Week 4 Discussion

Compensation Challenges for the HR Professional

The HR professional will encounter many challenges with globalization, changes in laws, economic conditions, and the leaders’ desire to maintain the competitive advantage. Peruse the following topics for more information:

Raising federal minimum wage rate and strengthening overtime pay protections: There are discussions on the national stage over the possibility of raising federal minimum wage rates and strengthening overtime protections. While such changes are welcome news to a large segment of labor force, there are possible consequences, such as companies’ reduction in staf�ng levels to offset higher compensation costs.

Rising wages in China: Many US companies relocated manufacturing operations from the United States to China because of lower labor costs. In recent years, wages have been rising in China, and this trend is leading some US companies to consider returning business operations to the United States. There are a number of factors contributing to the rise in wages, including the Chinese governments’ attempts to increase domestic consumption.

Underemployment and the compensation-productivity gap: Underemployment and the compensation-productivity gap have led to a mismatch in job quali�cations and job requirements as well as in the compensation levels not increasing commensurately with labor force productivity.

Workforce diversity: Workforce diversity requires employers to consider the needs and preferences of employees while selecting options to include in the bene�ts program. In doing so, companies must ensure the inclusion of relevant bene�t choices for the entire workforce.

Five Things Every HR Professional Needs to Do to

Succeed Review each tab to learn more.

Leadership development

Compensation

Enhance knowledge

HR and organizational effectiveness

Understand the leaders’ vision and HR role in helping the organization maintain the competitive

Get a seat at the C-suite table

advantage.

Take on a leadership role.

Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach, read the following chapter:

Challenges Facing Compensation Professionals

From the South University Online Library, read the following articles:

U.S. Department of Labor Final Rule Raises Minimum Wage for Federal Contract Workers. Employee Relations Law Journal (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=bth&AN=100606622&site=eds-live)

Should Congress Increase the Federal Minimum Wage and Index It to In�ation? (Cover story) (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=a9h&AN=87088148&site=eds-live)

China under Attack (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp? sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx? direct=true&db=bth&AN=95541327&site=eds-live)

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