The Importance Of Pay And Equity In Improving Employee Performance In Organizations

Job Factors

Question:

Discuss about the Effective strategy for solving voluntary problem.

Compensation and benefits provided to the employees will help the organizations to increase their growth and productivity. The introduction of pay and equity scale among different level of employees will encourage employees to work and will also increase their level of performance (Bryson, 2017, p. 483-500). Introducing internal pay and equity scale would provide better advantages, as employees in similar job role would be entitled for equal pay and facilities. The paper elaborates on the measures of pay and equity on different level of employees within the same organizational structure. The paper will help to understand the different form of pay and equity structure and how this motivates employees to retain in the organization.

As per the above table, Medical lab technologist II requires highest ability of skill to do his work and accordingly requires a degree. As he is the highest in order, he should have experience of at least several years. He should have a proper mental skill and should have leadership quality to guide others. The Medical Lab Technologist I’s work is almost similar, but they do not need to do more complex jobs and require experience of one year. Executive Assistant indulges in more complex clerical tasks, where several years of experience and leadership quality are required to supervise and train new employees. Administrative Assistant is more into clerical task, and does not require much ability and education and should be minimum grade 12. As per the hierarchical order Draft person II comes in the next order as they are involved into more complex computer aided jobs. Minimum two years experienced required and should have proper mental skill to do their job. Draft person I comes in the next phase, though their job is almost similar, but not much complex like draft person I. Ground worker II occupies the second last position as they require several years of experience to continue their job. Moreover they need to supervise other workers and need minimum education. The last department as per the occupation consist of Ground Worker I, who do not require much ability and supervising quality and accuracy is not basically required.

Effective compensation and benefits of employees will help to promote employee motivation within the organization and thus help to increase the performance level of employees. Ensuring internal equity within the workplace refers employees performing similar kinds of jobs would be entitled to equal amount of pay and other compensation benefits (Schnackenberg & Tomlinson, 2016, p. 1784-1810). In order to implement different types of pay and benefits within the workplace, management needs to adhere to certain rules. The management of the organization should not discriminate among its employees and there should unity among the team.

As per the case studies, in the part of Administrative Assistant, management should look after the kind of work that they fulfilled. Moreover, their work revolves around day-to-day business such as transcribing, typing of assignments and many more. Therefore, in order to provide them with better benefits, providing proper training would be an important merit tool of good pay as per the performance factor. This would help them to improve their performance and can understand the organizations goals and objectives (Anvari, JianFu & Chermahini, 2014, p. 186-190). Another most important equity and pay factor can be introduction of performance based pay related scale. In this case, management will examine the work performance of employees in similar job role, and accordingly would reward the one that performs well in the organization. The score of this employee is 105 on the Job Factor, Degree Rating and Point Chart.

Ability Qualifications and Job Performance

According to the case study, employees of Executive Assistant perform more complicated task, therefore management should provide more benefits and compensation to encourage the employees. As their work is supervised by the senior most clerks or the administrator, therefore it is the duty of the supervisors to provide valuable feedback to the employees in order to encourage them. Proper and clear communication with the employees would benefit the employees as they can earn more incentives (Downes & Choi, 2014, p. 53-66). Furthermore, the job role of Executive Assistant is to train new employees within the University, therefore it is utmost important for the Management to motivate them with rewards and incentives so that they can provide better training to the new staffs. Another factor can be implementing programs such as on spot rewards for the employees, fun activity would compensate the employees and thus this will be cost-effective. The score of this worker is 105 on the Job Factor, Degree Rating and Point Chart.

The job role of the Draft person 1 comprises of mainly computer related job such as using of CADD technology for carrying out various assignment as per the advice of the supervisors. This kind of work is very complex and requires higher level of dedication and motivation. Therefore, management should implement benefits and compensation program, in order to encourage the employees involved in this kind of job (Gupta & Shaw, 2014, p. 1-4). “They work from rough sketches and notes, verbal instructions, and other sources of information.” Prior to this providing transport allowances and medical compensation also comprises a part of pay and equity. Therefore, providing them with better training would give them job satisfaction and thus would help to retain skilled employees within the organization. Furthermore, it would also help them to increase their financial status. The score of this worker is 205 on the Job Factor, Degree Rating and Point Chart.

As per the case study, the job role of draft person II consists of more complicated job role such as drafting of various techniques in order to analyse the assignments. In order to provide them better pay and equity, management should introduce incentives system according to which employees will be entitled to receive extra payments for extra work. Prior to this observing employee focus on work such as timelines and accordingly can provide rewards. The score of this person is 310 on the Job Factor, Degree Rating and Point Chart.

As per the case study, the job role of the grounds worker are not complex but requires more of physical work such as maintaining garden, planting trees and flowers and more (Howard, Turban & Hurley, 2016, p. 3). Though they do not require any formal training, but motivation in the form of bonus will encourage them to carry out their task effectively, as they are mainly responsible for providing better and safe environment. The score of this person is 130 on the Job Factor, Degree Rating and Point Chart.

Employees are mainly responsible for different types of work related to gardening such as working as a ground operator, supervising other employees and more. “Supervise a special work crew engaged in an activity, such as sodding, planting, or pruning is also a part of their job role.” Effective pay and equity scale for these types of employees include providing voucher scheme to the employees, fixed working hours and a good pay. Communication with those workers would also motivate them to perform their work (Belogolovsky & Bamberger, 2014, p. 1706-1733). The score of this person is 305 on the Job Factor, Degree Rating and Point Chart.

Compensation and Benefits for Administrative Assistant

Employees related to this type of work are mainly placed in the medical colleges where they are intended to perform critical task that includes various bacterial test, observing and analysing species and more (Meijerink, Bondarouk& Lepak, 2016, p. 219-240).  Pay and equity system for medical technologist include introducing programs related to health awareness and safety, long and short term fellowship program for the employees who are associated with the organization for more than 3 years. The score of this person is 360 on the Job Factor, Degree Rating and Point Chart.

As per the case study employees in this job role perform more complex and critical work that relates to analysis of diagnostics with the help of manual techniques. As their work is more related to mental stress and focus oriented, therefore motivation and encouragement in the form of equity and benefits are required (Wong et al., 2015, p. 71-90). Management should introduce training session to develop the skills of the employees and transparency level should be there between employees and management. Performance based pay can also help to retain employees within the organization. The score of this person is 565 on the Job Factor, Degree Rating and Point Chart.

Thus, the organisation should provide salary to the employees on the basis of their scores on the Job Factor, Degree Rating and Point Chart. Therefore, a worker with a higher score on the Job Factor, Degree Rating and Point Chart should get more salary than a person with a lower score.

The above table clearly indicates the equity payment which the workers should be getting based on the kind of performance which they give. Therefore, the salary of the Medical Technologist II should be more than Medical Technologist I and so on.

In order to provide better equity and pay benefits to the employees of different hierarchies, it is recommended that the management should provide other modes of pay and equity in order to provide better satisfaction to the employees (Zhang, Long & Zhang, 2015, p. 1378-1397). For instance, organization should introduce incentives to the employees who perform over time. Providing rewards in the form of health insurances and pension plan would help the organization to retain its skilled employees about and this will lower the staff turnover within the workforce. Prior to this management can also introduce different kinds of vouchers such as voucher related to childcare program, paying phone bills by the organization and more. Compensation and benefits thus, would help to provide job satisfaction to the employees and in result will increase the productivity and growth of the organization.

The above report concludes on the topic that every organization should introduce benefits and compensation measures in order to increase the growth and productivity of the organization. The rate of payment among employees of similar job should be fair and appropriate. Different form of rewards based on monetary and non-monetary schemes would encourage and motivate employees that will result in better performance. With the introduction of better compensation strategy, organizations and universities can retain more employees and as a result this would motivate employees to work.

References

Anvari, R., JianFu, Z., & Chermahini, S. H. (2014). Effective strategy for solving voluntary turnover problem among employees. Procedia-Social and Behavioral Sciences, 129, 186-190.

Belogolovsky, E., & Bamberger, P. A. (2014). Signaling in secret: Pay for performance and the incentive and sorting effects of pay secrecy. Academy of Management Journal, 57(6), 1706-1733.

Bryson, A. (2017). Pay equity after the Equality Act 2010: does sexual orientation still matter?. Work, employment and society, 31(3), 483-500.

Downes, P. E., & Choi, D. (2014). Employee reactions to pay dispersion: A typology of existing research. Human Resource Management Review, 24(1), 53-66.

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.

Howard, L. W., Turban, D. B., & Hurley, S. K. (2016). Cooperating teams and competing reward strategies: Incentives for team performance and firm productivity. Journal of Behavioral and Applied Management, 3(3).

Meijerink, J. G., Bondarouk, T., & Lepak, D. P. (2016). Employees as active consumers of HRM: Linking employees’ HRM competences with their perceptions of HRM service value. Human resource management, 55(2), 219-240.

Schnackenberg, A. K., & Tomlinson, E. C. (2016). Organizational transparency: A new perspective on managing trust in organization-stakeholder relationships. Journal of Management, 42(7), 1784-1810.

Wong, Y. T., Wong, Y. W., & Wong, C. S. (2015). An integrative model of turnover intention: Antecedents and their effects on employee performance in Chinese joint ventures. Journal of Chinese Human Resource Management, 6(1), 71-90.

Zhang, Y., Long, L., & Zhang, J. (2015). Pay for performance and employee creativity: the importance of procedural justice and willingness to take risks. Management Decision, 53(7), 1378-1397.

Order an Essay Now & Get These Features For Free:

Turnitin Report

Formatting

Title Page

Citation

Outline

Place an Order