The Contemporary Pay and Benefits Environment is “civil service compensation systems were designed with the assumption that an individual job was a basic unit or measurement and that the relationship of one job to another could be determined.” (Klingner, 2003).
The Elements of a Total Compensation Package will include salary, holiday, sick and vacation leave, and pension. There are several laws Affecting Compensation Policy and Practice: these include the Fair Labor Standards Act that regulates the minimum wage and overtime. The Equal Pay Act ensures that men and women are paid the same for the identical work. The 1964 Civil Rights Act (Title VII) protects employees from being discriminated against in the means of individuals Civil Rights. Age Discrimination in Employment Act protects older …show more content…
Traditional Merit Pay, Seniority Pay, and Cost-of-Living Adjustments consist that: merit pay is based on the individual’s superb performance in their jobs. Seniority pay is an increase in pay that indicates that the employee has been at there job long enough to increase his or her skills and knowledge. The cost-of-living pay adjustment is based of the employer keeping the salaries competitive enough to compete with the current labor market. There are different types of performance-based pay but one must determine if it should be added to the base-pay or omitted from the base-pay. One way to do this would be to consider an end of the year bonus. The problems and prospects in implementing pay for performance has encountered three detrimental factors. Those are: not all positions lead itself to pay-for-performance based compensation. Some organizations philosophies and organization charts do not lend themselves to performance-based compensation. There are peripheral factors such as unions, legal restraints and political
The Elements of a Total Compensation Package will include salary, holiday, sick and vacation leave, and pension. There are several laws Affecting Compensation Policy and Practice: these include the Fair Labor Standards Act that regulates the minimum wage and overtime. The Equal Pay Act ensures that men and women are paid the same for the identical work. The 1964 Civil Rights Act (Title VII) protects employees from being discriminated against in the means of individuals Civil Rights. Age Discrimination in Employment Act protects older …show more content…
Traditional Merit Pay, Seniority Pay, and Cost-of-Living Adjustments consist that: merit pay is based on the individual’s superb performance in their jobs. Seniority pay is an increase in pay that indicates that the employee has been at there job long enough to increase his or her skills and knowledge. The cost-of-living pay adjustment is based of the employer keeping the salaries competitive enough to compete with the current labor market. There are different types of performance-based pay but one must determine if it should be added to the base-pay or omitted from the base-pay. One way to do this would be to consider an end of the year bonus. The problems and prospects in implementing pay for performance has encountered three detrimental factors. Those are: not all positions lead itself to pay-for-performance based compensation. Some organizations philosophies and organization charts do not lend themselves to performance-based compensation. There are peripheral factors such as unions, legal restraints and political