Career Development Plan-Compensation
Carla Fransaw
Human Capital Management
HRM/531
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
procedures.
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...