Analysis of Compensation

Analysis of Compensation

Jarod Christensen

HRM 531

April 06, 2016

Tony Vienna

University of Phoenix

      The Purpose of this paper is to explain the difference of Compensation, and to identify which type of compensation the writer of this paper would prefer. To do this the writer of this paper would have to have a job to analyze.  With that being said this paper will define the types of compensations Organizations are currently using and which type of compensation I would like to have in the future. This paper will also explain and rationalize my current goals to see if they consistent with the employer's organizational goals/ why or why not?

According to C Cascio F Wyane, (2016). Managing human Resources: Productivity, Quality of Work Life Profits (2016). There are four types of Compensations types and each is very different the types are Direct Financial Indirect Financial and Non-Financial Compensations  

           Direct Financial Compensation

The first type of Compensation is Direct financial compensation, an organization main goal is equity and when all parties think they are all being paid fairly. Employee morale and productivity increases when Employees are doing the same job you think they are getting compensated the same, performance plays a major role in a company if the company pays by the task completed or amount of work done each day. The person with the most work done get paid the most this could work for a team environment as well. A good incentive would be team-based pay the management could do an extra check or include a bonus to get production up because the more money an organization make the employee should be included. Saving the company money is the number one goal for any company worldwide. In the past People where compensated for going to school and learning the job skills and what the person could bring to the company if hired, this is not the case anymore. Know the right people and networking is the way it is done except for specific fields.    

             Indirect financial Compensation

The Seconded type of compensation is Indirect Financial these are usually things like health Benefits and are generally not paid to the employee but are used as a way to entice a person from coming to work at the organization. The Mandated/legally required benefits include Social Security retirement benefits, disability insurance and survivor’s benefits, Medicare, worker’s compensation benefits, and unpaid leave that are mandated by the Family and Medical Leave Act Vianna, (2015). Organizations provide numerous benefits to make working situations better normal compensations like Paid vacations, Sick pay, Health benefits and Dental and vision packages A new employee is granted these benefits after a sixty7or nighty day grace period depending on the employer. New benefits now being offered