What Practices Pay off Best and Under What Conditions - Assignment Example

What Practices Pay off Best and Under What Conditions? In every business undertaking, the parties have to engage in practices that will leave most, if not all, parties satisfied to a reasonable level. This is also the case when it comes to employee-employer relationship. The employers have to engage in activities that will maximize their profits whereas the employees want job opportunities that will pay well so as they may meet the expenses for the day. It is unfortunate that employees, who according to the view of the community, are supposed to have good living standards, are not able to meet their personal needs.

When the employers are deciding on the form of pay to be adapted they should ensure that the form of pay is not only to their benefit but also benefits the employees. A constant salary pay method is always very beneficial to the employers especially when the work to be carried out does not require technical expertise. The employers may be able to hire employees at a very cheap cost and train them on the specifics of the job. With a base pay the employees are assured of an income and the employers are able to wisely plan and manage their finances (Compensation Framework, 2008).

The employers are able to push for higher production by the employees therefore increasing their profitability. The pay system is very beneficial to the employer as an increase in the output of the employees is a replica of the company’s output and subsequent profitability levels. Conflicts on the pay are removed as the hard work of the employee determines his/her pay. This implies that that the employer does not pay for work not done. This works towards increasing the employer’s profitability.

However in fixing the rates the employers should consider the professional skills as well as the academic level of the employees. Reference Compensationframework.org (2008), Forms of Pay viewed on 10th August 2010 from http://www.compensationframework.org/index.php/guide/forms_of_pay/. What Practices Pay Best The base pay method is mostly applicable in situations where the type of the job is repetitive in nature. That is, the employees are involved in the same type of activity from the time they were employed till they retire or are retrenched.

Also the business must have matured thus the management is well aware that the business has minimal growth in the activity they are engaging in. With this form of pay, the employees are able to budget for their income and are able to plan in advance how to spend their money. The employees are assured of a constant income and have no illusion about their earning by the end of the month. When the employees are not satisfied with the amount they are earning, they can place a claim with management so as the salary scales can be reviewed.

When the employers are not sure of constant work for the employees, the base wage pay system is the best to adopt. In this method the employees are paid on the basis of work done thus the more the task performed by the employee the higher the earnings (epi 2010). This form of pay is highly beneficial when the employers want the workers to increase their output. This form of pay may be part of the performance management system to motivate the employees increase their output. This will encourage skilled employees to join the company.

In determining what type of pay is best for a company, the employers should always consider the type of the business, the business environments and the effect the form of pay will have on the working morale of the employees. Reference Epi.org (2000), The impact of the minimum wage viewed on 10th August 2010 from http://www.epi.org/publications/entry/briefingpapers_min_wage_bp/