Compensation discussion
The onetonline.org has a custom report menu that enables users to construct a report including only matters meeting their specific criterion. A check box exists at the left of the content area, to choose any content areas needed to be incorporated in the report. Included in the customs report are the profession code, name and description. In addition, samples of job names given by current employees are shown. It is rare for the employee to make more money than their bosses are. In this situation, however, it is usually because the employee’s practical expertise is more appealing than that of his boss. Therefore, there is never anything wrong with the pay scale or the organization. An employee with more expertise is usually paid more than an unskilled person. However, in case of lack of market facts to validate the inequality in pay, then the company’s human resource should be asked if the company intends to resolve the pay difference. If it does not intend to, then a reason for leaving the direct boss’s salary below that of an employee should be given (Carey, 1994).
Ex-pat workers salary should be increased and include hardship pay in cases where they have been located in places of hardship. Issues such as a limitation of freedom, traffic, high crime rate and drought constitute hardship. The ex-pat worker should also be provided for medical insurance by the company. The cost of living of the ex-pat’s destination should be considered. A good example is the housing situation that may be expensive even when other basic needs are cheaper. Therefore, the salary should be increased to cater for the high cost of housing. If the housing is already paid for by the company, but other basic needs are expensive, the salary will be increased to cater for this. In this case, when Maggie is being paid, all these factors should be put in to consideration (Carey, 1994).
Ex-pats worry about the fluctuating exchange rates since they might end up withdrawing little money that can barely get them through the month. Due to this, some international corporations offer their ex-pats the split pay option. This compensation option divides the ex-pats salary in to the part of the currency to be spent and home currency. This is so that the amount of money that should be exchanged is minimized. Split pay has existed for some time, and more companies are embracing it. If all the salary is paid in the host country currency, the amount of revenue fraction of the salary to be spent is controlled by the cost of living changes. The remaining part will be affected by exchange rate fluctuations. However, when the whole remuneration is paid in home currency that fraction of money not spent such as the savings will be free from inflation and exchange rate fluctuations. The remaining part will be affected by the exchange rate fluctuations (Carey, 1994).
The employers use the compensation strategy to attract competent employees and maintain them. For them to do this, they have to offer remuneration that is higher than the market rates. Employees that produce quality work are acknowledged and rewarded. The amount of salary to be paid should not be reduced by the employer when he expects great performance. In order to improve the organization’s effectiveness, desired behaviors should be achieved. This opens the doors to success. The compensation strategy may strengthen the organizational ethnicity that is preferred. This culture enables the employee performance determine the pay. The objective of the organization should be evident so that they are achieved using the compensation strategy. These objectives should be communicated to everyone soon as they are established. This is to avoid failure of great decisions due to poor communication. Communication failure makes the current strategy ineffective. To be an employer of choice, you should provide job security, respect to employees, growth opportunity, commitment and recognition of employees. This makes the strategy effective (Carey, 1994).
Reference
Carey, J. F. (1994). About pay: Discussing compensation. Menlo Park, Calif: Crisp Publications.
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