Various Compensation Methods

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This paper will discuss the various compensation methods and benefits programs organizations bestow on their employees. Salary and benefit administration strategies will be related to organizational culture and performance and what companies offer their employees to entice them to accept employment and what companies do not offer their employees and still remain unscathed during today's turbulent times.

Various Compensation Methods and Benefit Programs

Abstract
This paper will discuss the various compensation methods and benefits programs organizations bestow on their employees. Salary and benefit administration strategies will be related to organizational culture and performance and what companies offer their employees to entice them to accept employment and what companies do not offer their employees and still remain unscathed during today's turbulent times.

Companies in General
"Globalization, outsourcing, movement from manufacturing to a service economy, and sluggish economic growth have all affected employee compensation over the past five years, said Robert Skladany, a principal at Wellesley Consulting, who spoke at the Connecticut Business and Industry Association's 2006 Compensation and Benefits Symposium." (Grzybowski 2008)

Well said and true. Today's compensation is significantly different from days ago when employees received merit raises for a job well done and most employees stayed with one company throughout his or her entire career. Today's workforce is no longer loyal to one employer because the employer is generally not loyal to the employee. Every year Fortune Magazine publishes a list of the best companies to work for. The list is impressive, but with a higher list of companies not to work for, the employer has the advantage. (Fortune 2008)

Organizational Culture
Many of today's organizations have extremely compensated CEOs. These CEOs received compensation and benefits in excess of an employee's lifetime salary. But it is these CEOs who run the operation; make crucial decisions; adhere to board requests; work in excess of 12 hours per day to keep the workforce a workforce. The public sometimes does not see this and the culture can look tainted. Corporate executives know salaries must be kept minimal. This knowledge lets companies offer benefits that will lure exceptional workers and not crush budgets. The compensation ...