Explain the discrepancy in pay among the current employees, management homework help

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Business Finance

Description

You were hired to work as a HR Consultant for a small local hospital, with the task of expanding the workforce of certified medical assistants. Looking at the current three employees, you find a discrepancy in compensation between Susi, a 2-year employee at $28,000, Tom, 5-year employee at $27,000, and Raul, a 10-year employee at $33,000. All are employed as certified medical assistants, yet they all make different amounts of money. According to survey data, all three employees are below the market rate for this job in the local job market. All three employees are also exemplary employees with near perfect scores in their most recent performance evaluation.

Write a 700- to 1,050-word paper that includes the following:

  • Explain the discrepancy in pay among the current employees.
  • Describe the strategy you would take to correct the internal equity issue.
  • Describe the strategy you would take to correct the external equity issue.
  • Explain how you will ensure that new hires will be paid equitably both internally and externally.
  • Explain how an organization's Total Compensation strategy affects an organization's financial operations and its ability to attract, motivate, and retain top talent.

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Explanation & Answer

Kindly find the answer in the attached document

Surname 1
Institution
Instructor
Date
Equity in Compensation
The discrepancies in the local hospital are very much evident. To begin with all employees are
certified, that is to say they have similar qualifications, but differ in the work-term duration in the
local hospital. One would expect to find that the one with the longest service time receives the
highest pay, and that the pay is directly proportional to the service term length. However, Susi,
who has two years working there receives a salary of $28,000 compared to Tom who has five
years working there but receives $1,000 less than Susi. In addition, their compensation does not
follow the standard market rates in that they are very lowly paid when compared to the current
market rate. This is in spite of them having performed very well in their most previous
performance appraisal. A good performing employee is kept not only at par with the market rates
but way above it (Armstrong & Duncan, 2001).
In ensuring fair compensation internally, I would need to settle on beyond any doubt that all
work choices with respect to salaries, raises,...


Anonymous
Very useful material for studying!

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