Compensation Management

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4 Pages in length. Please see the attached supporting papers A-C.

All i need this week is a Summary, the Recommendations, and the conclusion needed to conclude the project.

Since you will have researched the current compensation system in parts A - C, your final course project will be a plan that outlines your recommendations for each of the discussed elements (e.g. structure, benefits, etc.). For example, perhaps through your unit research you have discovered that your selected organization has some incredible variances in pay. You would include in your final project the suggested changes that you would recommend. These suggestions need to be supported with scholarly research. This is a great opportunity to evaluate the costs of compensation, compensation management, the different classifications of the workforce, etc.

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Running head: MILITARY COMPENSATION Waylon Magobotha Military Compensation Compensation Management Park University 1 2 MILITARY COMPENSATION Developing and giving the suitable military compensation sets comprising wages, health care, reenlistment additions, retirement, vacation, dependent reimbursements, and survivor reimbursements is essential to attract and preserve active obligation and reserve staffs with necessary skills. RAND has carried out general research to guide representatives on developing compensation preferences to entice and maintain military personnel able to meet the strategic objectives of a country (Carter & Kidder, 2015). Basic pay is a vital part of the military compensation structure, along with the easiest component to comprehend, but it encompasses only around half of the total yearly compensation for most facility members. Additionally to basic pay, provision members can get Hostile Fire/Forthcoming Danger Pay, and a range of other exceptional and inducement payments (Carter & Kidder, 2015). For instance, service associates obtain inducement to pay for being a pilot or working at sea. Moreover, they obtain a Basic Allowance for Subsistence to fund their food expenses. Individuals that live off-base receive a Basic Allowance for Housing, which caters for 100 percent of their accommodation expenses, accustomed for the confined living cost (Wallace et al., 2015). The pay gauge begins low, but service affiliates’ pay rapidly rises as they become more experienced and are supported out of the most subordinate positions. For both recruited service members and constables, fixed military pay is around twice as much like that of noncombatants with similar education and knowledge (Maldon et al., 2015). Nevertheless, captains are remunerated much more up to double as much as recruited provision members with comparable years of work. Although this pay distinction made sense for a military with profession majors 3 MILITARY COMPENSATION and recruited registered militaries, it does not imitate the genuineness of the experienced recruited soldiers who make up today’s all-volunteer power (Harrison, 2012). Military Compensation comprises Cash Reimbursement and Considerable Retirement and Health Paybacks. Of DoD’s $150 billion appeals for payment in 2013, above $90 billion would be for the basic pay, foodstuff and accommodation payments, extras, and several sorts of distinctive pay. Additional $16 billion would be for accumulation expenditures that represent the upcoming annuities of existing service members who will withdraw from the military. In 2012, DoD salaried 34 cents for every dollar of rudimentary pay for lively workers and 24 cents for every dollar of basic pay for backup staffs. The balance of DoD’s appeal for reimbursement in the last past years approximately $40 billion would stand for health reimbursements. However 1.4 million military staffs work on vigorous calling, a total of approximately 10 million individuals are qualified for martial health benefits (Wallace et al., 2015). Additionally to active-duty martial workers, the individuals who have contact to health welfares comprise entitled family members of those staffs, discharged armed staffs and their entitled family members, fighters of facility members who passed on while on active calling, and some associates of the assets and National Sentry (Harrison, 2012). DoD’s entreaty comprises funding for TRICARE which is the services health care platform for contemporary and particular aged service followers (Maldon et al., 2015). Besides, the sector makes addition outlays for the forthcoming health care of present service affiliates and their partners who will withdraw from the military and come to be qualified for Medicare particularly at age 65. 4 MILITARY COMPENSATION All service associates on active duty get consistent military reimbursement, around 60 percent of which is basic salary. Heights of basic salary, which are brought out in the basic fee board, rely on rank and years of work (Redmond et al., 2015). The lowermost wage grade is E1, for individuals with the rank of reserve in the Army or Marine Forces, seaman trainee in the Navy, or airman rudimentary in the Air Force. The uppermost registered salary grade is E-9, which comprises the ranks of sergeant officer or command sergeant captain in the Military, sergeant officer or chief gunnery officer in the Marine Forces, a master chief trivial captain in the Navy, and main major sergeant in the Air Force (Wallace et al., 2015). In 2006, most of the recruited force was in pay ratings between E-3 (a secluded first class in the Military, for instance) and E-6 (a Military personnel sergeant, for example). Cash salary is consistent martial reimbursements which are a basic fee, grants for housing and maintenance, and the tax benefit that rises because those grants are not drained. Noncash and delayed cash remuneration contain the accrued price of veterans’ advantages and retirement benefits. Compensation in the United States military can as well be sedated in various means. One of the most common is that description entails of the basic pay, housing and maintenance grants, and related tax benefits to which every service member is eligible. DoD has employed that systematic military reimbursement as a central portion of military pay ever since at least 1962. The other one is more comprehensive where the amount of martial payment contains noncash and delayed cash advantages (Harrison, 2012). They can include health care for present-day service affiliates and their relatives, the health care and other troupers’ advantages that affiliates can obtain once they retire, and withdrawal pay and health advantages for associates who work for at least 20 years or get extremely disabled (Maldon et al., 2015). 5 MILITARY COMPENSATION Military staffs and their families are also entitled to supported child care and foodstuffs, the usage of physical aptness and entertaining amenities, free lawful and fiscal therapy, and other family-sustenance platforms (Redmond et al., 2015). Lastly, even within the limits of virtuously cash reimbursement, service members can get special salaries, bonuses, as well as payments that are not calculated. Distinctive and spur wages are typically presented for specific abilities or risky duty, counting disposition and war (Carter & Kidder, 2015). Associates might also receive bonus costs when they reenlist for numerous more years, particularly if they have work-related abilities that are in short amount. The kinds of health plans that personnel have and the quantity they wage for those plans vary considerably between the martial and noncombatant segments. Like the soldierly, closely all big national managers presented health care advantages to their employees’ years back but unlike the martial; just around one-third presented such advantages to their pensioners. Of the citizen employees who contributed in a medical plan, around 20 percent were registered in a health upkeep association. After years of kicking the matter, Congress has embraced numerous reform endorsements in the House Armed Services Committee’s account of this year’s protection approval bill, plus a key alteration to the withdrawal structure that would entail DOD to subsidize to a 401(k)-style strategy for each facility associate. This is a good beginning, but much more rests to be completed. The military salary, health care, and departure structures require being reorganized to meet the requirements of the present force while making certain that they will upkeep the supple impending force that America national security will need. The actual problem is whether Congress will uphold the administrative drive to act. 6 MILITARY COMPENSATION References Carter, P., & Kidder, K. (2015). Military Compensation and Retirement Modernization: A Primer. Center for a New American Security. Harrison, T. (2012). Rebalancing military compensation: An evidence-based approach. Center for Strategic and Budgetary Assessments. Maldon Jr, A., Pressler, L. L., Buyer, S. E., Zakheim, D. S., Higgins, M. R., Chiarelli, P. W., ... & Carney, C. P. (2015). Report of the Military Compensation and Retirement Modernization Commission. MILITARY COMPENSATION AND RETIREMENT MODERNIZATION COMMISSION ARLINGTON VA. Redmond, S. A., Wilcox, S. L., Campbell, S., Kim, A., Finney, K., Barr, K., & Hassan, A. M. (2015). A brief introduction to the military workplace culture. Work, 50(1), 9-20. Wallace, R. A., Colarusso, M. J., Hall, A. O., Lyle, D. S., & Walker, M. S. (2015). Paid to Perform: Aligning Total Military Compensation With Talent Management. Volume 8. ARMY WAR COLLEGE CARLISLE BARRACKS PA STRATEGIC STUDIES INSTITUTE. Running head: MILITARY COMPENSATION Waylon Magobotha Military Compensation - Special Groups Compensation Management Park University 1 MILITARY COMPENSATION 2 There is a need for ensuring that the military compensation system aligns with the fundamental principles that comprise its theory. The approach should reflect consistency as well as basic concepts of the country. The aim of designing the compensation is to foster professionalism in the army for ensuring that it is a respected, honored, and dignified career. According to the Army ranking system, a major general will be a two-star general. Such an officer will hold an O-8 rank that is almost near the top of the pay scale of the military (Offenhauer, 2007). The major generals that engage in active duty are entitled to additional compensation to carter for their cost of living in addition to the basic salary per month. There are variations in the pay levels within the O-8 rank according to seniority. Although it is difficult for an individual to enter the Army as a major general, the starting basic pay of officers that fall under the O-8 rank and have less than two years of service is $10,398.60 per month. This pay increases gradually as the officer gains experience in the position over time. When the officer has served for more than 20 years in the post, the compensation will increase to $13,925.10. The pay of a major general continues to rise until he serves for more than 34 years where it plateaus at $14,991.00 per month. The general rule is that the major generals of a similar level of service belong to the same standardized pay system. Besides the basic pay, major generals receive different incentive pay and allowances. For instance, the objective of the housing allowance is to subsidize the housing needs of the generals during deployment. However, this allowance varies depending on the location. The generals that belong to O-7 pay grade are not eligible to receive a basic housing allowance. When a major general serves in an active combat zone, they receive hazard pay of about $150 when they find themselves in a hazardous situation. The pay of a major general is subject to two major limitations. First, the second level of Federal Executive Schedule caps any officer within the rank between O-7 and O-10 for MILITARY COMPENSATION 3 compensation that does not exceed $14,975.10 per month. Secondly, any major general serving in the combat zone, the only pay that qualifies for tax exemption is the first $7,738.80. However, there is a possibility of excluding the $225 in the monthly hazard pay. Each major general has access to the benefits package of the National Army including employer-sponsored vacation, military pension plans, and health insurance. The basis of the pension of the major general is on the highest-paid years which continue over the life of the officer after retirement. The major general should have served in the military service for at least 20 years. Every U.S.A military branch has elite officers commonly referred to as the Special Forces. In the army, this group is the Green Berets. When an officer reaches the level of Green Beret is not only an honor but also results in additional benefits and pay. Just as the other professions, there are variations in the Green Beret officers’ salary according to their title and rank. Generally, the average basic pay for a Green Beret officer is $70,000. Compared to other general Army Soldiers, the pay for the Green Beret is more than double of their counterparts (U.S. Army, 2018). Becoming an active duty officer increases your earnings hence there is an increase in the salary as you transition from a soldier to either sergeant or lieutenant. There is an opportunity of earning an additional income such as $75 and $400 monthly special duty pay for putting in more effort as well as $50 to $150 hardship allowance for the officers across all ranks. The Army Special Forces refer to a collection of officers with specialized training for completing specific global missions such as reconnaissance missions and counter-terrorism among others (Robinson et al., 2018). The average pay for such officers is subject to the ranking and service years in the Army in addition to the bonuses that depend on the assigned mission. The special force captain knows specific field thus his years of experience makes him eligible for a particular task. The years of service determines the salary scale of Special Forces captain. For instance, those MILITARY COMPENSATION 4 having less than two years of service in the position earn $4,143.90 as per the data from the 2018 Army Pay Chart (U.S. Army, 2018). The special force warrant officer is responsible for the coordination of duties of the 12-man operational detachment with the captain as the group split into six-man teams for the easier accomplishment of the objectives of the mission. It is possible to categorize a warrant officer among the five pay scales according to years of service and the rank (Myers & Boudreau, 2011). A warrant officer with the level of W-1 and has provided service for not more than two years earns $3,037.50 monthly compensation while the warrant officer with a ranking of W-5 having more than 20 years of experience earns $7,614.60 per month. The master sergeant’s earnings that have less than eight years in the service each month is $3,845.10. In most circumstances, the Army Special Forces work in challenging environments that negatively impact on different aspects of their lives. Therefore, the army compensates these soldiers through the payment of bonuses depending on the parameters of the mission, extra responsibility, and risk. The payment range for the special duty is from $75 to $450 in addition to their basic pay. The hardship allowance of officers that spends more than 30 days in conditions poorer than USA ranges between $50 and $150 per month. Moreover, the army pays an additional bonus of $1,000 to active duty soldiers with proficiency in foreign languages since their skills and capabilities apply to the satisfaction of the parameters of the mission. Also, navigators, pilots, and aviators qualify for the Career Enlisted Flyer Incentive Pay from the Army. The army officers in aviation services during their careers are eligible for pay compensation between $125 and $840 monthly. The Officer aviators that continue with active duty after the end of their initial service commitment earn up to $12,000 additional pay each year. Enlisted divers are eligible to an extra maximum salary of $340 monthly whereas officers receive $240 with the aim of offsetting the duty sea hardships. For officers to become eligible to receive sea pay, they MILITARY COMPENSATION 5 must have undertaken a shipboard assignment for more than three years. The Enlisted Soldiers can reach E-4 pay grade without considering the time they have spent at sea. From the above research, it is evident that the pay grades for the U.S Military officers depend on their ranks and number of years in the service (Poston et al., 2015). The soldiers with similar ranks receive the same basic salary in spite of the job they do. Some of the tasks could be dangerous or require additional efforts, thus the office that performs these duties are eligible to a further bonus on their base compensation. For instance, an enlisted officer in the Special Forces with an experience of less than two years receives similar base pay as his counterparts with the same ranks and experiences. However, the eligibility for additional bonuses such as the hardship allowances, sea pay, foreign language proficiency pay, flight pay, and special duty pay can add up to more than $1000 each month. MILITARY COMPENSATION 6 References Myers, R. C., & Boudreau, T. M. (2011). Charging toward an even brighter future. Army Signal Center and Fort Gordon GA. Offenhauer, P. (2007, December). General and flag officer authorizations for the active and reserve components: a comparative and historical analysis. Washington, DC: Library of Congress. Poston, W. S., Haddock, C. K., Jahnke, S. A., Hyder, M. L., & Jitnarin, N. (2015). A content analysis of military commander messages about tobacco and other health issues in military installation newspapers: what do military commanders say about tobacco? Military medicine, 180(6), 708-717 Robinson, L., Long, A., Jackson, K., & Orrie, R. (2018). Improving the Understanding of Special Operations: A Case History Analysis (No. RR-2026-A). RAND Santa Monica United States. U.S. Army. (2018, October 12). Military Compensation: Total Military Pay & Benefits. Retrieved from https://www.goarmy.com/benefits/total-compensation.html Running head: MILITARY COMPENSATION MANAGEMENT Waylon Magobotha Military Compensation – Pay-For-Performance Compensation Management Park University MILITARY COMPENSATION MANAGEMENT 2 Military compensation touches on various aspects which include the wages they are given as well as the benefits. The benefits include dependent reimbursements, reenlistment additions, survivor reimbursement, vacation, health care, vacation and retirement among others. Compensation is meant to ensure that members of the military feel that they are paid for the services that they offer (Maldon et al., 2015). They are also meant to improve on their morale with respect to the duties that they are normally given. As a result, an effective military compensation system bears the chance to boost the ability of the military force to provide high-quality services. There is, therefore, the need to conduct an analysis of the current state of the compensation system and address pay-for-performance and benefits. The pay-for-performance military compensation system is based on recognizing the input that military personnel normally offer in their services. Pay-for-performance entails assessing the specific skills that the military personnel bring to service as well as the targets that they meet while doing their job. The plan was suggested by the Department of Defense (DoD) as a way of dealing with the incessant complaints regarding pay inequalities that were raging on (Wallace et al., 2015). Therefore, the process of performance appraisal would clearly establish the military personnel who needed to be paid more than others, by how much and by what extent. The action needs to be done in a manner that is credible and fair. Through the process, other members of the military are likely to gain the confidence that their interests have been taken into great consideration. Such members are also likely to put in great efforts with respect to ensuring that they perform in a manner that relates to meeting the specific targets that have been placed for them. The inception of the pay-for-performance in the 2010 financial year meant that the DoD would put more actions in ensuring that the various personnel would attain the chance to offer the appropriate capacity to deliver on the specific duties that they are given (Gilbert, 2016). For MILITARY COMPENSATION MANAGEMENT 3 instance, it is imperative with respect to ensuring that military personnel are provided with the appropriate training, mentoring and counseling. The personnel, therefore, identify more with the situation in which they are and seek to engage more in practices that boost upon their better performance levels. While the pay-per-performance system is effective, it is much complex and less likely to create total satisfaction with various stakeholders when not well-implemented. Its effectiveness in application requires proper communication between the leaders and the military personnel (Bianchi, 2016). The situation will offer the military leaders on the specific gaps shown in the plan and, therefore, seek to bridge them. The move will also be imperative with respect to building upon the motivation levels that military personnel held in the different duties that they are given. There are various individual benefits that members of the military normally receive in regards to the services that they offer to the body. For instance, there are special pays that are given in line with more unique services offered. One of them is the Hostile Fire/Imminent Danger Pay (Cancian, 2015). The pay is offered to military officers who have been given more specialized training to work in environments that are particularly more dangerous owing to the hostile conditions that they offer. An instance relates to military officers who are pilots or those who work at sea. They need to be given more financial benefits to complement the unique circumstances that they work under. Some of the group benefits contained within the individual and group benefits are basic allowance for subsistence and basic allowance for housing. The allowances are meant to ensure that military personnel bear the chance to access both food and housing simultaneously (Bianchi, 2016). The move is important with regard to increasing the willingness of the military officers to continue providing their services, owing to the general value that is put upon them. MILITARY COMPENSATION MANAGEMENT 4 Some of the legally mandated compensation systems in the military include the healthcare and retirement benefits. The DoD normally offers healthcare to its military officers through the TRICARE plan. The plan ensures that both the members in service as well as their dependents have the chance to access healthcare without having to provide any premiums or giving any copayments (Gilbert, 2016). The plan is effective, especially when compared to the one offered within the private sector. In the private sector, it normally costs employees an average of $16,834 every years in the amount of money that they provide as premiums. The application of the healthcare plan in the military ensures that they attain the best healthcare without necessarily having to pay much for it. The application of the retirement benefits is still weak, especially given the fact that only service members who are in active duty for at least 20 years become eligible to be given a considerable amount of pension immediately they leave service. Those personnel who provide their services in the military for less than 20 years, on the other hand, are not eligible to receive any retirement benefits. Therefore, the retirement plan is unequal and highly expensive. The situation means that about 83% of military personnel who provide their services do not get the chance to earn any pension. It is an all-or-nothing arrangement that only favor those who give too much of their time to military service. While the military is doing well in terms of providing the pay-for-performance arrangement, it needs to do more in terms of making the appropriate arrangements in determining the appropriate personnel who need to be paid more, especially owing to the specific skills and talents that they normally offer (Cancian, 2015). Better measures also need to be applied in regards to the retirement benefits that members of the military get to obtain. The 20 years’ minimum years of service established to make one eligible for pension is high. It shows that most of the military MILITARY COMPENSATION MANAGEMENT 5 personnel fail to get the chance to lead better lives once they leave the military. For the most art, they are less likely to have nothing much to show for the services that they offered. Where the time limit is reduced to 10 years, it is more likely to create desirable benefits to military personnel. The current military compensation system applied is applied only that various actions can be taken to make it better. For instance, where the pay-for-performance arrangement has been deemed to be effective, more actions need to be applied with respect to ensuring that the most appropriate persons are enlisted for a higher pay. The move will help to boost the morale of military personnel. There also needs to be a change within the retirement plan in a bid to ensure that most people who provide service qualify for pension. MILITARY COMPENSATION MANAGEMENT 6 References Bianchi, S. C. P. (2016). Compensation as a consequence of environmental damage caused by military activities arising from unlawful invasion: How to design a multilevel legal framework?. Journal of Social Sciences and Humanities at West Point, 1. Cancian, M. F. (2015). The Impact of Rising Compensation Costs on Force Structure. Joint Force Quarterly, 79, 79. Gilbert, E. (2016). From Declassified Documents to Redacted Files: Tracing Military Compensation. In The Routledge Companion to Military Research Methods (pp. 50-63). Routledge. Maldon Jr, A., Pressler, L. L., Buyer, S. E., Zakheim, D. S., Higgins, M. R., Chiarelli, P. W., ... & Carney, C. P. (2015). Report of the Military Compensation and Retirement Modernization Commission. Military Compensation and Retirement Modernization Commission Arlington VA. Wallace, R. A., Colarusso, M. J., Hall, A. O., Lyle, D. S., & Walker, M. S. (2015). Paid to Perform: Aligning Total Military Compensation With Talent Management. Volume 8. Army War College Carlisle Barracks PA Strategic Studies Institute.
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Introduction
Body
Conclusion
Reference


Running head: COMPENSATION MANAGEMENT

Compensation Management: Case of the Military
Student Name:
Institutional Affiliation

COMPENSATION MANAGEMENT

2
Compensation Management

Introduction
Compensation is a strategy used widely to attract and retain qualified staff in many
organizations. Military compensation in the same vein aims at attracting persons to serve in the
military to secure the security needs of the country. Above average compensations give
organizations a dignified preference as a place to work and serve. Compensation takes many
forms namely; wages, allowances, healthcare, vacations and pension. The following is a
summary of Military compensation, special groups and performance-based pay.
Military Compensation
The military compensation is aimed at enticing and maintaining highly qualified
personnel to fulfill the strategic security objective of the United States (Carter & Kidder, 2015).
The security needs of a country changes with the environment. The future geared toward more
technologically based resources calling for highly qualified military personnel. Depending on the
role and risk involved compensation benefits attached to risk are hostile fire allowances, rank
benefits depend on the level of an individual in the service. The military personnel benefit from
food allowance, accommodation benefit, and paid vacations. There are attempts by the Senate
committee to try and increase fairness in pay structure in the military according to the House
Armed Services Committee that is reviewing the protection appraisal bill (US Army, 2015).
Special Groups
The military service has specialized groups that add weight and effectiveness in the service. The
military officials referred to as generals that engage in strategy, planning and execution have
ranks from O-1 rank to O-8 Rank the high...


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