Unit 4 Assignment
Billy’s Bar-B-Q wants to open a new Texas style restaurant in the North. This paper will identify the different systems of compensation as well as the benefits and disadvantages of each. It will define comparable worth and how companies can compensate their employees based on this and not break any federal legislation.
What are the different types of compensation systems? What are the benefits and disadvantages of each type of compensation? Companies have to compensate their employees for the work that they do. What is Comparable Worth? How do companies attempt to compensate their employees based on the ...view middle of the document...
The disadvantage of bonuses is that employees can feel underappreciated or unfairly treated. The benefits of stock options make it worthwhile for the employee to stay employed at the company longer and allows for healthy competition. The disadvantages of stock options is that employees can feel underappreciated or unfairly treated (Kaput, 2012). The benefits of benefits are that they help with recruitment and retention of employees and staff that are healthier. The disadvantages of benefits are that there is a significant cost for the business and plans that are going to change (Belcher, 2012).
Comparable Worth, or pay equity, is the idea that people who perform work of comparable skills and responsibility, whether man or woman, should receive equal pay (Comparable Worth, 2012). Different jobs require a different set of skills which can make one job pay more than another job. The positions that are sex-segregated are to be reanalyzed for worth to a company to raise wages for traditionally female-dominated jobs, such as office secretaries, to the level of those male-dominated jobs, such as construction workers (Comparable Worth, 2012). This type of policy has to evaluate all jobs and give them points according to the level of knowledge and responsibility it takes to do the job and then make salary adjustments whenever it is seen that one gender is being paid less than the other for similar points (Pay Equity, 2012). Companies would have to have an outside consultant to rate the job positions with points of the levels of knowledge and responsibilities of each job held within the company then make pay changes if equal points receive different pay in order to compensate employees on a Comparable Worth concept and not violate and federal legislation. The outside consult must be an expert in rating job qualities and because he comes from the outside, he is not biased to one job in the company over another. Rating the jobs requires knowledge of the jobs and the information of the employees holding the jobs. A female clerk typist would have the same points as a male delivery van driver and therefore should be paid the same wages. A job that is...