Compensation programs are constantly evolving to attract top talent and motivate employees. Current trends include focusing on performance evaluations, total rewards packages, and incentive plans aligned with company goals. Challenges include designing equitable programs and restoring fairness perceptions after past injustices. Leading companies offer competitive pay plus benefits like free meals and flexible schedules to engage employees. Ongoing research aims to improve compensation decision-making and support fair treatment.

1. S
COMPENSATION: EQUITY
AND JUSTICE ASSESS
CURRENT COMPENSATION
TRENDS
COURTNEY CAVALL HRM7002-8 WK 3
INSTRUCTOR: LAURA POGUE , DM

2. PAY, COMPENSATION, & DESIGN
• Base pay. Compensation in the form of cash creates the base pay.
• Base pay tends to be comparable throughout the corporate market, along with total
compensation packages that tend to follow the same standard offering package as
those in similar jobs markets (Milkovich−Newman, 2004).
• Total cash. base pay plus bonus (Milkovich−Newman, 2004)
• Total compensation. Is the compensation provided to the employee that reflects the
employees overall value and worth. Employees compensation is provided from the
company through cash, stock, benefit packages. etc., value and worth of employee is
measured through expertise, years of experience, professional skill level at which
work is performed (Milkovich−Newman, 2004).

3. PAY, COMPENSATION, DESIGN & COMPENSATION TRENDS
• Compensation Compensation: determined and managed.
• Compensation symbolizes pay to employees and the expenditure to the employer (ERI,
2014).
• Compensation is a term applied to describe several payment options or methods such as
actual money or a non-financial rewards and benefits types (ERI, 2014).
Compensation Design
• Compensation programs shells a wide assortment of considerations.
• Variable pay or fixed pay
• Total rewards has been used as a tool to employed communicate worth of employees

4. Booth, J. E., Park, K., & Glomb, T. M. (2009) on compensation equality and changes;
Changing procedures to avoid injustices in the future that would affect other people.
The majority of justice studies have concentrated in the viewpoint of victims, more current research has been
valuing the perspective of onlookers or witnesses and discrepancies in perspectives. This gives a more
through investigation.
Research allows for problem identification and problem solving for fair treatment in the future and new
implementation of sympathetic investigate strategies to reach fair and equal workplace rules and
enforcement.
Sympathetic investigate can create different remedies including different procedural changes such as degrees
of compensation and apologies from direct and indirect sources
COMPENSATION: EQUITY AND JUSTICE

5. CASE STUDY
Benefits and Compensation Roadmap,
(2014, pp. 28-31).
Acme Scenic & Display in Portland, Oregon, revamped there compensation program in In 2011. Bruce Farnsworth,
the company's chief operating officer, wanted to implement a different compensation including raises after a
three-year pay restriction. The company did not have a formalized plan to give employees incentives within
benefits or salary programs. Farnsworth attended a workshop on implementation of internal employee
information and external industry data to generate a proper compensation and benefits program, after the
workshop he started transforming his own companies programs.
The COO focus on job classes, then categorizing job description for each job position. He used a salary profile
database company called PayScale Inc. to find corresponding jobs connected to his industry to set salary
standards, then created a three-tiered set salary range from the number on the PayScale Inc. In 2012 he launched
his new program and suggested he had instant results form the formal structure. He rolled the program out in
2012, and saw immediate results. Farnsworth suggested that a key factor was communication to employees.

6. Practical Implications: Barnes, Reb, & Ang, (2012), research suggested some
important practical implications of compensation.
• Prior conceptualizations on performance were lacking a complete idea, and need to include performance trends in modifications.
• Managers who decide on compensation decisions should be informed on variables, which influence the decision-making process.
• The decisions managers make today projecting performance trends will impact and affect future (Barnes, Reb, & Ang, 2012).
• Compensation policies tend to influence employee performance and employee behaviors (Barnes, Reb, & Ang, 2012).
• Projections that are overly weighted in optimistic view may inflate compensation for employees who start out with improvements
initially (Barnes, Reb, & Ang, 2012).
• If organizations reward performance trends there may be unintentionally support their employees to artificially drop their performance,
there needs to be specified agendas which encourage future improvements for employees (Barnes, Reb, & Ang, 2012).
• Examination of policies and employees behavior patterns is needed so that they are in line with what the organization desires them to be
(Barnes, Reb, & Ang, 2012).
EXAMINING THE INFLUENCE OF PERFORMANCE
DYNAMICS ON COMPENSATION DECISIONS

7. EMPLOYER-SUPPORTED VOLUNTEERING BENEFITS
Booth, Park, & Glomb (2009)
Article on Employer-Supported Volunteering Benefits
S The employer needs to establish alliances with multiple volunteer
organizations in order to give employees experiences which are
enriching and diverse for the majority population of employees
S Advantageous
S Integrative relationships are to the volunteer organization
S Prescreened employees
S Indirect human capital investment for employees
*VolunteerMatch. (2014)

8. FINANCIAL HEALTHCARE POSITIONS SURVEYASSESSMENT TRENDS
HFMA 2009 survey provided an overview from the past two years of compensation trends for CFOs, PFS managers,
compensation trends for CFOs, PFS managers (Compensation Trends in Turbulent Times, 2009).
• Valid compensation expansion for CFOs the lowest streak in a 30 years according to the history of the survey
• Bonus payouts today are lower than two years ago, and
• CFO tenure decreased by 25% percent.
• Compensation grew slower compared to the past for upper management which is a positive for middle manager.
Ceridian highlighted trends in a new infographic, presenting five key developments ahead in HR and new trends to watch for
(Dunivan, 2014).
• More employee development
• Better recruiting technology
• A focus on financial wellness
• Moving past the survey and into feedback from regular employee interviews and digital communications.
• Health care reform ahead, provision of the ACA, employers want HCM solution to keep them in compliance in order to avoid
fines.
COMPENSATION TRENDS:

9. “COMPENSATION PROGRAMS ARE
CONSTANTLY EVOLVING” (ROSEMA, 2014)
Examines compensation trends for financial
(Compensation Trends in Turbulent Times, 2009).
• Job label
• Education achievement
• Achievement of certification
• Number of years in job position
• Years in he Gender
• Geographic area
• Organization nature, size, and net revenue of
patients
• Locations based on separate versus systems
• Dulebohn, & Werling, (2007) Change Factors
Encompassed
• Globalization
• Trade liberalization
• The move to manufacturing into information
and a service-based economy
Union decrease
Production moving overseas
Technology advancements
Changes in organizational assembly
reductions in size
• Modifications to production approaches

10. TOOL: 1
SALARY.COM AT HTTP://WWW.SALARY.COM/CATEGORY/SALARY/
• To assist with the design of salary packages Salary.com Salary provides detailed information on a wide array of job salaries.
Its important to create compensation programs that
• Offer a competitive advantage in the global economy
• Support totally the strategic programs and action of the organization
• Pay policy line that reflects external pay policy,
TOOL:
2CBIZ: HTTP://WWW.CBIZ.COM/BENEFITS#STHASH.W4J4FY57.DPUF
Specializes in creating corporate benefits program to contributes to profitability by:
• Strategic planning
• Technology
• Effective communication
• Proactive service
TOOLS: COMPENSATION PROGRAMS

11. MOST IMPORTANT TRENDS AND TECHNIQUES IN COMPENSATION
PRACTICE TODAY WHY ARE THESE CHALLENGES TODAY?

12. • As business look into the future they must make critical decisions for sustainability considering functional programs for
compensation, which effectively align salary with the companies purposes (Connell, Rosenstein, & Martino, 2010).
• Focused on Performance evaluations and Total reward compensation packages (Connell, et. al., 2010).
• Incentive design plans that integrate risk, provide incentive for behavior consistency with employees that aligns with the
corporate goals (Connell, et. al. , 2010).
• Incentive design plans are based on attracting top talent and motivating employee behavior to align with corporate goals,
making sure people are motivated to complete there job functions and continue to grow with the company (Connell, et. al.,
2010).
• Focused on goals and re-evaluating the present-day plan structure (Connell, et. al., 2010).
• Monetary compensation has changed in its procedure and their needs to be adjustments to restore the fairness of perception of
injustice (Booth, J. E., Park, K., & Glomb, 2009).
COMPENSATION PROGRAMS:
PREPARING MANAGERS FOR FUTURE

13. Entis, L. (2014). The 5Best Companies for Employee
Compensation and Benefits. Entrepreneur Media, Inc
1) Google: unrestricted free food, reflexologies, offsite
expeditions, and a flexible schedule, great work
environment
2) Costco: health and dental insurance plan, 401k, paid
vacation, paid holidays and paid sick time for both part
time and full time employees
3) Facebook: onsite healthcare, chiropractor and
acupuncture, three free meals a day, snacks, CalTrain
passes, and regular team happy hours.
4) Adobe: pay is equal or better equitable to other
comparative companies, pet insurance, impressive
vacation policy.
5) Epic Systems: weekend voyages, hotel and airline
opinions

14. Barnes, C. M., Reb, J., & Ang, D. (2012). More than just the mean: Moving to a dynamic view of performance-based compensation.
Benefits and Compensation Roadmap. (2014). Workforce, 93(9), 28-31.
Booth, J. E., Park, K., & Glomb, T. M. (2009). Employer-supported volunteering benefits: Gift exchange among employers, employees,
and volunteer organizations.
Connell, P., Rosenstein, W., & Martino, M. (2010). The Changing Landscape of Incentive Plan Design. Secured Lender, 66(6), 28-31.
Compensation Trends in Turbulent Times. (2009). hfm (Healthcare Financial Management), 63(8), HFMA1-HFMA8. =
Dulebohn, J. H., & Werling, S. E. (2007). Compensation research past, present, and future. Human Resource Management Review, 17
(The Status of Theory and Research in Human Resource Management: Where Have We Been and Where Should We Go
From Here?), 191-207. doi:10.1016/j.hrmr.2007.03.002
Heathfield, S. (2014) Salary and Compensation Trends for Forward Thinking Organizations Salary and Worker Compensation Thinking:
Shift Underway, pp., 1-2.
Miller, S. (2013). Pay Trends for 2014: Salary Increases Hold Steady Employers still cautious with their salary budgets, and tougher with
performance ratings.
Polk, M. A., & Rodda, D. (2014). Variations on 'Conventional' Compensation Themes. NACD Directorship, 40(5), 82. Shelton, T. (2008).
Global Compensation Strategies: Managing and Administering Split Pay for an Expatriate Workforce. Compensation &
Benefits Review, 40(1), 56-60. doi:10.1177/08863687073122
VolunteerMatch. (2014). Retrieved December 26, 2014 at http://uwgc.volunteermatch.org/index.jsp?zip=45202
RESOURCES