compensation 8

Please respond to each student utilizing 2 scholarly sources each and cite sources and required 150 word count each.

Original question-As you consider employee roles in strategic compensation, how can companies explain employees contributions to company profits?

Student 1 Schafer, Amber

Strategic compensation can be a powerful human resources tool to drive behaviors and results for the company. Compensation strategies that emphasize group based incentives can help drive results in the direction desired for the company (Snell, 1994). Employees are quite simply what drive a company. Without employees to carry out the work, there would be no company to exist. To further that, employees which work more efficiently and effectively, therefore contribute more favorably to a company’s bottom line and profitability. Employees are more likely to work efficiently and effectively if they are happy and incentivized to do so (Lawler & Hackman, 1971). It can be difficult for companies to quantify the inputs of employees and their direct correlation to profitability, but it is very easy to see the affects of a lack of productivity. Many companies measure productivity differently, but finding an effective way to measure productivity is an effective way for companies to explain the contribution of employees to the company profits. Quantifying productivity of white collar employees has often been a difficult task for companies (Rowe, 1981). Setting group targets and metrics that show a department’s productivity is a good way for a company to explain the contributions of that particular department to the company profits and by doing so also explains the employees’ contributions. For example, explaining the reduction in late payments achieved by the accounts receivables department, or the negotiation of more favorable vendor payment terms by the purchasing department, are ways to highlight the contributions of the employees of that department that then translate into great profitability for the company.

Student 2-Ladymon, Bradley,

While considering employee roles in strategic compensation, is it important to identify the two terms of employee contributions and company profits and their relationship to each other. Strategic compensation as a technique used by organizations to help in the processes of retaining, growing, and attracting employees while also monitoring their performance and behavior to ensure it is aligned with the organization’s objectives and goals (Veldman, Klingenberg, Gaalman, & Teunter, 2014). Employee contributions ideally would be aligned properly to company profits, however in most cases, especially in our current marketplace the exact opposite occurs, and the employee contributions and company profits are not aligned well at all. A disconnect so to speak between employee contributions and company profits can lead to many issues for organizations such as distrust from the employees, lack of employee motivation, high turnover rate, and many other negative results for an organization (Bonner, J. Greenbaum, & Mayer, 2016). Obviously, for an organization to be successful they need to make profit, however in our current marketplace there is almost a devaluing of the employees, especially by large corporations who in a lot of cases treats the employee as a number and not as an individual like they should be. This type of environment referred can be a very difficult environment to work in and be a part of for most individuals and it causes these employees to be disengaged, and unmotivated due to the employee devaluation that is occurring within an organization (Purdon, 2018). For these reasons it can very difficult for organizations to explain employees’ contributions to company profits. A lot of times what happens is a spin tactic which is handed down by leadership in which the good aspects of the deal are highlighted in detail and the negative ones are vaguely mentioned. I have literally been a part of so many of these types of situations where an organization is sending out a message such as this and the message as always, been the say at least in my case and that is to spin it positively regardless of how bad it has been. It creates such a distrust throughout the organization, but this type of method is used quite frequently in our current marketplace.

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