Assignment:
How do you reply to the following discussion post? Minimum of 150 words w/reference.
Determining what "fair" compensation is for employees can often be a very difficult task. Employers must consider what position the employee will fill, what responsibilities they will have, what skills or qualifications they must have, and so forth. These questions must all be considered, and then the company must decide on a value and compare it to that of the current marketplace. Both internal and external pay comparisons will give the employer an idea of what kind of wage bracket the each employee should fall within. I think periodically comparing employee wages to that of the current marketplace is a good procedure to determine if employees are being compensated fairly, although I would also offer performance-based bonuses to improve morale, employee retention, and keep a competitive atmosphere within the workplace.
According to Hollis, employers should "Take advantage of online salary surveys, or if you belong to an industry association, tap into its shared wage information - most have figures for various positions within their given fields" (BC Business, 2008). Also knowing exactly what the company can afford to pay employees is key to determining wages. Obviously the amount a company can afford to pay will determine the level of employee they can afford, so creating employee incentives can help attract higher-quality employees.
References:
Dessler, G. (2013). Human Resource Management (13th ed). Upper Saddle River, NJ: Prentice Hall Inc.
Hollis, S. (2008, October 9). How to Establish Fair Compensation. In Finance.