R1
A wage and salary survey compiles hourly pay figures and yearly wages numbers for a given industry. The information is put together so that a prevailing industry wage for many job positions is average in that industry. This wage and salary survey aids a business in learning what wages are competitive and appropriate pay for all employees. A survey such as this one needs to have the correct year and specific financial information each time its performed because it is constantly changing. (Lister, 2016)
When an organization requires assistance to collect wage data for the wage and salary survey, they entrust this job to an employer association. An employer association would be a neutral third party that puts together the wage and salary data of the industry, geographic area, or target marketplace that the organization asked of them. A business will be afraid to give their competition their financial information because they could lose their employees for better benefits at the other company. (Lister, 2016)
Organizational structures, the type of business, and size are important considerations. To make accurate wage and salary comparisons, each of these factors must relate closely to the company. (Lohrey, 2019)
Factors to consider when making the correct wage and salary comparisons:
- organizational structures
- the type of business
- the size of the business
These factors are essential to consider and must correlate approximately to the business. (Lohrey, 2019)
I think the objection is valid when it comes to granting wage increases on a percentage basis. It would not be fair to the employees that get paid a considerably lower wage. An employee paid $40,000 a year, and one that is paid $100,000 received a percentage-based wage increase of 5%. The 5% of $40,000 would be $2,000 and 5% of $100,000 would be $5,000. I know it does not seem like that much of a difference, but the employee that struggles to make ends meet would need that extra money.
Reference
Lister, J. (2016, October 26). What Are the Basic Steps to Obtaining a Wage and Salary Survey? Small Business – Chron.com. com/basic-steps-obtaining-wage-salary-survey-34073.html.”>https://smallbusiness.chron.com/basic-steps-obtaining-wage-salary-survey-34073.html.
Lohrey, J. (2019, February 11). Factors to Consider When Conducting a Wage & Salary Survey. Bizfluent. com/info-8595255-factors-conducting-wage-salary-survey.html.”>https://bizfluent.com/info-8595255-factors-conducting-wage-salary-survey.html.
R2
Obtaining a wage or salary survey requires a small or large business to hire an outside company to compile the data or collect the information using individual employees and businesses from across the industry (Mayhew, 2017). This data is necessary for a business to create competitive salary packages and to comply with state and federal regulations regarding prevailing wages.One factor to consider is a wage or salary survey is time-sensitive and falls out of relevance very quickly. A survey of this type must always have the year or the financial quarter the data came from clearly stated on the document.
The objection made is not quite valid as the compensation structure was formed using the combination of external and internal factors. The internal factors include salary structure of an organization, capability of the employee, ability of the employer to pay the desired candidate and worth of the job. External factors like situation of the market, compensation rate prevailing in the industry, bargaining capability of the individual, legal necessities, and cost of living of the individual. Compensation of every individual is dependent upon the worth and business that individual is giving to the organization. Every grade has different structures of compensation depending upon the complexity of their roles and responsibilities.
Mayhew, R. (2017, November 21). Strengths & Weaknesses of a Salary Survey. Small Business – Chron.Com. com/strengths-weaknesses-salary-survey-44288.html”>https://smallbusiness.chron.com/strengths-weaknesses-salary-survey-44288.html
R3
LO 4: Because of competitive forces within your industry, you have decided to implement a profit-sharing plan for your employees. Discuss the advantages of profit sharing and identify specific characteristics that will ensure success for your plan.
I think that implementing a profit-sharing plan is going to be a great option for my employees. One advantage is that it will give my employees the opportunity to increase their earnings by helping to contribute to the growth of the organization and the profits it is bringing in. Another advantage is that a profit-sharing plan makes employees think and feel like they are owners in the business and part of something bigger. Typically, a profit-sharing plan will lead to commitment from all departments and levels of the organization instead of just one level of management or one department since the organization is looked at as a whole. Employees are more likely to strive to increase productivity since the more productive they are, the higher the profit-sharing payout will be potentially.
LO 5: Create a list of different types of incentives companies can offer professionals not interested in administrative positions.
There are multiple different incentives that organizations can offer to employees, especially those that don’t have plans of moving up into positions of leadership. A profit-sharing plan is one since all employees will be eligible for the payout, not just members of management. Stock options or employee stock ownership plans are also good ways to incentivize employees that are content in their current positions. Many organizations provide commission plans based on a percentage of the sales the employee has. Other organizations opt for a bonus structure that is achieved by reaching targeted sales goals. Awards, recognitions, and merit raises are also good ways to incentives your employees to put forth their best work. It is important for an organization to understand what incentives will work best for their employees and the organization.
R4
LO4:
Profit sharing plans are intended to give employees the opportunity to increase their earnings by contributing to the growth of their organization’s profits ((Snell et al., 2016). Profit sharing can help stimulate employees to think and feel more like partners in the enterprise and thus to open themselves with the welfare of the organization. Profit sharing serves as a motivational tool. Currently I work for a company that has chose to implement profit sharing. Incentivizing employees help them increase their effort which results in higher levels of employee productivity and satisfaction. Employee’s feelings of ownership and loyalty increase as they buy into the company’s vision. Implementing a profit sharing typically less risky than implementing bonuses. The cost is typically proportional to revenue and organizations do not have to worry about creating a bonus program that’s too large or small. It also cultivates an atmosphere for accountability and improves efficiency rates.
Snell, S., Bohlander, G. W., & Morris, S. (2016). In Managing human resources (pp. 331-335). essay, Cengage Learning.
LO5:
Raises
Incentives for tenured associates to get additional PTO
Tiered reward programs
Mentoring and development programs
Referral bonuses
Profit sharing bonuses
Employee discounts
Spot rewards based on completing a specific task or goal.
Team incentives that focus o the results of a small group of employees
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