COMPENSATION AND PERFORMANCE MANAGEMENT

Compensation and Performance Management

Compensation and Performance Management

Introduction

Compensation packages can be linked to business structure, employee recruitment, retention, motivation, performance, feedback and satisfaction. Compensation is typically among the first things potential employees consider when looking for employment. It is important, therefore, to give a lot of consideration to your business's compensation structure. After all, for employees, compensation is the equivalent not to how they are paid but, ultimately, to how they are valued.

Discussion

When it comes to employee compensation, most managers are busy asking: "What do I have to pay to?" That is not an easy question to answer. A better question might be: "What do I want my compensation package to say?"Compensation package of the organization says it all like the child care and health benefits say that the company values family. Giving longevity bonuses for employees on the anniversaries of their employment says that the company value employees who stay with the business. Throwing a party at the end of your business's busy season lets the employees and their families know that you appreciate it when your people go the extra mile. No matter what compensation elements the company uses, they all carry a message.

Compensation StructureA Successful compensation structure, are more like a total rewards system, containing non-monetary, direct and indirect elements. It's important to give a lot of consideration to the business's compensation structure because it ultimately reflects how employees are valued. The compensation program consists of:Direct compensation is an employee's base wage. It can be an annual salary, hourly wage or any performance based pay that an employee receives, such as profit-sharing bonuses.

Fair Labor Standards Act

Fair Labor Standards Act or Wages and Hours Act, passed by the U.S. Congress in 1938 to set up smallest dwelling measures for employees committed exactly or obscurely in interstate business, encompassing those engaged in output of items compelled for such commerce. A foremost provision of the proceed was establishment of a smallest salary , primarily $0.25 an hour, along with a greatest workweek of 44 hours; these were to become to become $0.40 an hour and 40 hours after seven years. Other provisions set measures for overtime reimbursement and ostracised goods of progeny work from interstate commerce. A Wage and Hour Division was conceived in the Dept. of Labor, going by an manager empowered to accelerate the lifting of measures inside an commerce if a managing assembly comprising the public as well as employers and work suggested change.

Impact

The Fair Labor Standards Act (FLSA), first enacted by the United States Congress in 1938, groups measures for the rudimentary smallest salary and overtime pay. The FLSA furthermore groups measures for recordkeeping and for progeny labor. The FLSA sways most personal and public part paid work, encompassing state, localized, and government government.

The FLSA needs employers to pay workers who are not exempt from overtime not less than the government smallest wage. Employers are furthermore needed to supply overtime pay of one and a half times the non-exempt employee's normal rate of ...