In this text, i identify the total compensation plan for an organization focused on external equity as well as a total compensation plan for an organization focused on external equity.
The advantages of internal equity in a compensation plan by neil kokemuller the americans with disabilities act protects disabled workers from unfair labor practices. Total compensation plan for an organization focused on internal equity internal and external equity comparison hrm/324 02/11/2013 internal and external equity comparison compensation packages are one of the most valuable pieces of the puzzle when an organization creates a program designed to attract and retain suitable employees.
This paper will identify the various advantages as well as disadvantages of internal and external equity for the organizations and conclude by explaining how each plan supports the organizations total compensation objective as well as the relationship of the organization’s financial situation to its plan internal and external equity comparison internal alignment is also called internal equity. Internal pay equity exists when employees in an organization perceive that they are being rewarded fairly according to the relative value of their jobs within an organization perceived inequity or unfairness, either external or internal, can result in low morale and loss of organizational effectiveness.
Pensation structures this focus on external equity enables a ,company to develop compensation structures and programs that are competitive with other companies in appropriate labor markets perceptions of equity can also influence a company's abil ity to attract, retain, and motivate its employees.
Step 2 – conduct an internal analysis of your pay practices now is the time to turn the focus on your current compensation system and search hard for any possible problem areas, such as internal pay differences you can’t explain let technology help.
Internal and external equity comparison hrm / 324 recruitment, retention and reduction of staff turnover are some of the key things that many organizations focus on when they begin to put together the “fundamental glue” of the company, the compensation plan.