DISCUSSION BOARD 5 2
Discussion Board
This chapter (Epilogue) discusses five important issues that will shape compensation
professionals’ work for years to come. Briefly explain why these issues can become so
influential. Finally, which one of these issues stands to create the greatest uncertainty for
compensation professionals? Explain.
The five issues that can impact the future compensation levels for the market include
increasing the minimum wage, compensation productivity gap, performance appraisals, pay
transparency, and gender gap. All of these factors are important in determining the salary for any
profession. Each issue should be carefully examined, and an establishment should work with the
HR department to implement strategies to find solutions. The following problems may only
partially be resolved, but there are ways to decrease the impact of each one.
The first issue that will create uncertainty and shape the future professional compensation
for the market would be an increase in the federal minimum wage. The minimum wage can be
explained as the minimum amount that an employer can offer that is required by the government.
The sharp minimum wage increases in the United States in the coming years will shape the types
of jobs held by low-skilled workers and create employment challenges for some of them (Lordan
& Neumark, 2017, p. 40). To some, increasing the minimum wage could hurt the economy due
to supply and demand. Raising the minimum wage could also raise the prices of goods and
services to offset the high labor cost. Since the price of goods and services will rise, the
consumer purchasing power will be decreased, and people will buy less. This could then lead to
layoffs. Many researchers argue that increasing the minimum wage will negatively impact the
U.S. economy (Martocchio, 2020, p.361). This is a complicated topic; on the one hand, the
DISCUSSION BOARD 5 3
minimum wage is not meant to be lived on, but on the other, sometimes this is the only pay
someone is qualified to receive.
The second issue that could impact compensation is the compensation productivity gap.
An increase in productivity can signify the growth in an establishment's investments in
information technology and capital equipment. Capital equipment could include a lab, new
facilities, and sales centers. Information technology comprises databases with expert information
to help users to make decisions in any setting. When productivity increases, so do investments.
This can then lead to additional employment openings.
The third factor for compensation to be impacted is performance appraisals. These review
an individual's performance, completion of tasks, and overall growth. A lot of establishments
incorporate their compensation strategies into how an employee performs. This can lead to the
gender pay gap, the next issue. According to Galatians 3:28, God informs us, "There is neither
Jew nor Greek, there is neither bond nor free, there is neither male nor female: for ye are all one
in Christ Jesus" (King James Bible, 1769/2017). Businesses should consider the skills and
experience, not the sex of a person, but this will likely remain an issue for years to come. There
are significant variations in gender gaps across countries (Morsey, 2020, p.12). This can impact
both men and women. This can lead to pay transparency. An employee may be instructed how
the pay is set; however, most individuals will not speak up on the first day about the opposite
gender making more than them. They may also need to find out how long the other employee has
been at the company. Just because the other employee is the opposite gender does not mean they
make more money because of it. They could be good at their job and have been with the
company for a long time.
DISCUSSION BOARD 5 4
References
King James Bible. (2017). Cambridge University Press. (Original work published 1769) King
James Bible. (2017).
Lordan,DG., & Neumark,DD. (2018). People versus machines: The impact of minimum wages on
Automatable jobs. Labor Economics, 52, 40-53.Dhttps://doi.org/10.3386/w23667
Martocchio,DJ.DJ. (2020).DStrategic compensation: A human resource management
approachD(10thDed.). Pearson.
Morsy,DH. (2020). Access to finance – Mind the gender gap.DThe Quarterly Review of Economics
and Finance,D78, 12-21.Dhttps://doi.org/10.1016/j.qref.2020.02.005
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