Category: Compensation

Features of Workers’ Compensation in Tulsa, Oklahoma

Workers’ compensation in Tulsa is very direct. Oklahoma workers’ compensation operates under the no-fault law. This means no matter who is found to be at fault for the accident, benefits for those affected will be paid through workers’ compensation. Receiving the proper health care is crucial. Doing so in a timely manner is also important. First, the sooner you receive treatment the less an employer can say about the injury not being work related. Most importantly, properly recovering from any injuries sustained will decrease the amount of time lost at work.

There is an entire list of industries which do not qualify for workers’ compensation benefits. These include: 1) drive-away owner operators; 2) real estate brokers, paid in commission; 3) agriculture workers; 4) horticultural workers; 5) maids, nannies, and other domestic workers such as gardeners/ maintenance, making under 10k annually; 6) taxi drivers; 7) business owners; 8) sole proprietors; 9) partners; 10) volunteers; 11) independent contractors; 12) anyone party to a franchise agreement; 13) anyone employed by a tax-exempt sports league; 14) stockholders; 15) federal employees, including postal workers, are covered by the Federal Employee’s Compensation Act (FECA).

If you are not employed in an above listed industry there are strict rules and timelines in order to receive benefits. Any injury, including occupational diseases must be reported within thirty days. Although it is recommended to report your injury to your employer or supervisor as soon as possible. Your employer is required by law to file out a CC-Form-2 (also known as the Employer’s First Notice of Injury Form). If immediate emergency medical treatment is necessary, you may choose a medical provider. However, if your injury is a non-emergency, the employer is allowed to pick the provider. If a medical provider has not issued your treatment within seven days of the injury, you’re entitled, under Oklahoma law, to choose your own provider. Make sure to document all facts related to your injury during your initial doctor’s visit.

Workers’ compensation benefits cover:

• Any injury or illness that occurred on the job;
• Any injury sustained while performing work duties or errands;
• Surgery;
• Traumatic injuries;
• Optometric;
• Occupational diseases;
• Podiatric;
• Payments for wages lost as a result of a work-related injury or illness;
• Replacement for lost wages through Temporary Total Disability (TTD);
• Compensation for permanent disabilities within the guidelines of the law;
• Death benefits for the families of workers who have been fatally injured as a result of a work-related injury.

Medical treatments covered include: hospital bills, prescriptions, prosthetics, doctor visits, mileage occurred receiving treatment.

After receiving your disability award, you will be issued payments. Please note, only seventy percent of your original weekly wages can legally be paid out to you in benefits. The state of Oklahoma caps the limited weekly amount able to be received is $323.00. You will receive your temporary benefits until a doctor declares you condition can’t improve through anymore treatment or time.

Permanent total benefits are paid for a job-related injury or disease that results in permanent and total disability. These benefits are paid for a period of fifteen years or until the employee reaches the age of maximum social security retirement benefits, whichever is longer. If the employee suffered death a surviving spouse, and each child, is entitled to a lump sum benefit payment. They may receive weekly benefits and funeral costs. If the spouse remarries a lump sum equal to two years compensation is paid, and then benefits stop. Rules vary for dependent children. A child can receive benefits until age 18. However, if the child is a full-time student enrolled in an accredited educational institution or is home schooling they qualify for benefits until age 23. Also, any dependent who is mentally or physically unable to be self-supporting also may be entitled to benefits after age 18.

Using the Tulsa Attorney Directory to enlist the advocacy of a skilled and experienced workman’s compensation attorney will significantly increase your odds of settling your claim in a timely manner. Attempting to navigate this process without the help of a legal professional may result in the quality of life being reduced being for you and your loved ones.

Compensation Models in Digital Marketing

The compensation models used in digital marketing are commonly used online to motivate customers to have a look on the product or brand. The compensation models that I will be outlining are cost per thousand (CPM), cost per click (CPC) and cost per action (CPA).

Starting with cost per thousand is one of the most common models for advertising online, they set a rate of a thousand views on every advert gets. The downside on this type of model is that marketers can still be charged whether if customers click on it or not, marketers are charged a constant rate per thousand views that depends on various elements.

Cost per click is a compensation model used when marketers are only charged when a consumer clicks on the advert, unlike CPM. However, it is also the most expensive model as they charge you extra if you want your search to pop up when people put in keywords, this model is mostly used for brands, if they want to sponsor on social media platforms.

Lastly, cost by action is compensation model involves making sure the customer is going to sign up or make a purchase to the product. Whereas the marketers are only when charged after payment transaction which means this is the best model used for when marketers are guaranteed a sale by a customer after every advert which is the most effective. This makes it easier for advertisers to make their price limit because it is simpler to justify the importance of the consumer.

When it comes to digital marketing strategies and how they create brand loyalty and recognition is all about engaging with the customers and involving them whereas that builds a relationship between the business and the consumer. Strategies like vlogging for example can really have a big impact on the brand as it gains brand loyalty from influencers online when promoting a product as customers has strong belief and trust in what people say about a specific brand by knowing reviews about their products and services. Another get benefit to this is that it helps builds up relationship with new potential customers in way to get to know the business and have interest in their products.

Search engine optimization is a great compensation model that advertisers use to gain brand recognition by setting their social media platforms on every sponsored page and also improve the company’s ranking on search engine websites. This attracts high quality mobile users to your brand by being the first thing they see when they open up a site. It has become one of the most significant compensation models as this is long term which means that it will be hard for consumer to forget the brands name as it is constantly on the web pages, helps stands out from your competitors and convinces consumer to come to your brand. The advantages of this model are that generates sustainable clicks and targeted audience which can also help increase brand recognition and when customers are familiar with the brand will eventually create brand loyalty. A disadvantage of it is that it is very time consuming, in order to get best results the campaign needs to process for a long time before you start to expect any sales.

Pay per click is another great compensation model as is the most used way to advertise as they located at certain areas of the page when eye naturally fall at. It is basically when advert is placed at the corner or at the side of the page for consumer to have a peak of what the brand is and what they are trying to send out as a marketing message as well letting the consumer know what products and services they provide. An advantage of pay per click is that it can generate brand recognition quickly and is good if you are looking for faster results. A disadvantage to this is that can be a loss if that the campaign if not done properly which can cause no sales and set a bad impression of the brand.

Social media promotion is one of the best and most common sources of digital marketing, promoting your brand in the right platforms can attract the right audience which can increase brand awareness. Consumers are always looking for new opportunities to engage with brands therefore this helps creates a connection between the company and consumer, whilst promoting on social media there is also video marketing where people promote product and spread brand awareness in a video and this is where social media influencers take place and normal individuals can do it as well. This strategy is highly effective as it doesn’t involve promoting the product but demonstrating it and reviewing it as the same time which makes the content more authentic and relatable giving the consumer an experience of it, it helps making it easier to solve any conflicts with the products and giving out suggestions and recommendations. A strong advantage of it is that it has the largest audience as this specific strategy is a convenient way to reach out to a large amount of people within different social media platforms such as Facebook, Instagram etc. it also has no startup costs unlike other different strategies where you start from free of charge and work your way up and it also builds brand loyalty as majority of the millennials are always on social media and have interest in brands that have campaigns online which makes it more innovative than traditional marketing. A disadvantage of this is that there will always be bad feedback on every campaign especially online which means it can leave unhappy customers to vent to others about their bad experience with the brand.

So, in this essay, I have presented the different compensation models used in digital marketing, their strengths and weaknesses.

Compensation and Benefits as a Significant Part of Human Resource Management

Compensation and benefits refer to the benefits a firm provides to its employees in exchange for their labor. Compensation and benefits are thus a key part of human resource management. Compensation and Benefits is two different concepts. Compensation is the crucial part of every job. When every person receives a job offer, the first thing they look at is the salary. Whether the recruiter lists the wage as an hourly, weekly, monthly, or hourly rate, candidates see it as the most critical part of any job offer. Compensation is not only related to regular pay check. Benefits cover indirect pay. This can be health insurance, stock options, or any myriad of things offered to employees.

Definition of Compensation and Benefits

According to Cascio (1995) the “Compensation includes direct cash payments and indirect payments in form of employees benefits and incentives to motivate employees to strive for higher levels of productivity”.

According to Milkovitch and Newman (2005) the “Compensation is all forms of financial returns, tangible services and benefits employees receive as part of an employment relationship”. The phrase “financial returns” refers to an individual’s base salary, as well as short- and long-term incentives. “Tangible services and benefits” are such things as insurance, paid vacation and sick days, pension plans, and employee discounts.

According to the Bureau of Labor Statistics depicts definition as “nonwage compensation is provided to employees” (BLS, 2008).

According to Dictionary of Cultural Literacy (2005) presents the definition as “any of various benefits, as free life or health insurance, paid holidays, a pension, etc., received by an employee in addition to regular pay”. The use of the term ‘regular compensation’.

According to the Business Dictionary (n.d.), employee benefits are a form of “indirect and non-cash compensation paid to an employee: paid leave, supplementary pay, retirement”.

According to the National Compensation Survey insurance and legally required benefits such as Social Security, Medicare, federal and state unemployment insurance taxes, and workers.

History of Compensation and Benefits

Over the course of the 20th century, American workers have witnessed an evolution in compensation. Through the century, the changes in the methods of pay have usually been stimulated by some form of imbalance caused by a crisis or demographic shift. For the 20th century American worker, no greater crisis was experienced than the Great Depression, a watershed in how employers paid their workers. But growth in unionization and the increase in the number of working women, among other shifts, have also contributed to changes in pay practices. Payment for labor services has evolved from simple piecework pay to sophisticated contractual compensation packages. At the turn of the 20th century in America, few workers would have received anything more than wages as compensation for their labor services. But by the close of the century, a typical worker received more than 25% compensation in the form of benefits. These benefits, which were termed fringe benefits for most of the century, consisted of employer-paid items such as health, life and unemployment insurance; retirement and savings plans; and holiday and vacation leave. Today, benefit components making up the compensation package continue to evolve, with variable pay plans–such as profit-sharing and stock options-growing in importance. Additionally, emerging benefits, such as family care, are becoming widely available.

Compensation and Benefit Policies

Companies provide a variety of compensation and benefits to employees for performing their jobs. These compensation and benefit strategies should be clearly defined and communicated to employees within the employee handbook or company policies and procedure manual.

Assume you are the compensation and benefits manager at Synergy Corporation. You are responsible for researching, developing, communicating, and continuously evaluating the company compensation and benefit policies. These policies should provide employees with clearly defined and equitable strategies.

They should also define company compensation and benefit opportunities. The policies should comply with legal and tax requirements for compensation and benefits. Additionally, they should communicate the value of the benefits to current employees as well as in recruiting future employees.

You decide to update Synergy Corporation’s employee handbook to highlight details on compensation and benefits available for employees. You explore direct financial monetary wages, indirect financial compensation, and benefits for use in developing effective company policies.

Principle of Compensation and Benefits

There are following seven principles of compensation formulation (Jain, 2014):

1. The organization should have an unambiguous plan to determine differential pay levels in terms of different job requirements involving varied skills, exertion, responsibility and working conditions.
2. An attempt should be made to keep the common level of wages and salaries of the organization in line with that obtained in the labor market.
3. Adequate attention should be taken to distinguish people from the jobs. Although people are paid in terms of rate embodied in specific jobs, some exceptions should be allowed in the cases of professional and executive personnel by paying them in terms of their abilities and contributions.
4. The care should be taken irrespective of individual considerations to ensure that equal pay for equal work.
5. There should be a plan to adapt an unbiased measure for identifying individual differences in capacity and contribution in the form of rate ranges with in the grade increments, wages incentive schemes and a system of job promotion.
6. There should be proper procedure for handling the wage grievances in organization.
7. Adequate care should be taken to inform the employees and the union, if any, about the procedure followed in determining wage rates. There were no confidential wages and the employees should have a clear understanding of their wage or salary structure. This will enhance employee satisfaction with wages.

Objectives of Compensation and Benefits

• Acquire qualified personnel. Compensation needs to be high enough to attract applicants. Pay levels must respond to the supply and demand of workers in the labor market since employees compare for workers. Premium wages are sometimes needed to attract applicants working for others.
• Retain current employees. Employees may quit when compensation levels are not competitive, resulting in higher turnover. Employees serve organizations in exchange for a reward. If pay levels are not competitive, some employees quit the firm. To retain these employees, pay levels must be competitive with that of other employers.
• Ensure equity. To retain and motivate employees, employee compensation must be fair. Fairness requires wage and salary administration to be directed to achieving equity. Compensation management strives for internal and external equity. Internal equity requires that pay be related to the relative worth of a job so that similar jobs get similar pay. External equity means paying workers what comparable workers are paid by other firms in the labor market.
• Reward desired behavior. Pay should reinforce desired behaviors and act as an incentive for those behaviors to occur in the future. Effective compensation plans reward performance, loyalty, experience, responsibility, and other behaviors. Good performance, experience, loyalty, new responsibilities, and other behaviors can be rewarded through an effective compensation plan.
• Control costs. A rational compensation system helps the organization obtain and retain workers’ reasonable costs. Without effective compensation management, workers could be overpaid or underpaid.
• Comply with legal regulations. A sound wage and salary system consider the legal challenges imposed by the government and ensures employers comply.
• Facilitate understanding. The compensation management system should be easily understood by human resource specialists, operating managers, and employees.
• Further administrative efficiency. Wage and salary programs should be designed to be managed efficiently, making optimal use of the HRIS, although this objective should be a secondary consideration with other objectives.
• Motivating personnel. Compensation management aims at motivating personnel for higher productivity. Monetary compensation has its own limitations in motivating people for superior performance. Besides money, people also want praise, promotion, recognition, acceptance, status, etc. for motivation.
• Consistency in compensation. Compensation management tries to achieve consistency-both internal and external in compensating employees. Internal consistency involves payment on the basis of the criticality of jobs and employees’ performance on jobs. Thus, higher compensation is attached to higher-level jobs. Similarly, higher compensation is attached to higher performers in the same job.
• To be adequate. Compensation must be sufficient so that the needs of the employee are fulfilled substantially.

Importance of Compensation and Benefits

Attracting Top Talent

People are always looking to put themselves in the best possible position financially. Those who are worth a specific salary amount often know their value and will seek a position that pays accordingly.

Increased Employee Motivation

Properly compensating employees shows you value them as workers and as human beings. When people feel valued, they feel better about coming in to work. Overall company morale increases and people are motivated to come to work and do a good job. Additionally, when employees know there are bonuses or commissions, they are increasingly motivated to deliver grander results.

Boost Employee Loyalty

When employees are being paid well and are happy, they’re likely to stay with the company. Proper compensation is one factor why employees remain with employers. Loyalty means that business owners don’t need to continue to spend time, money and energy on recruiting new candidates.

Increased Productivity and Profitability

Happy employees are productive employees. Productivity in relation to compensation starts with employees feeling valued which increases motivation and loyalty. Not only are employees more motivated to do a good job, but also, the longer people are with the company, the more they know and the more efficient they become. All of this leads to increased productivity.

Job Satisfaction So People Stay

Creating the right compensation plan leads to stronger job satisfaction. The right compensation plan includes benefits, along with all the other bonuses available. Employees often boast about holiday bonuses or they keenly watch how the company stock performs because they have stock options. The right compensation program invests employees into the work being done, which gives them a stronger sense of satisfaction when the company succeeds. They know they will be rewarded for their efforts; everyone likes to be appreciated.

Conclusion

Compensation and benefits are significant part of every organization. Compensation and benefits are important for two reasons. First, people won’t work for you without pay and second it is a significant expense with a clear goal so it’s not something businesses can overlook. This is why paying careful attention to a fair compensation and benefits structure is so important.

The Vital Role of Rewards and Compensation in Motivating Employees and Improving Organizational Performance

Rewards and compensation play a vital role in motivating employees and improving performance in organization. A cautiously designed reward and compensation system can significantly increase the performance of employees resulting in organization’s effectiveness and productivity. With the changing scene in the world of work today, a multifaceted reward and compensation system is required to meet the demands of the employees.

According to Watson (2003) a reward is usually something valuable, such as money. Rewards serve in various ways in organizations. They help to build a better employment contract, hold on to good employees and to reduce employee turnover (Watson, 2003).

Armstrong (2007) asserted that reward is concerned with employees and organization performance development through which better result can be achieved by understanding and managing reward within an agreed framework and planned goals.

According to Gkorezis and Panagiotis (2008) the principal goal of reward is to increase people’s willingness to work in one’s company to enhance their productivity. Reward systems are the mechanisms that make this happen. They can include awards and other forms of recognition, promotions, re-assignments, non-monetary bonuses like vacations or simply thank you. Employers get more of the performance they reward, not what they anticipate they will automatically get from employees (Rivai & Ella, 2010).

Sarika (2016) indicated that compensation plays an important role in organizations that want to achieve their objectives and goals. It is one of the most important and vibrant human resource practices. Compensation includes design, development, implementation, communication and evaluation of the reward strategy and processes of the organization. Compensation is the total of all forms of payments and rewards provided to employees for executing tasks to achieve organizational objectives (Sarika, 2016).

According to Azis (2020) compensation may accomplish numerous purposes assisting in recruitment, job performance and satisfaction. Compensation includes direct cash payments, indirect payments in the form of employee benefits and incentives to motivate employees to strive for higher levels of productivity. It is a critical component of employment relationship (Ibojo & Asabi, 2014).

Reward and compensation systems are extremely vital for an organization. Rewards and compensation include systems, programs and practices that influence the actions of people. The purpose of reward systems is to provide a systematic way to deliver positive consequences. The only way employees accomplish the employers dream is to share in their dream. Compensation is important for employees as individuals because the volume of compensation reflects the size of their work among the employees themselves, family and community.

According to Liebowitz (2010) rewards and compensation programs can be modified to give bonuses based in part on the employee’s appraisal ratings on the behavioral and technical competencies and in addition, employees could be awarded bonuses for their outstanding work on special projects.

Colquitt, Lepine and Wesson (2011) indicated that performance is the organization’s ability to maintain its objectives by using resources effectively and efficiently. Performance is a measure of tangible behavior in the workplace that is multi-dimensional in nature, where quality of work, the quantity of work, working time and cooperation with co-workers are performance indicators (Colquitt et al, 2011).

In a very keen competition situation today, every organization is required to be able to boost all its resources to win the competition, one of which is improving the quality of human resources. Improving the quality of human resources is one of the organizations main determinations in preparing a reliable and committed employees. Improving the quality of human resources has an imperative role in increasing organizational performance to compete and sustain in global competition.

Employees are the key resources for any organization and in the circumstance of managing people, the reward and compensation system underlines a center feature of the employment association. The success or failure of the organization mostly depends on their employees. To be successful or to get a well performed tasks or achieving the desired goals of the company, employees should be motivated, attracted and retained in the organization.

The Importance of Fair and Equitable Compensation

Compensation is an indispensable and widespread thing of the management procedure of each organization. Most corporations choose to fulfill their mission, gain their objectives and maximize return on their investment, especially on their human capital. Doing so requires that their compensation philosophy, design, transport and decisions be balanced, fair, focused, and understood by using their worker and plausible worker constituencies.

Compensation is an indispensable and widespread thing of the management procedure of each organization. Most corporations choose to fulfill their mission, gain their objectives and maximize return on their investment, especially on their human capital. Doing so requires that their compensation philosophy, design, transport and decisions be balanced, fair, focused, and understood by using their worker and plausible worker constituencies.

An effective compensation system is about much more than base pay. It comprises a vast range of elements, from the managing of raises and bonuses to presenting benefits and presenting non-monetary blessings such as getting to know opportunities and job security.

In fact, focusing on a well-designed, complete compensation package is often a good deal extra nice in enhancing business overall performance than definitely increasing employees’ base pay besides regard for the broader picture.

Compensation takes the forms of wages and benefits. The pay shape consists of wages which are an economic price for services performed on an hourly groundwork for exact nice of labor (blue-collar worker) both a worker or organization (working for anyone else). Wage rate is typically the principal financial difficulty mentioned between the employee and the conceivable business enterprise when negotiating employment or an employment contract. Salary is frequently interchanged with the phrase ‘wage’, however revenue is typically ruled by an employment contract for a constant period of time such as a week, month, or per 12 months that requires the employee to possess exceptional education or abilities related to that unique job position (usually referred to as a white-collar worker).

Employee benefits are presented from many companies to attract, retrain, improve morale and promote employee productivity. Benefits are normally provided in addition to typical wages in a broad range from enterprise to employer in the form of, however are now not limited to, paid holidays, vacations, fitness insurance, dental plans, in poor health leave, pensions, that are no longer primarily based on the employee’s performance.

Many agencies feel that worker compensation is the dominate thing in employee satisfaction. Therefore, groups attempt to buy employee pleasure with extended pay and benefits. Abraham Maslow is recognized for organizing the idea of a hierarchy of needs, writing, that human beings are inspired by way of unsatisfied needs, and that positive lower needs want to be blissful before higher desires can be satisfied. Compensation and advantages fulfill the two most simple desires of Maslow’s Hierarchy -physiological and safety. Emotional wants fulfill the three upper wants of Maslow’s Hierarchy – love, esteem, and self-actualization.

Those agencies who supply equal wages and benefits obtain higher recruitment and retention qualities, multiplied worker morale and performance; reduced absenteeism and labor turnover thru bettering employees’ association between the business enterprise and themselves have a fine effect on the organization productivity, however, there are different approaches to create increased employee satisfaction. At the Reliance Industries, they have a range of employee incentives to encourage worker loyalty and proceed their employment with the corporation for several years. They offer advantages such as attention lunches, perfect attendance awards, employee discounts, retirement plans, etc.

People do greater of what they experience and less of what they don’t enjoy! People who revel in working are more productive! Reward and consciousness structures are motivational tools used by using organizations to encourage dedication from personnel who feel suitable about doing excellent work. The importance of profitable and recognizing employees for their contributions to the organization can’t be understated. Employees who feel definitely liked by using their employers are loyal and dedicated to accomplishing organizational goals. Effective reward and awareness structures cultivate worker satisfaction and loyalty, which in the end affects overall performance measures such as customer satisfaction, efficiency, effectiveness, and economic results. Unfortunately, no longer all reward and recognition programs are effective. There is a risk of negative consequences when ineffective incentives are adopted resulting from negative planning or erroneous theories.

Management is required to pay what is dictated from external pressures such as the government that requires employers to abide via nation and Federal laws. Some of these laws consist of the Minimum wages act 1948, which sets the minimum wage amount for personnel specifying the quantity of hours that an employee can work earlier than requiring the company to pay overtime. Even if a agency is now not unionized the union carries a brilliant impact on wages and salaries thru lobbying and striking for greater paying wages for union individuals and non-union members. Other elements involving equal wages is from community and industry wage patterns.

If the corporation expects to appoint and hold the very pleasant employees, they should provide a competitive wage that is supplied for the equal occupation that is enormously the equal earning. The effect of remuneration over distribution of income, consumption, saving, employment and costs is also significant. Thus, the wage policy of the agency should not become an evil to the economy.

From the above rationalization we can see that compensation and rewards play a very vital position in the organization. These have to be designed in such a way that it not only satisfies the personnel but preserve them influenced to acquire the organizational objectives.

It is necessary that each corporation devise the honest compensation system which has the following advantages:

• The honest compensation gadget will encourage the employees in the direction of larger efficiency and productivity.
• It will motivate a common employee to acquire above average pursuits if the compensation structures promote an integrated view of rewards-not only traditional, quantifiable elements, however additionally greater intangible, non-money factors such as career opportunities, mastering and development, work challenge, and supportive culture.
• A gadget which is simple and flexible and can adapt to the changing wishes of the organization. This will help each and each worker to compute his own compensation receivables, instead of wasting time due to the complex nature.
• Uniformity is crucial for a compensation gadget so that it is without problems understood by all degrees of the enterprise and additionally will help to be steady with different programs.
• Implementation be incredibly effortless so that the employees don’t suffer for the motives which are not in control.
• It will raise the morale of the employees simply due to the fact it is honest and does not supply room for discrimination due to caste, race etc.
• This will motivate for scientific job evaluation and inspire transparency in the system.
• Due to the machine, it will be less complicated to comply with the variety of labor acts.
• The gadget will help in efficiently resolving the conflicts between the management and the labor if any.

Conclusion

The first thing employers have to consider when creating compensation packages is fairness. It is absolutely essential that agencies maintain inside and external equity. Internal equity refers to equity between personnel in the equal enterprise whilst external equity refers to relative wage fairness compared to wages with different farms or businesses. No depend the compensation level, if either inside or exterior fairness is violated, a commercial enterprise will most possibly trip employee dissatisfaction and personnel with start to stability their overall performance thru a variety of ways ranging from decreased productiveness to absenteeism and subsequently to leaving the business.

Compensation Essay

Concept of Compensation

Compensation is one way of managing to improve job performance, motivate and improve employee performance. Compensation is important for employees as individuals because the amount of compensation between the employees themselves, their families, and society reflects the size of their work. Compensation is also often referred to as an incentive and can be defined as any form of reward given to employees as a reward for their contribution to the organization.

Employee compensation according to Dessler (2006) has two (two) main components:

1. direct payments; (salaries, wages, promotions, commissions, and, bonuses),
2. indirect payments; (financial benefits such as workers ‘ insurance and vacation).

According to Ivancevich (2007), the object of compensation is to create an acceptable system of incentives for workers and employers, the desired result is an employee who is committed to his job and driven to do a good job for the worker. The compensation given ought to reflect a job’s value. Compensation or compensation for the benefit of the company and its staff in general.

Compensation according to Rivai (2009), where the outline of the compensation program can be divided into two (two) major groups, namely:

1. form-based, divided into; (a) financial compensation; (b) non-financial (non-financial compensation) compensation;
2. form-based, divided into; (a) direct compensation, i.e. (b) indirect compensation.

Based on the literature review and frame of thought, hence the concept of compensation can be formulated as follows:

1. Compensation has a significant effect on work motivation.
2. Compensation has a significant effect on job satisfaction.
3. Work Motivation has a significant effect on job satisfaction.
4. Compensation has a significant effect on employee performance.
5. Work Motivation has a significant effect on employee performance.
6. Job Satisfaction has a significant effect on employee performance.

· The Importance of Compensation on Employee Performance

Thierry (1987) stated that some 3 perceived features, which are transparency, fairness, and, controllability, depend on compensation systems to be effective. These perceptions have a connection that is discussed in more detail below.

a) Transparency

Depending on how transparent a compensation system is viewed, how it is communicated, and how complex it is. Not only does a transparent system inform employees who do not want to risk the rules of the compensation system, but it also brings them up to date with the organization’s objectives. If effectively communicated to these staff, the rules will facilitate their understanding of the works of the system and create an environment to support the compensation system implementation. Uncertainty (Perceived) decreases incentive compensation effectiveness (Gibbons, 1998).

In short, how employees perceive a transparent compensation system will have a positive and propelling effect on their level of performance motivation. The risk of hard work and not getting compensated in return is projected to make employees want to put more effort into it and thus increase performance.

b) Fairness

According to Prendergast (1999), while the economic trust theory is not well developed, it is expected that the principal’s reliability and trustworthiness will greatly influence the employee’s actions. Other theories, such as the theory of reciprocity, also focused on the concept of fairness but used various angles. It mentions that the employee’s compensation should be a fair amount in relation to the employer.

According to this theory, any surpluses created in the agency contract must be fairly divided in order to increase incentives. If the employee perceives that this concept of fairness has not been delivered anyway, there is a likelihood that their performance motivation will be reduced, thus reducing performance.

c) Controllability

The third feature we use to evaluate the effectiveness of the compensation system is the perceived relationship between effort and compensation (variable).

Baker (2002) defines the extent to which the employee is capable of controlling or influencing the result.

The Impact of Compensation on Employee Performance

A compensation package does not necessarily mean a monetary reward. Flexible benefits, medical care, work-life balance, and employee benefits are also included. Employees of today not only work for the money but also put equal emphasis on other compensation aspects.

Now we are going to focus on those factors that have a direct impact on employee’s performance because of compensation, which we have found by going through some research papers & journals.

1. Retention

One of the most effective ways in which compensation can have a positive impact on employee retention is to build an employee development plan that promises the company to track career opportunities for employees. Being on an upward career path should be accompanied by an increase in salary and merit. Moreover, performance-based bonuses motivate employees to align their individual goals with corporate goals. Implementing incentives such as stock options, profit sharing, and, spot rewards are other ways in which retention is affected by compensation. These forms of compensation show how critical the performance of employees is to the overall profitability of the organization. Spot rewards are usually not as lucrative; however, they provide immediate recognition, reward, and, compensation when an employee performing superior work is observed by company leadership. Appreciation is key to the retention of employees and if compensation is part of the recognition, it is likely that compensation will increase the retention of employees.

2. Fairness

Fairness in compensation is when employees feel that their pay reflects the quality of their work accurately. The perception of a fair compensation package is likely to depend on a number of factors including the skills and responsibilities required for the job, the time and effort put in, and how the pay and benefits compare with what others are receiving for similar work.

Importantly, fair compensation does not necessarily mean equal pay for employees, but it requires that any differences in compensation reflect real differences in the skills, responsibilities, and/or effort of employees at work.

3. Pay Equity

Pay equity is thought to be a very powerful motivator (or de-motivator, depending on the situation) — the feeling that one’s pay is on par with those around them. Research shows that people will be less motivated to take on a new job if they think higher pay packages for similar positions have been offered to other people. Similarly, research presented in the WorldatWork Journal Found that 25 percent of employees say fair pay is an organization’s most important thing they want.

Employers must then pay employees at the right level, and they must show employees that pay is fairly allocated within the organization.

4. Motivation

Compensation is the primary motivating factor for employees to push for higher heights on an ongoing basis. It provides them with a reason to work hard and continue to drive towards the next milestone.

On the other hand, in the absence of a good compensation package, employee performance and efficiency can be drastically affected.

5. Job Satisfaction

According to the report from the Society for Human Resource Management, compensation is the top contributor to job satisfaction. In fact, 96% of the employees surveyed say that compensation is important or very important to their overall job happiness.

Employers should engage their workforce on a regular basis with surveys and feedback sessions in order to determine where everyone is satisfied. Low employee happiness rates can result in lower productivity, absenteeism, and attrition. If wages can not be raised, employers need to look for other ways to compensate employees for their work. These efforts can be enhanced by non-monetary rewards such as group outings and flexible hours.

6. Productivity

In some organizations, the effect of compensation on the productivity of employees could be very strong. It is stated that good employee compensation can stimulate the emergence of fresh ideas and the innovation of employees. It would be very useful for the company with so many ideas from employees.

A similar study has found that the existence of good employee compensation will also improve employee health. The employee will gain maximum performance opportunities with health maintenance. Maximum work performance can be achieved by the number of working hours or employee present hours. As a result, the planning process can be obtained with good production. They also noted that low employee compensation will trigger the employee to try to get their own business or side work. It will disrupt the quality of the work and concentration of employees with the side business. Low concentrations of some employees have a negative impact on the company’s goods manufacturing quality and quality. It is clear from these facts that the influence of compensation on the productivity of employees is very strong. If it provides employees with more reasonable compensation, the higher the employees ‘ productivity.

By contrast, if the employee receives lower compensation, the lower the employee’s productivity.

7. Turnover

People would like to be well compensated. They must cover standard expenses such as housing, food, and utilities. And most people also want sufficient money for extras. If you don’t pay your staff well, they’re going to find a business that’s going to.

It is good to do wage market research when determining compensation for your employees. Find out what your competitors are paying for their staff. Based on similar jobs in your local area, research a competitive salary range.

And you can’t just give and do paychecks to employees. Employees also want good advantages. You have to offer the competitive advantages your employees want. Learn about the benefits common to employees. Then find out what benefits your area offers to competitors and other businesses.

8. Alignment Problem

The alignment of performance management and compensation systems is based on accurate job descriptions, clear communication of expectations with employees, a fair and competitive base compensation plan, and the philosophy of performance-related compensation of your institution. Always keep in your line of sight the intent and purpose of your systems, and it will help you stay the course and effectively manage performance and compensation.

9. Agency Problem

If the organization follows the mechanism to minimize agency problems like,

• performance bonus
• cash bonus
• granting the stock option
• insurance policy etc

Then there will be fewer agency problems, employees will be satisfied and performance will increase.

10. Organizational Citizenship Behavior

In order to ensure OCB, pay structures preferred to be established on the basis of individual contributions, it is also necessary to introduce the salary required to match that of external associated organizations as well as allowances related to competence. Employees who are happy with rewards are passionate about working and are more committed to the organization.

Conclusion

After going through different research papers & journals on how compensation affects employee performance, we have found these factors.

An effective performance management system that is absent in many organizations goes a long way to ensuring equity n in the distribution of compensation packages and in the actual evaluation of the entire compensation system in order to be up-to-date with the situation on the job floor and thus achieve the desired result.

Google Compensation Structure Essay

Introduction:

Google, a leading multinational technology company, is renowned for its innovative products, services, and work culture. One crucial aspect of its success lies in its compensation structure, which aims to attract and retain top talent in the fiercely competitive tech industry. This critical essay examines the Google compensation structure, its strengths, weaknesses, and its impact on employees and organizational outcomes.

Body:

Competitive Base Salary:

Google offers a competitive base salary to its employees, providing a solid foundation for compensation. This approach ensures that employees are fairly rewarded for their skills and experience. A competitive base salary helps attract highly qualified professionals and motivates them to perform at their best. However, it is important to note that base salary alone may not be sufficient to fully incentivize exceptional performance or retain top talent in the long term.

Performance-Based Bonuses and Incentives:

Google’s compensation structure includes performance-based bonuses and incentives, which aim to reward outstanding individual and team achievements. These bonuses provide an additional motivation for employees to excel in their roles and contribute to the company’s success. However, critics argue that the emphasis on individual performance may create a competitive environment that hampers collaboration and teamwork. It is crucial for Google to strike a balance between individual recognition and fostering a cooperative culture.

Stock Options and Equity:

One distinctive feature of the Google compensation structure is its inclusion of stock options and equity grants. These allow employees to share in the company’s success and benefit from its financial growth. Stock options provide a sense of ownership and alignment with the company’s long-term goals. However, the distribution of stock options may not be equitable across all levels of the organization, potentially creating disparities in compensation and fostering a hierarchical culture.

Perks and Benefits:

Google is well-known for its extensive array of perks and benefits, including generous health insurance, flexible work arrangements, on-site amenities, and wellness programs. These perks contribute to employee satisfaction, work-life balance, and overall well-being. However, some critics argue that the emphasis on perks may distract from addressing deeper issues related to workloads, stress, and burnout. Organizations must ensure that these benefits are not merely superficial but genuinely support employee welfare.

Gender and Diversity Pay Gap:

A critical concern surrounding the Google compensation structure is the issue of gender and diversity pay gaps. Several reports and lawsuits have alleged disparities in pay between male and female employees and underrepresentation of minority groups in higher-paid positions. While Google has taken steps to address these issues, it is imperative to continually monitor and rectify any biases that may exist within the compensation structure.

Conclusion:

The Google compensation structure is a complex system designed to attract, motivate, and retain high-caliber talent. It incorporates competitive base salaries, performance-based bonuses, stock options, and a range of attractive perks and benefits. While it offers numerous advantages, it is not without its criticisms and challenges.

To ensure its continued effectiveness, Google must address concerns regarding the potential impact on teamwork, the equitable distribution of stock options, and the elimination of pay gaps based on gender and diversity. A critical evaluation of the compensation structure should prompt ongoing discussions, reviews, and revisions to align it with evolving organizational and societal values.

Ultimately, a comprehensive compensation structure should be designed to support employee satisfaction, engagement, and fair treatment while fostering a culture of collaboration, diversity, and inclusion. As Google continues to shape the future of the tech industry, it must strive for a compensation structure that not only rewards and motivates its employees but also reflects its commitment to social responsibility and ethical business practices.

You are the human resources (HR) manager for a technology company that provides

You are the human resources (HR) manager for a technology company that provides technical support for hospitals using computer systems that share information. Your company has just been awarded a new contract that is requiring a huge increase in the organization’s workforce. The contract will involve providing technical support for several large hospital systems in the Midwest. As a result, you have been asked to outline the process that you will use to develop an internally consistent compensation system and present it to the owners of the company for approval.
Create a minimum four-page essay in which you address the following issues:
Describe the reasons why an internally consistent compensation system is necessary.
Assess the impact of the Civil Rights Act of 1964, the Bennett Amendment, and Executive Order 11246 on compensation practices.
Outline the process involved in creating an internally consistent compensation system.
In the introduction to your essay, create a fictional name and location for your company.
Make sure that your essay includes enough information to convince the owners that the time, effort, and manpower that this process will take will be worth it to the company in the long run. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed. This formal paper example provided by the CSU Writing Center shows this type of formatting.