Employee Compensation Questions and Answers
Employee Compensation
There are many elements in compensation and noncompensation systems. What are your thoughts about these components?
Compensation systems are those systems in which employees of organizations are given rewards by the organization for their efforts on its behalf. There can be financial and nonfinancial types of...
Employee Compensation
Why would the appropriate method of compensation for a computer software worker and an assembly worker be different?
The appropriate method of compensation would be different for these two types of workers because they do very different kinds of jobs. The ways in which they work, and the ways in which their work...
Employee Compensation
What are one or more issues that will help define future of compensation professionals’ work?
There are many issues that will help to define this future. Let us look at two. One will be the growing pressures from globalization. These pressures will force compensation professionals to be...
Employee Compensation
Why should market forces play a bigger role than government in determining coaches' wages?
I assume that this question refers to the wages paid to coaches of state schools. It would not make sense if it referred, for example, to NFL coaches. I will base my answer on this assumption....
Employee Compensation
What global issues are impacting compensation in this country?
The answer to this depends to some degree on the type of job in question. However, we can make some general observations that apply to most American jobs. The major global issue that affects...
Employee Compensation
How do merit pay systems work?
Merit pay systems work differently in different specific companies, but the basic idea of merit pay is the same in all companies. The general idea of merit pay is that employers identify certain...
Employee Compensation
How does sales compensation work?
Sales compensation programs general work on a combination of straight salary and commissions and bonuses. The exact program will generally vary based on the type of firm and on the goals that the...
Employee Compensation
What are some ways to be creative when rewarding employees?
One of the major reasons to reward employees is to motivate them to continue to perform well or to perform even better. In other words, rewards are not just about recognizing what employees have...
Employee Compensation
Describe the primary reasons salary and rewards may vary between positions.
The most important reason for the variation in compensation between positions and between professions is supply and demand. In a free market economy such as ours, wages, like most prices, are...