Choose one of the following items and expand upon it in the discussion area: Pre
ID: 354040 • Letter: C
Question
Choose one of the following items and expand upon it in the discussion area:
Previous legislative wanting to increase the FLSA Overtime Provisions - The legislation, injunction and its effect on employers/employees;
Rising Wages in China - how does that impact us;
Underemployment and the Compensation-productivity Gap;
Workforce Demographic Shifts - Explain the influence of the changing workforce demographics on employee benefits practice;
What issues, do we as Compensation Professionals face today;
Lastly, how does ethics impact Compensation.
Explanation / Answer
The selected topic is issues faced by the compensation professionals in today’s business environment.
A role of the compensation professional is to design and implement a compensation program that can not only fulfill the expectations of the employees as per the organizational guidelines, but also to motivate them to deliver their best performance and achieve the organizational goals. In this regard, the first issue faced by the compensation professional is to identify a right compensation plan that can satisfy the expectations of the employees. It can be fixed, or variable, or a combination of fixed and variable compensation so that there is a scope of the incentive for the best performing employees and a source of inspiration who want to deliver a good performance. It is a very important issue as it also affects the turnover rate of employees in the organization. The second issue is to take strategic initiatives to make a compensation that is at par when the companies go to the overseas market. Here, the compensation can be decided on the basis of home country or host country or global compensation plan that is equal for all the employees working at nay location. Since cost of living and other expenses vary drastically from one to another international location, it becomes a challenge for the compensation profession.
The third issue is to manage the expectations of the employees having different social, cultural and economic background, a result of diversity initiative in the organization. The value system in each culture analyzes differently to the one compensation system. So, the expectations of these employees belonging to different socio-cultural system also varies. Hence, diversity drive can only be successful when these concerns are properly addressed by the compensation professionals. The fourth issue is to work and develop reward programs on top of the basis compensation, that will help the managers at other functions to encourage the employees and motivate them. Hence, the role of compensation professional becomes very broad and it is very important in helping organization achieve it is goals and objectives.