[Solution] Maintaining Human Resources
Created at:
Author: Emily Carter
Compensation, Benefits, and Career Planning
In addition to attracting and developing effective employees, an organization must keep those employees engaged and motivated. After all, if highly qualified workers quit or simply stop trying very hard, the organization will not be getting good value from its human resource investment.
Compensation
Compensation is the financial remuneration that the organization gives to employees. There are three terms used to describe the basic kinds of compensation:
- Wages are the hourly pay of operating employees.
- Salary is the pay of professional employees, who are paid for their total contribution to the organization rather than for hours worked.
- Incentives are payments for meeting specific criteria. One example of an incentive is a sales commission paid for closing a sale.
Select the words or phrases that best complete the following sentences.
The hourly pay of operating employees is often referred to as .
The compensation analyst must determine which jobs in the organization pay more or less. The analyst is making a decision.
View Explanation
The pay of workers who are paid by the hour is often referred to as wages.
Organizations must decide which jobs are paid more and which are paid less. For example, the organization might decide that a vice president job pays better than an assistant vice president job, which pays better than a director job, which pays better than a manager job. The organization also needs to decide how much difference there will be between pay for jobs at different levels.
Why should organizations concern themselves with employee career planning?
- Through career planning, an organization can guarantee promotions for employees who seek career advancement.
- Career planning is a way to address poor performance by transferring struggling employees into less demanding jobs.
- Career planning is a way for employers to find out which employees are thinking about leaving so the organization can stop investing in those employees.
- Employees will probably change jobs, and discussing career planning with employees helps the organization with its workforce planning.
View Explanation
Employees at all levels and at all stages of their careers will probably change jobs at some point. An employee may stay in the same field at the same organization but move into a different job, such as by getting a promotion. Alternatively, employees may change jobs because they go work for a different organization or become self-employed, or they may move into a different career field. Sometimes it is the organization that changes, forcing employees to take different jobs. Whatever the reason for the job change, open, ongoing conversations between the organization and its employees can help the organization provide meaningful training and development to employees, help employees envision meaningful paths for themselves at the organization, and help the organization anticipate likely vacancies and do appropriate succession planning.
