Employees use a number of criteria to evaluate the fairness of a pay structure which includes judging fairness by comparing the pay structures to other employees. It is paramount to note that when employees acknowledge equity in their pay as compared to other employees, their behavior and attitudes remain unchanged. The employees also communicate fairness especially when they compare their pay with other employers. Modern technology has ensured that employees can get payment details online of other employers (Noe, 2014).
The pay structure where am currently working is averagely high as compared to our competitors. The employer uses a uniformed pay grading or classification to pay the employees. Thus, if you belong to a certain pay grade then all the employees earn a similar amount. In addition, the employer pays bonuses if you perform exemplary well and this gives all of us motivation. I believe the pay structure is fair and since we are paid more than our competitors, then I do believe we have the best pay structure.
Employers use 5 types of individual performance pay which include sales commissions, individual bonuses, merit pay, piecework rates and standard hour plans. Piecework rates are a wage which is paid based on the production amount and is recommended for production workers. Sales commissions are calculated as a percentage of sales made and are recommended for sales persons. Merit pay is a system which links pay increases to rating on performance appraisals. It is recommended for permanent employees. Individual bonuses are usually performance based and are suitable for permanent staff whereas standard hour plans are paid on an hourly basis and are recommended for casual jobs in a company.
The legal requirements from the employer’s standpoint in regards to employee discipline should ensure that the justice system used by the employer is transparent and lenient. In regard to employee discipline, the employer should ensure that there is interactional justice that incorporates empathy and respectful treatment. Additionally, there should be procedural justice that involves consistent procedures and ethical standards as well as an outcome which is above board and fair. This involves outcomes that are proportion to behaviors (Skelton, Anderson & Bizmanualz, Inc. 2008).
There is normally a set regulation on the amount of pay that should be paid and this regulation is done by product and labor markets. However, various employees also use other factors which to evaluate the fairness of their pay structure which include the employees’ competitive environment, use of work design and technology in the employees workplace. A number of methods are used by employees to gather and evaluate the pay structure in the market. Such methods include benchmarking and pay surveys.
As the HR Supervisor in-charge of developing the company’s objectives that will be listed in the new benefits package, there are a number of factors that I will consider when selecting the employee benefits. These factors include the organization’s objectives which ideally assist the organization in choosing the most effective benefits and eventually monitor if these benefits are achieving the intended purpose. Other factors include the employees’ expectations and values as well as the costs of the benefits to the employer (Rao, 2007).
The benefits that are included in Social Security include retirement payments in old age which are dependent on the recipient if they would want to receive their pays before retirement or after retirement. Spouses of covered earners receive these benefits whereby they receive either the benefit linked with their own earnings or one-half of the amounts that is received by the covered earner, thus, whichever is greater. The employees and the employers share the Social Security cost through a payroll tax.
I have had various benefits in my job which include transport and house allowance. They were additional benefits other than those that are required by law and I highly consider them of value since they cater for my transport and housing expenses. I also get to save a lot from these two allowances since I ensure to spend below what I am paid. They are easy to access and understand since they are added in the monthly pay.
Noe, R. A. (2014). Fundamentals of human resource management. New York, NY: McGraw-Hill Irwin.
Rao, V. S. P. (2007). Human resources management: Text and cases. New Delhi: Excel Books.
Skelton, J. N., Anderson, C. J., & Bizmanualz, Inc. (2008). Human resource procedures for employee management: The professional's ready-to-use guide to create HR policies and promote a productive workforce. St. Louis, MO: Bizmanualz, Inc.