Compensation and Benefits in Human Resources Management - Coursework Example

Comments (0) Cite this document
The paper "Compensation and Benefits in Human Resources Management" discusses that legally mandated benefits involve guaranteed pay; these are a monetary reward provided by an employer based on the relationship between employee and employer. Guaranteed pay is best presented in basic salary…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.1% of users find it useful
Compensation and Benefits in Human Resources Management
Read TextPreview

Extract of sample "Compensation and Benefits in Human Resources Management"

Compensation and benefits is a sub-division of human resources management, dealing with employee remuneration and benefits through policy-making initiatives. Incentives that stimulate better work may be provided periodically, depending on an organization’s culture and objectives.
Monetary and Non-Monetary Types of Employee Compensation
Formal Pay Structure
Monetary incentives may come through salary increases or be given separately
Non-monetary Compensation
Non-monetary compensation implies involve benefits given to workers in regard to the services they render to the company (Noe, Hollenbeck, Gerhart, & Wright, 2011). They encompass Leave Policy, Car policy, Health Policy, Indemnity, Overtime Policy, Leave travel Assistance Limits, Pension Schemes, and Holiday Homes.
Legally Mandated and Voluntary Benefits
Variable pay is an example of voluntary benefits paid by an organization to a worker that is based on management discretion, effectiveness or results realized. Usually, voluntary benefits are best represented in bonus forms and sales incentives.
Benefits Communication
Benefit communication should involve offering employees the right information on the incentives they stand to gain and allowing them adequate time to make hard decisions if any. The practise also involves helping them go about permanent conditions, which is usually easier to manage than awaiting the eleventh hour. Employees should be educated on behaviors like maintaining good health and refraining from drug use (Tacchino, & Littell, 2011).
Compensation policies are often riddled with different problems. These include the challenge of hiring the right employee to a given position. Unfavorable Political, Economic, Social, Technological, Legal and Environmental conditions hinder the implementation of better compensation policies (Szendrei, & Rodriguez, 2010).
Effectiveness Analysis
Pros. Formal pay structure is advantageous because an employee can make permanent plans based on it. Non-monetary compensation enables the employee to save monetary resources and feels part of the organization.
Cons. Monetary compensation can be easily wasted by the employee. Non-monetary compensation may sound a long-drawn burden to an employee, especially those who have access to better non-monetary compensation offered by an organization.
Potential Costs of Employee Benefits
Benefits Cost
Benefits costs impact an organization’s assets, depending on the amount and the period within it should be settled.
Environmental Factors that can Influence the Compensation and Benefits of an Organization
Environmental Factors Identification
A clearly undertaken PEST analysis looks into environmental factors that impact the implementation of employee compensation benefits. These include stringent policies, and the uncertain economic situation facing the organization. Fewer organizational strengths and opportunities, and heightened weaknesses and threats could limit employee compensation: conversely, the reverse picture would impact better remuneration policies.
Environmental Factors Analysis
Stiff competition from market rivals, unfavorable labor laws, and the high rate of joblessness could impact the compensation of employees.
Benchmarking Activities Related to Developing Competitive Compensation Structures
Benchmarking and Desired Outcomes
Benchmarking strategies such as pegging employee compensation and benefits on the organizational gains is probably the best, as it ensures the company stays safe in case the gains dwindle.
Current Issues Faced by Organizations Related to Employee Compensation and Benefits Packages
Current Issues and Impact
Rapid expansion plans, or upgrade the systems often requires a lot of resources and could eat into the employee compensation and benefits. The developments could lead to the reduction or stagnation of the employee perks
Employee compensation and benefits policies should be implemented to enhance organization’s competitiveness. Owing to the impacts of environmental factors on such programs, they should, nonetheless, be pegged on organizational goals and gains. Read More
Cite this document
  • APA
  • MLA
(Compensation and Benefits in Human Resources Management Coursework, n.d.)
Compensation and Benefits in Human Resources Management Coursework. Retrieved from
(Compensation and Benefits in Human Resources Management Coursework)
Compensation and Benefits in Human Resources Management Coursework.
“Compensation and Benefits in Human Resources Management Coursework”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Compensation and Benefits in Human Resources Management

Human Resources- Compensation and Benefits

...of the HR particularly the Compensation and Benefits Manager Human resources management (HRM) plays a pivotal role in the operations of an organisation. Basically, HRM is defined as a “system of philosophies, policies, and practices that affect the people who work in the organization. It includes activities related to staffing, training and development, performance review and evaluation as well as compensation,” (Jackson et al, 2001, p. 242). In this particular case, the Compensation and Benefits Manager’s main role are concerned with reviewing and evaluating performance...
12 Pages(3000 words)Essay

Human Resources-Benefits

...?Human resources-benefits Marcus , in his article, argues that the concept of pay-for-performance has revolutionized the health care industry and has brought radical changes to the quality of health care in the United States. The Affordable Care Act of 2010 has paved the way for the new program, the Hospital Inpatient Value-Based Purchasing Program (HIVBP), which has been instrumental in paying hospitals based on the quality of health care rather than the quantity. It has been observed that the existing incentive systems for doctors and hospitals do not contribute towards a subsequent improvement in the quality of health care. As such, the article advocates that effective implementation...
3 Pages(750 words)Essay

Compensation and benefits management

...? Compensation & Benefits Management Affiliation: Human Resource Management (HRM) gainedits significance in the professional arena like never before. Organizations require to attract, sustain and encourage brains to accomplish goals. Nowadays humans are considered as one of the most important assets required to carry out the tasks effectively and efficiently. Among many techniques which companies utilize to attract the potential minds, keep and encourage its people is Compensation and Benefits Management (Zingheim and Schuster et al., 2009). Compensation...
5 Pages(1250 words)Essay

Compensation Benefits

..., and education. Methods of Compensation Employees must consider they have the ability and resources to meet the performance principles. For rewards to be inspiring, employees have to believe they can earn them. If Lansing-Smith was to put into practice one of the choices of inducement pay below the corporation could benefit from the pleased workers and increased output. Incentive pay is a form of pay associated to an employee's performance. APPENDIX A LANSING-SMITH CORPORATION EMPLOYEE BENEFITS SURVEY Statement Strongly Agree Agree Neutral Disagree Strongly Disagree Health Benefits I am satisfied with my...
4 Pages(1000 words)Essay

Human Resource Management - Compensation, Benefits, Incentives

... below the candidates expectations. IN RESPONSE TO THE POSTING BY MARIA Re: Unit 4 Compensation (DB) by Maria.Ford on 12/4/2005 2:15:18 PM: Of course, each person will try to get a salary that is higher. However, even young candidates will consider benefits and incentives. For instance, a person may be offered an hourly rate that is lower than he/she wishes. However, with free or discounted lunches, longer breaks, a kind manager, flexible hours, accessibility to work (distance), whom he/she will be working with (age group, environment), what he/she will be doing (perhaps working in an area or subject that he/she enjoys), etc. even the younger person will focus on these things and will realize that the benefits/incentives add... ...
2 Pages(500 words)Essay

Compensation (Human Resources)

..., retirement programs, paid leave or housing. Benefits and rewards receive by the employee from the employer is the non-monetary compensation. According to Tatum (2010), in order for employees to be more productive and motivated, business should provide more detailed incentive – the total compensation package. The package should be well designed to attract, retain, and motivate competent workers in the organization. Total Compensation Package: Components To decide on what component to be included in the compensation package is far more complicated than just deciding on the payment of employees. The expectations of the employees on what would their...
2 Pages(500 words)Essay

Compensation (Human Resources) congregate objectives. These plans recompense performance with the time period of 2 to 5 years. Perquisites. This remuneration normally comprises with use of a car, employee retirement plans, and various contracts. 2).What are the key Differences Compared to the Strategies of Microsoft and SAS? Compensation and benefits are: • A very high sales incentive with base salary • Bonus provided regularly, which are depended on company profit • A high sales potential • Freedom in working from any location and the flexibility in the working hours 3) Summarize the key Similarities and Differences The key similarity among the Apple Inc and the Microsoft is in the efficient potential by both the company sales....
2 Pages(500 words)Essay

Compensation & Benefits

...implementation of compensation plans. There are different types of compensations and benefits that are provided by the companies to their employees. Implementation of the compensation and benefits programs not only puts a positive impact on the employees but also makes the companies achieve higher levels of profitability and productivity. References Calvin, R. (2001). Sales Management. New York: The McGraw-Hill Companies, Inc. Churchill, M. (n.d.). Incentive Programs. Retrieved from Garcia, J. (2010). What is 401K?. Retrieved from...
15 Pages(3750 words)Essay


...Compensation benefits Employees’ retention and motivation are some of the roles of human resource management in organizations and compensation and benefits are important factors. Compensation and benefits also determine production costs and hence marginal returns. Involved potential benefits and cost therefore influence decisions on the human resource management aspects and this paper discusses legal compliance, equity, and transparency as the most important professional and ethical issues in compensation and benefits. Legal factors are important aspects of an organization’s external environment and dictate decisions on compensation. Legal implications of non-compliance with legal requirements make them a very important issue... to an...
1 Pages(250 words)Coursework

Compensation and Benefits in PAC Resources Inc

...Compensation and Benefits of the of the Question Broadbanding can be regarded as a mechanism through which large number of compensation systems is reduced to design a much simpler system. This technique was incorporated in PAC Resources Inc., through which 14 grade levels of salary was reduced to five salary grade levels. In context of PAC, this program should not be terminated as it was framed in order to control the overall labor costs. A major part of such costs is contributed by compensation and benefits offered to employees. Though employees might consider it to be loss of promotional levels or manipulation of the...
2 Pages(500 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Coursework on topic Compensation and Benefits in Human Resources Management for FREE!

Contact Us