healthy competition. The disadvantages of stock options is that employees can feel underappreciated or unfairly treated (Kaput, 2012). The benefits of benefits are that they help with recruitment and retention of employees and staff that are healthier. The disadvantages of benefits are that there is a significant cost for the business and plans that are going to change (Belcher, 2012). Comparable Worth, or pay equity, is the idea that people who perform work of comparable skills and responsibility, whether man or woman, should receive equal pay (Comparable Worth, 2012). Different jobs require a different set of skills which can make one job pay more than another job. The positions that are sex-segregated are to be reanalyzed for worth to a company to raise wages for traditionally female-dominated jobs, such as office secretaries, to the level of those male-dominated jobs, such as construction workers (Comparable Worth, 2012). This type of policy has to evaluate all jobs and give them points according to the level of knowledge and responsibility it takes to do the job and then make salary adjustments whenever it is seen that one gender is being paid less than the other for similar points (Pay Equity, 2012). Companies would have to have an outside consultant to rate the job positions with points of the levels of knowledge and responsibilities of each job held within the company then make pay changes if equal points receive different pay in order to compensate employees on a Comparable Worth concept and not violate and federal legislation. The outside consult must be an expert in rating job qualities and because he comes from the outside, he is not biased to one job in the company over another. Rating the jobs requires knowledge of the jobs and the information of the employees holding the jobs. A female clerk typist would have the same points as a male delivery van driver and therefore should be paid the same wages. A job that is held mostly by males maybe seen as more hazardous but a job of equal skill that is held by a woman can be seen as more stressful. There are many different types of compensation systems. With each system, as with anything, there are benefits and disadvantages for each system. Employees expect to be compensated for their work by their employers. Comparable Worth is equal pay for men and women for equal work. Companies want to compensation the employees who are of different sexes equally for equal work but their do not want to violate any federal legislation because it can cause them to get sued or close because they broke the law. The laws are put in place to protect companies and by following them they can keep their company in business. Any company not following laws should be fined and any company continually breaking the laws should be shut down.

References
Belcher, L.M. (n.d.). Advantages Disadvantages of Benefit Plans for Employees. Retrieved 12 September 2012 from Chron: http://smallbusiness.chron.com/advantages-disadvantages-benefit-plans-employees-36667.html.
Comparable Worth. Retrieved 12 September 2012 from The Free Dictionary: http://legal-dictionary.thefreedictionary.com/Comparable+Worth.
Compensation. Retrieved 12 September 2012 from Dictionary: http://dictionary.reference.com/browse/compensation?s=t.
HR Guide to the Internet: Compensation: Outline and Definitions. Retrieved 12 September 2012 from HR-Guide: http://www.hr-guide.com/data/G400.htm.
Kaput, M.B. (n.d.). Advantages & Disadvantages of Employee Incentives. Retrieved 12 September 2012 from Chron: http://smallbusiness.chron.com/advantages-disadvantages-employee-incentives-21220.html.
Manage Overtime. Retrieved 12 September 2012 from Business Link: http://www.businesslink.gov.uk/bdotg/action/detail?itemId=1074415479&type=RESOURCES.
Pay Equity And Comparable Worth. Retrieved 12 September 2012 from Minnesota Management & Budget: http://www.mmb.state.mn.us/comp-pay-equity.
Rumbauskas, F. (17 November 2010). Salary or Salary + Commission. Retrieved 12 September 2012 from Eyes On Sales: http://www.eyesonsales.com/content/article /salary_or_salary_commission/.

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