Compensation plan for a fulltime employee
Introduction
HRM compensation refers to the return of work that an employee is acquainted to. Thereby, it may be in terms of payments, bonuses, sale commission, profit sharing as well as overtime pays. A compensation confines non-monetary perks which are vital in human resource management because it aids to employees encouragement and useful improvement of the organization. The U.S. labor department does not cover oversight compensation for the state workers’ compensation program. This essay aims at evaluating how much a full-time employee should be rewarded, minimum wage, and the response of FHH to the minimum wage in different states compared to Midwestern states about the U.S. labor department.
Compensation plan for a fulltime employee
According to the labor department, the compensation plan to any employee should be in accordance with the federal labor standard act as confined by legislative law in each state. State minimum wage prevails in those states where it is higher than the federal minimum wage. Employer Costs for Employee Compensation, (2019) points out that the employee compensation cost is averaged at $36.61 hourly, wages and salaries $25.14 hourly amounting to 68.6% of the costs, benefits and costs $11.48. Don't use plagiarised sources.Get your custom essay just from $11/page
The minimum wage from the federal state differs from that of Midwestern states because the federal labor wage, hourly, and state cut off particular occupations as well as industries from minimum labor standards covering fulltime employment. Each sets its minimum compensation rate or even exempting them before employee’s measures like seniority, training, or even new signing, unlike their counterparts who set higher wage rates. Therefore the merge in compensation rate is brought about by the state’s approach to its set laws and employee services provision.
Employees’ benefits should be met through the increase to minimum wages irrespective of the worker’s occupation. Fair Labour Standards Act (FLSA) provides regular payments with overtime pay to both private and public employment. The FHH should aim at achieving this reward benefits to workers as an increase to the wage rate; the benefits include; fixed salary, variable pay averaged to $1.03 hourly of 2.8% of total compensation, Paid leave should amount to $2.64 regularly or 7.2 % of full payment. Insurance cover in terms of both short and long term disability averaged at $3.19hourly or 8.7% of total compensation. Retirement and saving (both short and long term incentives) should amount to $1.94 hourly or 5.3% of the compensation plan. Acceptable required rewards should average to $2.68 hourly, which is equivalent to 7.3% of the compensation plan.
In conclusion, other than salary and benefits consideration, FHH should consider other factors for productive organizational prosperity and employee motivation. The components include workplace and health safety, staff and employee union, and employee benefits security as well as employee protection.
REFERENCES
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News release bureau of labor statistics U.S. department of labor: Employer costs for employee compensation, (June 2019). Retrieved from https://www.bls.gov/news.release/pdf/ecec.pdf accessed on November, 22/2019
Rodman, S. O., Barry, C. L., Clayton, M. L., Frattaroli, S., Neff, R. A., & Rutkow, L. (2016). Agricultural exceptionalism at the state level: Characterization of wage and hour laws for U.S. farmworkers. Journal of Agriculture, Food Systems, and Community Development, 6(2), 89-110. Retrieved from https://www.dol.gov/general/aboutdol/majorlaws accessed on November, 22/2019
Society for Human Resource Management (SHRM). (2017). 2017 employee benefits: Remaining competitive in a challenging talent marketplace [PDF]. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and surveys/Documents/2017%20Employee%20Benefits%20Report.pdf accessed on November, 22/2019
U.S. Department of Labour, Wage and Hour Division. (n.d.). Minimum wage laws in the states. Retrieved from https://www.dol.gov/whd/minwage/america.htm