Essay: Equal Employment Opportunity Laws

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A successful organization is comprised of skilled and competent employees with various job responsibilities and roles. To hire and retain these types of employees, the employment opportunities that are made available to them should also reflect in the kind of skills, professionalism, and competency that the organization wants. The various factors that will influence the employment decisions of employees such as their personal needs and goals, the motivation, compensation, incentives, benefits, etc. are important considerations to develop an effective strategy that is applicable to employees from different generations and with different job descriptions. In this paper, a crucial issue for the organization which is the compensation package that is developed to motivate both new and current multigenerational employees will be presented in detail.
Equal Employment Opportunity Laws
The presence of equal employment opportunity laws greatly affects the compensation practice in the workforce. The amount given to each employee is regulated, making sure that the measure of the compensation that will be given is not based on factors such as gender or race/ethnicity. The measure that is now implemented among different companies regarding compensation strategies is the value of job position, including the duties and responsibilities that it entails. The compensation plan of the organization is now based on the productivity, tenure, performance, etc. which are good objective measures of the contribution an employee is able to give to the organization/company (Akter & Husain, 2016).
Pay-for-performance VS Competency-based Pay
Strategies that many companies use are the pay-for-performance and competency-based compensation policy. There are many advantages and disadvantages to both strategies and considerations should be made in choosing the right policy that will bring the most benefit to the organization and its employees. The pay-for-performance is advantageous especially for those employees who reap the financial rewards of their excellent performance at work. Basically, the focus of pay-for-performance is the employee motivation and retention of the skilled top employees, but there are also disadvantages to consider with this type of compensation strategy. The issues with this kind of policy that are seen as disadvantages by analysts are the assessment or measures used that are focused on the goals which may result in frustration on the part of the employees and the difference between the levels of participation and work performance. The separation between the employees affects the job satisfaction of those who are not reaping the benefits of the policy resulting in a negative outcome in terms of the employee’s well being and outlook on the organization (Akter & Husain, 2016). The competency-based compensation on the other hand rewards the employees based on their abilities at work such as multitasking, management, etc. that are related to his/her job descriptions. This compensation plan instills the culture of achievement and continuous growth in the organization which benefits not only the organization but the improvement of the ...