Compensation Models Issues - Assignment Example

It means that the worker’s salary is fixed and not likely to change unless through a specified channel depending on the organization.

Advantages

Disadvantage

Contractors

Employee

Contractors

Employee

Salaried Model

·       Contractors and suppliers have a fixed income regardless of the equipment supplied (Blomqvist & Busby, 2012)

• Workers have a specified working schedule
• Nurses earn a lot when deployed to unpopulated areas such as Sunshine Cost (Blomqvist & Busby, 2012)

• Suppliers can make huge losses when supplying expensive equipment (Blomqvist & Busby, 2012)
• Contractors might compromise the quality to make profits
• It is less motivating

• Doctors do not work after the regular eight working hours a say
• Inhibit the employment of subordinate staff
• The surgeon will earn a lot from a few operations

Blended Model

• Contractors provide the best services because quality determines their income
• Has good value for money (Blomqvist & Busby, 2012)

• Surgeons earn per surgery conducted therefore maximizing their income
• Nurses earn a lot when deployed to unpopulated areas

• The income of the contractor is unstable as their chances of earning are little when the workload is small
• The salaried contractors are given priority

• Demotivates workers in fewer populated areas
• It requires a lot of working hours, causing fatigue (Blomqvist & Busby, 2012)

Grounded on the outlined advantages, different models suit dissimilar regions based on population. Businesses adopt either of the models focusing on employee expertise and experience. In most cases, experienced employees favor the blended model because it allows flexibility and working for different organizations (Blomqvist & Busby, 2012). In so doing, they maximize their income. Companies adopt a similar rationale to get the best out of their expertise. Specifically, this occurs when the enterprise does not require such services frequently.