Compensation Essay

1202 words - 5 pages

Organizations recognize compensation as an important factor in employee satisfaction. Many companies are committed to providing compensation packages that are competitive and reward great performers for the results that they achieve. Today, organizations have moved away from the times where end of the year increases were automatically given, regardless of how good or bad one performs. We are operating in times where salary, bonuses, and other incentives are directly linked employee performance. While many associates may believe pay raises and other incentives are entitled, organizations are placing more emphasis on employee performance to determine if salary increases are deserved.
...view middle of the document...

The results are monitored and reviewed by management. After reviewing the results, management has the ability to reward deserving associates for their hard work and dedication. Increasing knowledge or skills, working on special projects, increased productivity, performing job duties at a high quality level, and acting as a mentor to new and existing employees are some ways that can assist in increasing ones salary.
It is crucial that both management and employees keep record of their contributions and accomplishments made to the organization. This information is important for the annual review period. Using annual performance reviews to determine pay raises helps because associates will be aware of what was expected of them, how their performance was be analyzed, and how they will be rewarded for their efforts.
There are specific areas that individuals will be rated on: quality and quantity of work, communication, personal relations and teamwork, and dependability, to name a few. Depending on the employee’s final rating, a raise may or may not be given. An overall performance rating of 2 (mixed results), 3 (consistently successful), 4 (highly Successful), or 5 (among the best) are eligible to receive an increase in salary. Associates that receive an overall performance rating of 1 (unacceptable) are ineligible to receive an increase in pay. However, management can review their performance after six months to see if it has improved. If so, management can request an increase at that time.
Departmental Performance, or group performance, is another method Wellpoint Inc. uses to grant salary increases. As a group, essentially we are responsible for ensuring each employee in the department work towards a common goal, which is to achieve success for the organization. Group pay is used for a variety of reason. It encourages behaviors that will aid in achieving goals and objectives set for the department. This includes providing support for the team members, sharing information that becomes available, monitoring the performance of other associates and providing feedback to team members. These behaviors will assist in ensuring the department, each individual, and the organization is successful.
The measures that apply for individual performance are slightly different from the measures for group employees when determining increases in salaries. There are goals and objectives established for the department or group, and they are expected to be successful in meeting those objectives. Steps to devise a plan for effective team performance measurements should be in place and group priorities and expected results must be communicated. How well the team work together as a group, problem solving techniques, the number of cases completed, and the effectiveness of the teams work are all examples of measures that will be addressed. Management will review the final results and relay the information to the department.

Other Papers Like Compensation

Compensation Essay

653 words - 3 pages CASH COMPENSATION Base wage is a cash compensation that an employer pays for the work performed. It reflects the value of the work or skill and ignores difference attributable to individual employees. Some pay system set base wage as a function of the skill and education an employee possesses. MERIT PAY/ COST OF LIVING Periodic adjustments to base wage may be made on the basis of changes in what other employers are paying for the same work

Compensation Essay

1295 words - 6 pages Compensation – Chapter 7 Review for Exam M/C Practice Questions  Know compensable factors (275) Compensable factors are characteristics of jobs that are valued by the organization and differentiate jobs from one another. They can also be described as the characteristics in an organization that help pursue its strategy and achieve objectives. The four main categories are: 1. Skill 2. Effort 3. Responsibility 4. Working conditions


717 words - 3 pages training such as technical schools, vocational schools and college should qualify a person to receive compensation above the minimum wage. Included in establishing a pay system for these employees, consideration should be given to the amount of time and finance required to obtain certification. Findings indicate that workers with a college degree earn significantly more than those without. Since the mid-1980s, education has played a large part in

Hr Compensation

843 words - 4 pages | Compensation | Defining compensation, compensation philosophy, and critical components of a compensation. strategy. | | | Introduction Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. (Hr guide 2000) Compensation is a financial tool used by companies in every industry as an incentive when recruiting new employees. It is also used with existing employees to induce

Executive Compensation

838 words - 4 pages Session 9 Samstag, 6. September 2014 13:30 Session 9 Prep Topic: CEO compensation Reading • Résumé Pedro Matos, Darden Professor • Chapter 7 in Corporate Governance • Chapter 7 in Boards That Deliver • Bargain Bosses, American chief executives are not overpaid, The Economist • How to get paid like a U.S. CEO, Fortune • Executive Compensation Corporate Governance: Chapter 7 - CEO Compensation • Norms for CEO compensation ○ Proxy

Strategic Compensation

1335 words - 6 pages Name Instructor Course Date Human Resource Management: Compensation I perceive compensation for an employee includes his or her salary, and the indirect and direct benefits and rewards. According to Martocchio (97), these benefits include pension plans, medical covers, life insurance, and paid leave among others. Conversely, rewards include bonuses and salary increments to name a few. I conceive fair and equitable compensation

Compensation Culture

266 words - 2 pages Compensation culture Compensation culture describes a society in which it is acceptable for anyone who has suffered a personal injury to seek compensatory damages through litigation from someone connected with the injury. It’s the idea that for every accident someone is at fault. For every injury, there is someone to blame. And, perhaps most damaging, for every accident, there is someone to pay. There are so many ridicilous cases


2009 words - 9 pages - Assignment 5 – E-COMPENSATION Craig Doss December 21, 2012 Human Resource Information Systems (HRIS) - HRM 520 Dr. Zelphia A. Brown, SPHR, Instructor Assess the advantages and disadvantages of using a Web-based compensation tool versus a client-server based or stand-alone PC-based system and then give your opinion on which system would provide the most value to an organization’s stakeholders. Include three (3) facts to support your

Compensation System

3882 words - 16 pages . Vision-----------------------------------------------------------------------------------0811. Mission---------------------------------------------------------------------------------0812. Corporate Objective ----------------------------------------------------------------0813. Organizational Structure--------------------------------------------------------------0914. COMPENSATION FOR TOP MID AND OPERATING LEVEL-----------------1015. Compensation

Compensation Paper

3484 words - 14 pages Philosophy of Compensation Nikolette Arnold Letu How should a compensation plan reflect an organization’s mission statement and core values? The company’s mission and vision statements reflect its core values. For the same reason, having the right vision and mission statement is of outmost importance as it serves as a guiding principle for organizations to be able to stay focused on what they intend to do and how they should do it

Compensation Decision

3982 words - 16 pages Compensation Decision Angeline Berleus DeVry University HRM 590 Professor William Lauffer June 16, 2014 HRM590: Compensation Decisions Your job now is to pull together all the information you’ve completed so far in class and make salary decisions for your team. You have completed Cathy’s evaluation and received assignment feedback. This is the first year that you’ve made salary decisions for this team. Be sure to carefully review

Related Essays

Compensation Essay 917 Words

917 words - 4 pages Compensation In this assignment the upper management has asked Eric Garcia to suggest a new compensation plan specifically for the Puerto Rican team that include: A description of a compensation package for the new employment team, why the pay system will work, what reward package would motivate the employees to increase performance, compensation plan’s benefits to the individual and the company and how the Puerto Rican compensation plan

Compensation Essay 1864 Words

1864 words - 8 pages Pay is one of the most important elements of any organization. It is what compensates, drives, motivates, and rewards employees for the work they do. Or it does the opposite of these things. What is a strategic compensation strategy? Simply stated, it is the compensation of employees in ways that enhance motivation and growth, while at the same time aligning their efforts with the objectives, philosophies, and culture of the organization

Compensation Essay 956 Words

956 words - 4 pages Compensation Luis A Galloza University of Phoenix Human Capital Management in Puerto Rico HRM/571 PR December 21, 2011 Marta Angeli Rivera, PH-D. Compensation Compensation is everything the employee values and want and what the employer is able to offer in return for the contributions of the employee (Cascio 2006). This compensation system is composed of financial and non-financial incentives. Financial compensation

Compensation Essay 3028 Words

3028 words - 13 pages Military Compensation What is the Total Compensation? Before I take this course, I never even bother to try understanding the total compensation. While I am taking this course and learning the materials, I started to view and understand what could be the total compensation as part of the organization’s strategic planning in human resources management and operations. There are many ways to pay the compensation to its employees. Many people