Discuss and explain the challenges when determining compensation and benefits for flexible and/or contingent employees. Include in your discussion the advantages and disadvantages of telecommuting. In your discussion include the concept of total compensation, how compensation and benefit systems are used by organizations to attract and retain qualified, skilled. employees. Solution Flexible or contingent workers includes temporary employees, part-time employees, independent contract workers, consultants, seasonal employees, and interns whereas full-time and permanent employees are the core employees of the organization. Determining compensation and benefits for flexible employees is difficult because of the following reasons: 1. Compensation structure should be such that it should help to retain talent 2. It should be aligned to the core employees but it is difficult to align the goals, productivity, commitment, etc. of core employees vs the flexible / contingent employees 3. These employees generally work from home or from a distant location and it is difficult to keep a track of their work and therefore, communication through channels such as phones, video conferencing, emails, instant messengers becomes important.

1. Discuss and explain the challenges when determining compensation and benefits for flexible
and/or contingent employees. Include in your discussion the advantages and disadvantages of
telecommuting. In your discussion include the concept of total compensation, how compensation
and benefit systems are used by organizations to attract and retain qualified, skilled. employees.
Solution
Flexible or contingent workers includes temporary employees, part-time employees, independent
contract workers, consultants, seasonal employees, and interns whereas full-time and permanent
employees are the core employees of the organization.
Determining compensation and benefits for flexible employees is difficult because of the
following reasons:
1. Compensation structure should be such that it should help to retain talent
2. It should be aligned to the core employees but it is difficult to align the goals, productivity,
commitment, etc. of core employees vs the flexible / contingent employees
3. These employees generally work from home or from a distant location and it is difficult to
keep a track of their work and therefore, communication through channels such as phones, video
conferencing, emails, instant messengers becomes important