ESSAY: Compensation Evaluation

You were hired to work as a HR Consultant for a small local hospital, with the task of expanding the workforce of certified medical assistants. Looking at the current three employees, you find a discrepancy in compensation between Susie, a 2-year employee at $28,000, Tom, 5-year employee at $27,000, and Raul, a 10-year employee at $33,000. All are employed as certified medical assistants, yet they all make different amounts of money. According to survey data, all three employees are below the market rate for this job in the local job market. All three employees are also exemplary employees with near perfect scores in their most recent performance evaluation.

Write a 700- to 1,050-word paper that includes the following:

Explain the discrepancy in pay among the current employees.
Describe the strategy you would take to correct the internal equity issue.
Describe the strategy you would take to correct the external equity issue.
Explain how you will ensure that new hires will be paid equitably both internally and externally.
Explain how an organization’s Total Compensation strategy affects an organization’s financial operations and its ability to attract, motivate, and retain top talent.

ANSWER

Compensation Evaluation

Discrepancy in Pay

            In every organization, employees often pay attention to what they will be getting in the form of payment after rendering their services and applying their skills in the workplace. By doing so, their expectation is that their employers will compensate them as per the agreement or as stipulated in the contract. Employees are different in every organization, and their compensation varies…

This kind of discrepancy in compensation depends on other factors such as the level of education, experience, and skills. For instance, employees with a high level of education, skills, and experience tend to be paid more compared to those with low levels of education and less experience. According to Mabaso and Dlamini (2017), skills is the major factor that triggers pay discrepancy as those with desired…

A Strategy to Correct the Internal Equity Issue

            Given the scenario provided, it is important that a viable strategy is identified as it will facilitate easy identification of the underlying problem of discrepancy in pay among employees in the organization. As the HR consultant, the first strategy that best suits the situation is the reviewing of the experience and skills records of all the three employees. This move will be important as situations involving employees paid more, for instance, but with less experience will be avoided, and vice versa. A review of the records will also ensure the management is no longer biased in their compensation methods, which means the employees will be paid depending on what they have in terms of education, skills, and experience. Lastly, a change in organization policy towards the employees’ equality will get rid of discrimination. Flammer e al. (2019) conclude that the HR team should also ensure employees who lack negotiation abilities are considered for allowances and perks/bonuses to…

Strategies to Correct the External Equity Issue

            According to Flammer e al. (2019), the discrepancy in pay occurs when employers across organizations seek to increase revenue and profits by minimizing labor costs and wages. Therefore, in order to ensure the external equity issue is solved, the strategy that should be applied is the passage of labor laws via employment legislation, which will facilitate the formulation of employment policies urging employers to follow a standardized pay rate (Flammer e al., 2019). At the same time, trade unions should be established where every employee will be required to enroll; unions will champion uniform or equal pay for all employees with the same education…

Ways to ensure New Recruits are paid equitably, both externally and internally

            Normally, whenever an employer seeks to recruit more employees, they often go for the candidates with the highest level of education, reach experience, and quality skills as they will be able to perform. These strategies were the perfect way to bring in the right talent for the company, employers also tend to identify ways of minimizing the labor and recruitment costs in order to avoid paying more (Mabaso & Dlamini, 2017). Therefore, in order to make sure employees do not suffer, it is important that the employees enroll in various trade unions for them to have a platform to negotiate for better and equitable pay. At the same time, the new recruits …

The Total Compensation Strategy             Organizations better placed to employ fully-implemented pay strategies can have a lot of positive implications in their organizational practices. The primary reason is that the organization, first, considers equality and fairness, which means employees are compensated based on their education level, and skills and experience. Such organizations are able to establish a good impression and reputation from the society and, i…