MGT3045 WK 4 Project

What’s Trending In: Total Rewards and Compensation © 2017 South University

Page 2 of 2

Human Resource Management

©2017 South University

2 What’s Trending In: Total Rewards and Compensation

Compensation Management

WHAT'S TRENDING IN: TOTAL REWARDS AND COMPENSATION Employers should offer the types of compensation that recognize and motivate employees who work hard and contribute to the company's success. Organizations should offer competitive compensation that enables them to attract and retain good workers. Here's what's currently trending in the area of total rewards and compensation: • 1. There are a number of ethical issues related to

compensation. Higher-paid employees can sometimes misbehave, employers can work together to limit pay, and compensation itself can prompt worker greed.

• 2. When pay decisions are viewed as inappropriate or unfair, lawsuits can occur. There is growing concern about litigation targeting the misclassification of employees, overtime pay, and other wage violations.

• 3. Identifying situations that require employers to pay workers for their time is a challenge. Managers should understand the conditions that trigger payment of wages. These include shorter meal and rest breaks, donning required equipment and uniforms, and other work-related activities. In addition, proposed changes in overtime regulations may significantly impact employees and companies.

• 4. Setting reasonable pay to get competent employees is an important component of compensation management. To remain fair and competitive, employers have to use different sources of internal and external salary information to determine how much employees should be making. Some companies are paying employees above the traditional minimum amounts to attract competent workers; some states are even enacting laws that set minimum wage levels higher than the federal wage.