Fair and Equitable Compensation Essay - 969 Words

Fair and Equitable Compensation MGMT 365 04/01/2012 MGMT 365 04/01/2012 Fair and Equitable Compensation Compensation is an important factor in the business world; both for employees and employers. Employees are trying to get what they feel they are worth. On the other side employers are trying to get quality workers at the best price they can; this is so they can increase their bottom line. Depending on which side you are on, the views of what is fair and equitable varies. The key is to come to an agreement that both can be happy with. The book Strategic Compensation by Martocchio, states â€Å"compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs† (P3). Intrinsic represents†¦show more content†¦If a person goes to college or has a skilled trade they should be paid according to their skill level, since they bring that knowledge into the workplace. Employees should do their research before accepting a job offer. They should know what the average pay is for the work they will be doing. This will help them when they come to the bargaining table. On the other side of this argument is the employer. From their perspective they are trying to cut cost and get their money’s worth from their employees. An article by June Lane in Associations Now states that there is five important tips a company should consider when determining a fair compensation. They are equity, purpose, accurate data, job descriptions and more than money (intrinsic). A company that wants quality workers and the ability to retain them will offer their employees a fair and equitable compensation packet. An employer can’t always pay top dollar especially in today’s economy. An employer is in a struggle to keep their employees happy and not bankrupt the company in the process. Employees need to know that compensation is going to be based on the current economic status. Sometimes it can be hard for a company who wants to pay higher wages but don’t have the income to do so. Unions can be a hindrance for a business to deal with. Sometimes t hey are not willing to budge and the company has no choice but to layoff or close down. This is what happed in my hometown of Detroit, Michigan. MyShow MoreRelatedEssay about Fair and Equitable Compensation1766 Words   |  8 Pagesemployees. Adequate rewards and compensations potentially attract a quality work force, maintain the satisfaction of existing employees, keep quality employees from leaving, and motivate them in the workplace. According to research conducted by the Corporate Executive Board, the most important workplace attribute is compensation, (The Increasing Call for Work-Life Balance, 2009). 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