discrepancy in payment
Most of the organizations, when hiring they look at the best-qualified candidate with the necessary skill plus anything else that can add value to the organization pay for that. Employees expect the employer to honor the contract document. The education, expertise, total work experience, and performance are some of the determinants of the remuneration package the employees will take home. The above mention factor is the significant cause of the discrepancy in payments. In other words, an employee with a higher level of education and a wide range of experience will always earn more than those with a higher level of expertise but with low or no work experience at all. On skills, an employee with higher power needed by the organization will always get better pay than those with lowly desired skills. Variation in payment is still there, depending on the categorization done by the organization despite the similarity in position.
Although discrepancy in payment is justifiable, they require internal equity. It refers to fairness while dealing with employee’s compensation mechanisms in an organization. To ensure the necessary balance the first strategy has a working experience review mechanism where the is a regular check on whether an employee’s compensation scale matches the experience earned with time. Then there is a need to eliminate or ensure that there is no any biasness while in the whole process. The discrepancies should only in justifiable factors like education level and skill; hence discrimination of any kind should be avoided by the top management. Then there should be a mechanism to help employees who are unable to negotiate well for their salaries. This can be archived by setting up an organization’s internal pay scale that defines all the allowances and any other compensation. The pay scale should be clear and understandable by all the employees. Finally, there should be a growth mechanism developed to ensure that no particular employee stagnates in one position for a long time since skills earned with time provision for growth in both remuneration and leadership at the workplace should be in place.
External equity issues arise when there is a comparison of what different organizations pay at the same level of employment. In other words, it a mechanism to ensure salary competitiveness in the job market. To provide external equity, the first strategy is analyzing market data to establish competitiveness in the job market. Regular performing the above analysis ensures that organizations are up to date with the current information on job market trends and make the comparison hence can never fail to reward employees fairly. Secondly, it is important to regularly meet the employees and make them understand the organization’s position, the reasons for the decisions, and the performance indicators the organization evaluates to arrive at their conclusion.
To ensure that new hires re paid equitably, start before the hiring is done. There must be a budget for the same hence the first thing I will do is to ensure that the organization has funds or has proper plans to ensure that new hires are compensated fairly. The second aspect is hiring internally through appointments and leadership mentorship programs. Internal workers tend to understand the organization’s challenges and culture, which generally will boost success. Having a viable pay scale is another critical measure that ensures there is no discrimination, and everyone is protected while bargaining during their hiring. Finally, I would ensure that the proper ranking and valuation of the position are done with a keep comparison of what the market offers. This goes hand with checking on what value the new hire brings to the organization.
Total pay includes inclusion overtime pays, premium payments for an extra job done, and any other suitable payments depending on the degree of certainty that the employees earn it. The purpose of such additional rewarding is to attract employees, ensure they are well trained, and motivate them to be more productive. When productivity is optimized, it implies that the organization gains financially since then it has undoubtedly delivered to its potential client in time and quality. Total compensation helps in sorting out all the challenges target along with unfairness and equity, help reduce conflicts, and promotes good leadership.