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.
Explanation & Answer
Running Head: COMPENSATION EVALUATION
Employee pay discrimination is a serious issue in the organization that may attract legal
issue if not addressed in the organization. Although there may be some legitimate reasons for
employee discrimination within the organization, this may not always be the case. Employees
that perform same job duties with similar qualifications and job functions should be subjected to
equal pay within the organization (Gupta & Shaw, 2014). In many cases, human resource
managers keep wage and salary private, and this may make the issue of pay discrimination
unknown to many employees within the organization. Many employers also tend to argue that
level of education, qualification for the job and experience are important factors that may
warrant pay disparity within the organization, but this is always not the case as some employees
are subjected to different pay structure although they have same qualification and experience
required for that particular job (Gupta & S...