Order 2019370: Organizational Objectives and Total Compensation

profiletutorthammy
OrganizationalObjectiveandTotalCompensation.docx

TOTAL COMPENSATION

Figures title: 2

Organizational Objective and Total Compensation

Kristen Cheatham

University of Phoenix

10/26/2019

Organizational Objective and Total Compensation

When it comes to Organizational Objective and Total Compensation they go hand in hand. In a business stand point employers are adopting strategies to develop well designed compensation plans that target achieving organization success through extrinsic and intrinsic rewards. Organization try to control compensation costs, motivating employees and ensuring fairness and equity in compensation by putting strategic compensation plans in place to meet organizational goals. There are Laws and Regulations standards set by the Fair Labor Standards Act that affect compensation programs. Compensation professionals create programs to reward employee monetary and non-monetary compensation based on performance, knowledge, skills, seniority and federal laws. For Federal employees compensation packages are designed to make your career rewarding by offering a wide range of benefits. Compensation professionals tailor compensation and benefit packages to be competitive with other employers in the similar industries.

Laws and regulations that influence total compensation.

There are laws set by federal, state, and local employment and tax laws that impact compensation. There are five major compensation laws that are governed by the

most important laws that impact compensation the Fair Labor Standards Act, "this law establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in federal, state, and local governments" (ofm.wa.gov). Most of the regulations set out in the FLSA impact non-exempt employees but it does not hold true for all employee. The Equal Pay Act of 1963 is an amendment to the Fair Labor Standards Act. “This law protects employees from being paid different compensation wages or salaries based on gender in the same workplace whose jobs are similar. This law however doesn’t influence compensation that rewards employees based on their tenure, merit, performance, and it does not consider non-exempt or exempt status” (referenceforbusiness.com). The United States government also formed laws like the Consumer Credit Protection Act of 1968 protects employee from wage garnishments, The Employee Retirement Income Security Act of 1974 and the OASDHI which form the basis for most benefit programs such as insurance, job security, Medicare/Medicaid, and retirement plans which these benefits play a role in improving the effectiveness of the employee compensation programs. Monetary compensation encourages, motivates, and retain employees to be more productive assets to an organization.

Differences and similarities in Total Compensation in Different Organizations1

When it comes to compensation in different organizations you have to consider the biotech industry vs. other industries. Biotechnology compensation is

References https://corporate.findlaw.com/law-library/stock-based-compensation-in-the-biotech-industry.html#.XbWiD5zaW9U.email https://ofm.wa.gov/state-human-resources/compensation-job-classes/compensation-administration/fair-labor-standards-act-flsa https://www.referenceforbusiness.com/small/Di-Eq/Employee-Compensation.html#ixzz63YdneRj6