EMPLOYEE COMPENSATION AND BENEFITS 3
Question1: Employee Compensation and Benefits
Employeecompensation and benefits are the payments and non-monetary benefitsentitled to employees as part of their remuneration for the servicesthey offer to an organization. Employee compensation refers to thepayment that employees are remunerated within return to the valuethey give to the employer organization (Peter& Adrian, 2003).The employee compensation plans are largely based on salary andwages. Salaries are paid to the permanent employees and are mostlydone on a monthly basis while wages are paid to casual employees. Atthe same time, employee benefits entails all the monetary andnon-monetary gains that are associated with remuneration of theemployees in addition to the salary or wage remuneration.
Inthe organization that I worked with, I enjoyed a number of employeecompensation and benefits as an administrative clerk. These benefitsare based on the quantity of job done and the time spent in theorganization. Since the company is a small company, the humanresource manager gives full salary and full employee remuneration tothe permanent employees. They enjoy retirement benefits, healthinsurance, social security payments and personal entertainmentallowances(Peter& Adrian, 2003).However,I worked as a part time employee on internship. Therefore, I was paidhalf the salary of full clerical employees.
Inaddition, I also worked as a marketer as a personal choice to do anextra job. Therefore, I was paid commissions and bonuses for everynew customer I brought to the company. This was purely based onquantity, and was not guaranteed as it was considered an extraservice. The salary I was paid at the firm was the most important tome (Hayton, 2012). This is because it was the official and formallyrecognized remuneration package I received at the company. While thecommissions were good and paid on time, they were not part of my jobdescription at the company.
Question2: Employer benefits to employees
Employersoffer benefits to employees so that they can get value for the workthey do for organizations and to elevate their social and economicstatus to make them more effective. However, there aregovernment-mandated benefits that are entitled to employees fromtheir employers. The government-mandated benefits have positiveeffects on the employees as well as the organization. One of theeffects of the government-mandated benefits is increased remunerationfor employees as part of their final pay. This is because thegovernment requires employers to include such payments in the benefitpackage of the employees (Flynn et al, 2006). Moreover, employeesgain through the access to the social and health services that theemployer is able to pay for them through the mandated of thegovernment.
Onthe other hand, government-mandated benefits have a positive impacton the organization as their compliance will promote their publicimage. According to Balsa (2014), organizations are consideredresponsible if they adhere to government and industry regulations interms of treatment of the employees. However, the government-mandatedbenefits have a negative effect on the employers because of the costfactor. The costs included in the government-mandated benefits risethe costs of employing workers for the employer (Flynn et al, 2006).As a result, the cost of hiring and maintaining employees isincreased. Therefore, if the government was taken out of theequation, employers would either reduce or scrap out thegovernment-mandated benefits from the employees’ payroll. Thisshows the importance of the government in the process of the faircompensation and remuneration of the employees.
Balsa,G. (2014). Mandated BenefitsCompliance Guide 2015. New York:Aspen Publishers
Hayton,J. (2012). Human Resource ManagementCasebook. London: Taylor &Francis Group
Flynn,W., Mathis, R.L., & Jackson, J. (2006). HumanResource Management.Stamford:CengageLearning
PeterA., & Adrian W. (2003). UnderstandingWork and Employment: Industrial Relations inTransition.Oxford University Press