...Compensation culture and tort reform ‘Compensation culture’bhas been described as ‘an amorphous term’ by Morris.b It is generally used to connote a society in which there is a propensity for anyone who has suffered a personal injury to seek punitive damages through litigation from someone connected to the injury, whether or not anyone was actually at fault, thus implying unreasonable willingness to seek legal redress when things go wrong. Commentators such as Morris, Robins and Williams have debated the existence of a compensation culture yet, in 2005, the House of Commons Constitutional Affairs Committee created a new session to investigate whether this compensation culture truly exists.bThe third report of this session is particularly illustrative, unequivocally stating that such a culture does not existband its existence is not a possibility in the near future.bThis report followed a publication by the Better Regulation Task Force (BRTF), which concluded that there is not a compensation culture, but that action was required to counter the popular perception that there is. Evidence from the Compensation Recovery Unit (CRU) supports this view as shown below. The CRU holds the most comprehensive and reliable data on the number of current personal injury claims as ‘all compensators must provide prompt notification to CRU of any claim for personal injury made against them.’...
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...Total Compensation Methods Paper Total Compensation Methods Paper In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio. Compensation Methods “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following: • Commission • Overtime • Bonus • Expense Allowances ...
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...employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast at least three compensation strategies and determine recommendations for how they may be implemented within your organization. Name: Henry Rivera I.D. #: 000318961 Reference Title Finding #1 Godfrey, W. (2013, January). Compensation Strategy for Success. Prezi. Retrieved from http://prezi.com/j9k9_m_2qiwn/compensation-strategies-for-success/ Sager, Suzanne. (2011, September). Merit Pay Most Often Used in Compensation in Public and Academic Librarians. Library Worklife. Retrieved from http://ala-apa.org/newsletter/2011/09/01/merit-pay-most-often-used-in-compensation-for-public-and-academic-librarians/ Ojimba, E. (2004, November 15). Salary Basics – Developing a Strong Compensation Strategy. Salary.com for Business. Retrieved from http://www.salary.com/Small-Business-Advice/advice.asp?part=par410 Finding #2 McGladrey. (2011). Lessons from Recession Increasing Focus on Incentive Compensation Programs. Retrieved from http://mcgladrey.com/Perspective/Lessons-from-recession-increasing-focus-on-incentive-compensation-programs University of Wisconsin – Green Bay. (2013, April 9). Compensation Philosophy. Retrieved from http://www.uwgb.edu/hr/documents/CompPhilosophy0401.pdf Finding #3 Gerhart, B., Milkovich, G.T., & Newman, J.M. (n.d.). Compensation Strategy. Answer, McGraw Hill. Retrieved from http://mhanswers-auth...
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...CPDC The CPDC (Cost per Double Click) designates the amount paid to the affiliate for a click on a link or on an advertiser's graphic element, followed by another click on the advertiser's site. CPM CPM stands for cost per thousand impressions (M is the Roman numeral for a thousand). This means the advertiser pays for every thousand times the advert loads on the publisher’s page. This is how a campaign is normally priced when brand awareness or exposure is the primary goal. The advertiser and the publisher negotiate a fixed amount that the advertiser will pay for every 1,000 times an ad is shown. CPM is a very simple payment scheme, assuming the two parties can agree on a method for counting impressions. There are often stipulations in the agreement, such that the ad can only be shown on certain pages of the publisher’s site, or can only be shown on pages with a limited number of other ads. In a CPM relationship, the publisher is primarily concerned with maintaining a high-quality audience that has well defined interests or characteristics. The advertiser is primarily concerned with creating a message that will be noticed by their target audience, because they pay for the impression whether or not the user actually sees the ad. In general, the more knowledge a publisher has about a particular audience, the higher the CPM that can be charged, because the advertiser is able to more clearly know who their message is being delivered to. One prominent...
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...Bailey DeVry University Professor: Patricia Meunier-Muenks HRM-430-67386 Compensation & Benefits Compensation Challenges for Wisconsin Electric April 16, 2016 Executive Summary The point of this paper is to look at the compensation challenges inside of Wisconsin Electric (WE Energies) and make a pay methodology that will benefit the organization, as well as the representative. With the steady change in today's business world, to have an upper hand makes it troublesome for managers to pull in and hold the most skilled representatives. Recognizing the organization's compensation procedure guarantees the organization offers the right pay and pay increases in compensation to keep top employees. When we hear the word compensation we consider paying a worker for their work performed, however, there is substantially more to compensation. Compensation and benefits, "incorporates not just compensation, but also the direct and indirect rewards and advantages the representative is furnished with consequently for their commitment to the organization. To decide compensation, companies should build up a pay and compensation program that diagrams a fair process for repaying workers" ("Compensation and Benefits," n.d.). This approach is a critical piece in helping HR to deal with staying aggressive and successful in the worldwide business sector. All through this paper we will talk about the compensation and benefits methodology of WE Energies and recommendations on the most proficient...
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...The Impact of Compensation Practices February 20, 2011 “The ultimate goal of a pay system is to align the goals and interests of employees with the goals and interests of the organization” – Robert L. Heneman The Impact of Compensation Practices The business arena is ever changing. Where people work, how they work, the relationships in the workplace and compensation for their work continues to change. Hence, “It will be the challenge of compensation professionals to devise ways to reward and motivate employees who work under increasingly flexible arrangements” (Bennett, 1995). Most people interchange and have the perspective that pay and compensation are the same when in reality, compensation is more than just monetary rewards. Compensation is often misunderstood, and can also be misapplied. More often than not, it is out of synch with the values and processes of an organization. This is because despite continued organizational changes, the actual strategies for administering and implementing compensation is misaligned with the rapid changes in the company. “Pay can no longer be seen as a mere expense and cost of doing business, but instead must be viewed as an investment that is closely linked to the long-term success of the organization” (Flannery, et. al., 1996). As Cable and Judge (1994) note, “compensation systems are capable of attracting (or repelling) the right kinds of people because they communicate so much about an organization’s philosophy,...
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...COMPENSATION AND OTHER EMPLOYEE RETENTION STATEGIES Abstract There are three human elements that are important to any organizations success - good leadership at the top, effective management at all levels, and personnel who possess the knowledge and skills to get the job done. Retaining effective employees is a challenge, and replacing employees who leave an organization is extremely expensive. Roger E. Herman’s book Keeping Good People – Strategies for Solving the Dilemma of the Decade discusses five strategies that an organization can implement, and which will aid in retaining top talent. This paper discusses those five strategies. Compensation strategies are those which ensure top talent can be recruited, and retained due to competitive compensation from an organization. Environmental strategies involve efforts that address 1) ethics and values, 2) organizational policies that interpret values and translate them into action, and 3) the physical environment that a company’s employees occupy. Relationship strategies are the actions of how an organization treats its people, as well as how they treat each other. Support strategies are those that equip employees with the resources that they require to complete the job. People growing strategies are actions that organizations can practice that contribute to the professional and personal development of their employees. For most organizations to be successful there are three human elements which are crucial...
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...“equal pay” which means that workers who perform the same duties with the same job title get the exact same wages. Comparable worth is a recognized strategy for determining job compensation. If an organization is going to put a specific value on a function, it should also put the same value on other functions that are of equal importance. Comparable worth remains an undeveloped concept. Many court cases have been heard in reference to comparable worth but the suits were unsuccessful as the procedure is not clear. (The Law and Compensation and Benefits, 2009) If a company values a position, they should show the employees that they are valued and appreciated through salary and wages. I am certain that most employees would agree. As the HR department’s director, James Bledsoe, should consider the issue of comparable worth for reasons that involve legal and ethical consequences as well as the organizational structure. The pay system that a company uses reflects that company’s culture. The culture determines the policies and guidelines that are in place, the company’s expectations, and the way that employees carry out the company’s mission. Employees are more likely to coordinate their behavior with company goals without the need for vast procedures and mounds of red tape when the company has a strong culture. If employees have values that are very different from the company’s, they will not be working toward common goals and this will lead to mutual dissatisfaction and ultimately...
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...Executive Compensation: The Ethical and Impact Challenge Executive Compensation: The Ethical and Impact Challenge Executive compensation is defined as the reward given to corporate executive employees for their job performance. Corporate executive employees are the higher echelon company employees and may include the chief financial officers, chief executive officer, upper level managers and the company president. Executive compensation mostly consists of base salary, bonuses, long-term incentives benefits, and prerequisites whose main purpose is to motivate the executives to steer the company to profitability and make decisions with the best interest of the organization. Executive compensation has been on an upward rise especially within the last few decades reaching to unprecedented levels. Worse still, executive employees’ salaries and benefits have increased at a significantly higher rate as compared to other employee’s compensation consequently raising controversy not only of the ethical issues but on issues of equity and efficacy of the high compensation in motivating the executive’s performance. The paper thus posits that the increased executive salaries are not only unethical but are not a reflection of executive performance nor are they correlated to executives performance and as such other options of motivating...
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...5-1-1995 Employee Compensation: Theory, Practice, and Evidence Barry A. Gerhart Cornell University Harvey B. Minkoff TRW Corporation Ray N. Olsen TRW Corporation Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact jdd10@cornell.edu. Employee Compensation: Theory, Practice, and Evidence Abstract [Excerpt] As organizations continue to face mounting competitive pressures, they seek to do more with less and do it with better quality. As goals for sales volume, profits, innovation, and quality are raised, employment growth is often tightly controlled and in many cases, substantial cuts in employment have been made. To accomplish more with fewer employees calls for effective management of human resources. Typically, the employee compensation system, the focus of this chapter, plays a major role in efforts to manage human resources better. Keywords employee, compensation, organization, profit, human, resource, manage, pay, market Disciplines Human Resources Management Comments Suggested Citation Gerhart, B., Minkoff, H. B. & Olsen, R. N. (1995). Employee compensation: Theory, practice,...
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...Advanced Human Resource Studies (CAHRS) 5-1-1995 Employee Compensation: Theory, Practice, and Evidence Barry A. Gerhart Cornell University Harvey B. Minkoff TRW Corporation Ray N. Olsen TRW Corporation Follow this and additional works at: http://digitalcommons.ilr.cornell.edu/cahrswp Part of the Human Resources Management Commons DigitalCommons@ILR is celebrating its 10th anniversary! Please share your DigitalCommons@ILR story! This Article is brought to you for free and open access by the Center for Advanced Human Resource Studies (CAHRS) at DigitalCommons@ILR. It has been accepted for inclusion in CAHRS Working Paper Series by an authorized administrator of DigitalCommons@ILR. For more information, please contact hlmdigital@cornell.edu. Employee Compensation: Theory, Practice, and Evidence Abstract [Excerpt] As organizations continue to face mounting competitive pressures, they seek to do more with less and do it with better quality. As goals for sales volume, profits, innovation, and quality are raised, employment growth is often tightly controlled and in many cases, substantial cuts in employment have been made. To accomplish more with fewer employees calls for effective management of human resources. Typically, the employee compensation system, the focus of this chapter, plays a major role in efforts to manage human resources better. Keywords employee, compensation, organization, profit, human, resource, manage, pay, market Disciplines ...
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...The Debate over CEO Compensation Analyzing Managerial Decisions: The Debate over CEO Compensation 1. Do you think the fact that most American CEOs are paid so much more than rank-and-file employees suggests CEOs are overpaid? Explain. I do not believe that just because American CEOs are paid much more than rank-and-file employees suggest that they are overpaid. Many CEOs whose salaries and compensation packages are discussed in the news are the CEOs from the largest American corporations and likely do not represent the average American CEO. Also, many times when CEO payouts are discussed in the news it is not a one year payout but instead a multi-year payout. Plus, many companies need to pay high salaries and incentives to attract successful CEOs from other companies. This alone drives the overall salary and compensation packages for CEOs but does not necessary point to them being overpaid. 2. Japanese CEOs generally receive much lower levels of compensation than CEOs in the United States. Does this imply that U.S. CEOs are overpaid? I do not believe that just because Japanese CEOs receive much lower salaries than United States CEOs implies that they are overpaid. I worked for Honda and one item that I learned in the past years is that there are large differences between the American and Japanese cultures. The Japanese very much frown upon employees that leave their companies. Japanese employees barely ever transfer companies unlike American...
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...Compensation – The sum total of all forms of payments or rewards provided to employees for performing tasks to achieve organizational objectives Rs Compensation- Nature and scope • The complex process includes decisions regarding variable pay and benefits • It suggests an exchange relationship between the employee and the organization • It involves design, development, implementation, communication and the evaluation of reward strategy and process of the organization Compensation Objectives 1. 2. 3. 4. To reward employees’ past performance fairly, in line with efforts, skills and competencies To attract and retain competitive high performing employees To motivate the high performing employees and reinforce desirable employee behaviour To remain competitive in the labor market 5. 6. 7. To align employees’ future performance with organizational goals To communicate the employees their worth to the organization To provide employee social status • Strategic compensation – Using the compensation plan to support the company’s strategic aims. – Focuses employees’ attention on the values of winning, execution, and speed, and on being better, faster, and more competitive.. • IBM Strategic Compensation Planning • Strategic Compensation Planning – Links the compensation of employees to the mission, objectives, philosophies, and culture of the organization. – Serves to identify the net monetary payments made to employees with specific functions of...
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...Case Study: Getting and Using Compensation Information Week Four Case Study Assignment Case Study: Getting and Using Compensation Information Which jobs are paid more or less? Is this what you would have expected? Why of why not? What factors could explain the differences in the salaries? I selected the job title of an Engineer and depending on the career level and the amount of experience, education and added responsibilities of the position the job offered a higher salary. The entry-level job positions in engineering works under close supervision and reports directly to a supervisor or manager position. As the career levels increase the Engineers start relying more and more on their own judgment to plan and accomplish their goals. With increased years of experience in the field, the Engineers start performing a variety of more complicated tasks and are mentoring and coaching others that are less experienced. Some of the other job positions that I performed searches on were found to be relatively less in terms of compensation than the Engineering positions, some of the contributing factors were that these jobs were classified in more of a support role than professional and required far less education. According to the website, salaries of jobs depend on the complexity of the job, skills required, and the education and experience required to perform the job tasks. The single most important factor influencing an employee’s rate of pay is the kind of...
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...Compensation is viewed differently from different groups of people. The definition of it will change depending on the perspective of a manager, employee, and stockholders. Compensation management is an employer’s behavior that creates internally and externally competitive practices to pay employees (Milkovich, Newman, & Gerhart, 2014). Marriott International Inc. is a well-known hospitality company with about 3,800 properties that serves customers around the world. The company has been on the 100 Best Companies to Work For list every year since its creation in 1998. According to CNN money website in 2013 it was ranked number 64. The company is headquartered in Bethesda Maryland. Their 2013 Annual Report has not been published yet, but based on the 2012 Annual Report, their revenue was over $12 billion (www.money.cnn.com, 2013). According to 2012 Annual Report their goal is to offer their associates fair treatment and opportunities for personal and professional growth. Keeping employees happy will ensure their reputation for excellent customer service and satisfaction therefore, the company is constantly seeking creative ways to reach its goals. The organization’s vision is to be the number one hospitability company in the world. Their core values include: putting people first, dedication for customer satisfaction, how to do business and serve the world (www.investor.com, 2014) For global organizations like Marriott, compensation can be challenging. In this paper...
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