Caceer Development-Compensation

Caceer Development-Compensation

Career Development Plan-Compensation

Carla Fransaw

Human Capital Management


University of Phoenix

Dr. Wicker

January 28, 2009

Career Development Plan-Compensation

Compensation is a buzzword that prompts employees to think how is my employer going

to compensate me for my hard work and dedication. Compensation, which includes direct cash

payments, indirect payments in the form of employee benefits, and incentives to motivate

employees to strive for higher levels pf productivity. The components of a total rewards package

that will motivate the employees job descriptions, salary ranges/structures, and written


Before our organization can implement a compensation plan for the new team, we must

consider what the company can afford to pay in relation to pay scale and company

competitiveness. We will need to be objective when instituting the new pay system and areas of

fairness and equity will be assessed. The three areas of equity cover internal equity relating to

the actual worth of the jobs to the organization, external equity covering wages paid and are the

wages paid for considering market rate outside the organization. The third equity is individual

and defined means is each individual rate of pay fair and relative to that of others that do the

same job.

To develop a pay system, we will focus on assigning monetary value to each job. To set

up compensation plan that company will have to update job description, institute a job evaluation

method and conduct pay surveys and develop a pay structure. The new compensation plan for

the administration departments .will ne the merit pay system. Merit Pay system is an incentive

plan implantation on an institutional wide basis to give all employees an equal opportunity for

consideration, regardless of funding source. There are advantages as well as disadvantages of the

use of the merit pay system Allows the...

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