Compensation and Benefit Systems: fair and equitable compensation

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Compensation and Benefit Systems
Introduction
Compensation for employees is the major motivating factor for them and good compensation is important in boosting the morale of employees and makes them serve the organization diligently. Employees are the greatest asset in the organization and they have to be nurtured so that the organization progresses. Fairness ought to be exercised in employees` compensation to appreciate them for their efforts and encourage them to work even harder. The report that is presented gives my personal perception on what I consider as fair and equitable compensation (Martocchio 13). The argument is based on both the employer`s and employees` point of view, since each holds different of opinion on the compensation strategies that are applied in organizations.
Personal perceptions of what I consider as fair and equitable compensation.
Employers` compensation to employee can either be in the form of wage based on the hours worked or can be based a salary that is paid for a particular job regardless of the amount of work done. It is the decision of the employer to determine whether employees receive a wage or salary as long as they are compensated fairly for the work that they have done. It is disheartening for employee to receive wages that is lower than their expectations as this is not only oppression to them but also demotivating (Boyet, 24). While setting up the amount of compensation in terms of monetary value that is to be granted by an organization several factors are considered to ensure fairness and equality in the organization. There are some reported instances in organizations whereby employees in the same work level, with similar educational background and similar work experiences were compensated differently. This is an act of injustice and is not fair to the employee.
The wages ought to be set high enough to motivate the employee and retain them in the organization. To ensure fairness, the company ought to offer salary scales that are similar to other organizations that are in the same level. An example is in the banking sector whereby a teller in one bank ought to get the same compensation value as another individual working as a teller. Even if there are discrepancies in the compensation value, the margin should not be too big (Martocchio 19). The wage must also be equitable to the amount of work that the employee has done. The quality and quantity of labor performed by the employee is the aspect that is converted into monetary value in order to ensure that compensation is carried out fairly.
The position occupied by the employee in the organization in many organizations determines the level of compensation that the employees receive. This factor is not a measure of fairness and equality as top management get huge amounts of salaries at the expense of operational staff that are responsible for performing the major tasks in the company. Although the management is responsible for decision making, they should not misuse their positions to offer themselves huge compensation rates leaving bottom-level employees getting less income compared to the amount of work done. Employers therefore ought to review the salary scales to offer more ...