Organizational Objectives and Total Compensation in Different Market
Autor: Brittney Lee • April 11, 2016 • Research Paper • 423 Words (2 Pages) • 1,127 Views
Organizational Objectives and Total Compensation in Different Market
Total compensation “represents both the intrinsic and extrinsic rewards employees receive from performing their jobs. Together, both intrinsic and extrinsic compensation describe a company’s total compensation system…Intrinsic compensation reflects employees’ psychological mind-sets that result from performing their jobs. Extrinsic compensation includes both monetary and nonmonetary rewards (Joseph J. Martocchio/University of Phoenix, 2014).” A company’s compensation plan is a way to attain high performing employees. Compensation may include or be limited to hourly wages or an annual salary, bonuses, incentives and benefits.
Laws and Regulation
According to the Fair Labor Standards Act of 1938 which “establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments ("Fair Labor Standards Act (FLSA) Of 1938", 2016).” There is also the Equal Pay Act of 1963 that goes hand and hand with the FLSA. The Equal Pay Act of 1963 is “to prohibit discrimination on account of sex in the payment of wages by employers engaged in commerce or in the production of goods for commerce ("The Equal Pay Act Of 1963", n.d.).” These two laws ensured that there is a fair minimum wage along with any sort of discrimination.
Similarities and Differences
When a company decides to create a compensation plan there are a couple of factors that go into this process. A federal contractor would have to have a different approach when hiring because hiring for a federal contractor is not the same as hiring a cashier for your local retail store. For example, one must take into consideration that everyone is protected from discrimination and they also must earn overtime according to the FLSA. There are plenty of considerations to be made to present an attractive compensation plan to an employer, but also a lot of legalities to take account into.
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