HRES 2203 :Compensation And Benefits

HRES 2203 :Compensation And Benefits. Read “Eastern Provincial University” case study. 

Use the course content, textbook, and resources provided in this case study complete the following steps

.1. Using the information in the Job Factor, Degree Rating and Point Chart, complete Table 1: Job Position and Job Factors. (40 marks)

a. Apply the appropriate values for each of the ten factors in the table.

b. Arrange the job positions in hierarchical order.

For example, the job position with the maximum total points will be placed at the top of the table through to the to the job position with the least amount of total points at the bottom of the table.

Why are compensation and benefits important?

Compensation and benefits are important for two reasons.

First, people won’t work for you without pay. And unless you’re a non-profit organization, it’s illegal to ask them to work for you for free. There is a social contract between the employer and employee, where the employee puts in the work and the employer rewards this. Compensation and benefits are an important part of that equation.

Other things play a role too – and we’ll discuss them later – but what the employee receives is central. In addition to salary, benefits remain a crucial motivator for job candidates.

Second, as of June 2019, benefits make up 31.4 percent of the cost of employing someone. It is a significant expense with a clear goal so it’s not something businesses can overlook. This is why paying careful attention to a fair compensation and benefits structure is so important.

But, how does compensation motivate employees and do increases make a difference?

Compensation and benefits and employee motivation

Glassdoor found that a 10 percent increase in base pay resulted in a 1.5 percent increase in the chance that the employee would stay at the company for their next role, rather than moving on. While their findings were statistically significant and turnover is expensive, it’s probably not enough to convince a boss to give someone a 10 percent raise. 

This same research found that a higher company rating on Glassdoor resulted in a four percent increase in the chance that someone would stay at the company. Salary is clearly important, but there is something other than money going on.

A Payscale study gives some insight into the influence of salary. They found a strong correlation between pay and engagement (and engagement profoundly influences retention), but what was stronger is pay clarity. When employees understood that their compensation was fair, it increased their engagement.

Procedural and distributive fairness