what are the key legal issues in managing employee compensation and benefits? course hero

How do you handle employee compensation issues properly?

HR departments have progressively evolved over the years to expand their roles and include responsibilities such as managing employee compensation and benefits. As businesses continue to grow and develop, it’s important to understand how the benefits enrollment process affects HR managers, and what problems they may be facing to become more ...

Why is compensation important in the workplace?

Compensation and Employees' Benefits Compensation package is normally presented in three major categories. First, it can be non monetary such that the value intangible. Such compensation comprise of social as well as career rewards expressed as growth opportunity , subsidized housing, enhanced job security, flexible working hours, recognition, and elder care among others.

What are the benefits of completing the compensation management course?

Apr 25, 2014 · Managing Employee Benefits: 3 Critical Issues to Consider. The time is right for middle market executives to assess the administration of their benefits systems and to ensure optimal function for employees while also advancing the firm's strategic goals. With nearly all of the plan regulations and reporting requirements of the Affordable Care ...

What is included in the Compensation module?

Key Issues In Benefits Planning, Design, and Administration • Planning and designing benefits – Establish plan objectives (what do you want to achieve?) – Ensure external competitiveness (competitive with competitors' benefits package) – Ensure adequacy of benefits (benefits are adequate; e.g. healthcare benefit is expensive, if we do not contain, employees might feel …

Why is HR important?

In order to increase employee engagement and retention, HR professionals are responsible for educating employees on what benefits are available and what packages provide the best options for them and their families.

What is HR professional?

As an HR professional, you are both an advocate for the organization and the employees. You are the middle man between upper-level management and entry-level workers. It is your job to make sure the business hires and retains top talent at a cost that is manageable and increases your company’s bottom line.#N#With that being said, it is hard to make unbiased employment decisions when you have access to so much employee information (e.g., health records, performance reports, etc.). For example, if an employee is costing you a significant amount of money in health issues and is also underperforming, you might reconsider their future with the company.

What is HR department?

Traditionally, HR departments handle recruitment, workplace safety, employee relations, labor law compliance, payroll, training and employee engagement. With an already highly-utilized team, employers are challenged to add the time-consuming tasks of managing progressive benefit strategies, exacting budgetary processes, and staying compliant with the evolving healthcare legislation. Employers face countless challenges around their benefits from employee education to enrollment to administration.

Compensation and Benefits Role

The compensation and benefits processes introduce the transparency into Human Resources and rewarding employees for the achieved performance. The compensation and benefits provides the managers with the compensation tools to build a difference among employees as the high performance corporate culture can be built in the organization.

Compensation and Benefits Responsibilities

The compensation and benefits department is usually responsible for the transparency in the compensation practices in the organization and keeping the internal fairness of the total cash.

Why do companies use compensation?

Most companies use compensation to help build, motivate and retain a strong, innovative and productive workforce. The ongoing challenge is to balance employee perception while allowing for differentiation of pay across the workforce. Perceived compensation equity among employees.

What happens if an employee believes they are underpaid?

If an employee believes they are underpaid, they will typically react by reducing their effort or performance. This may result in, for example, increased absenteeism and sick leave, tardiness, unmet deadlines, excessive work breaks, lack of focus or even a resignation.

Why is it important to have a lean budget?

It is important during these times to ensure that employees understand the reasons for the cuts and the plan to turn the situation around.

What is the ultimate goal of lean budget?

The ultimate goal is to dedicate enough money to motivate the desired results without paying too much or, worse, motivating the wrong results. A lean budget and compensation issues. This balancing act is even more challenging when faced with a lean budget and resources for compensation are limited.

What is talent management?

Talent management: Compensation issues and your employees. Compensation is one of the most complex disciplines in the field of talent management, or human resources. Handling employee compensation issues properly requires knowledge of: Employment trends.

Is compensation satisfaction a function of the amount received?

A common belief is that an employee’s compensation satisfaction would be a function of the amount received—i.e., the higher the compensation rate, the greater the satisfaction. However, the situation is not that simple. In fact, the reality is that the amount of pay matters less than its perceived fairness or equity.