Discussion: Salaries and Wages: Direct Financial Compensation
The system of salaries and wages, or direct financial compensation, provided by an organization vitally impacts its ability to attract and retain talented employees. The design of an organization’s pay system is not a simple matter but one that balances many forces: equity issues, labor markets, an organization’s financial health, and federal laws to name a few. Knowing how to weigh these issues to arrive at a balanced plan appropriate for your particular organization is the mark of a manager well-versed in the skills of human resource management.
For this Discussion, review this weeks Resources.Review Chapter 7 of Human Resources Management for Public and Nonprofit Organizations. Pay particular attention to the factors that influence compensation policies. Focus on how the pay system issues and concepts may affect government and non-profit organizations differently. For example, you may wish to discuss the issue of external equity and local government pay systems.
With these thoughts in mind:
By Day 4
Post a brief description of a compensation issue in a government or non-profit organization. Explain how the issue might impact the pay system of the government or non-profit organization you selected.