According to the Wall Street Journal (2016), companies often vary in the way they remunerate their employees due to different company policies. However, what is common to the companies is the variation in the salary offered to women in comparison to men for the same job description and qualifications. Decisions to set the salaries at a particular limit that arrived at based on factors like the competitiveness of the worker and advice from external auditors is slowly losing popularity. Companies are now engaging the employees in salary negotiations, using the employee’s previous salary to determine the remuneration and strictly paying based on the roles rather than the gender of the employee.
According to acknowledged Human resource experts, the initial step in determining the amount of salaries to offer is to create a wage philosophy which enables the employees to comprehend the company’s goals and vision. The averaging of the data collected on salaries from different businesses and using it to set the wages for a particular organization may not be the best alternative since jobs titles cannot always be compared. Experts on Human resource have come up with a new formula for determining salaries to pay the employee. In this case, employees are given particular numbers to describe the difficulty and responsibilities of the job then a few points are added or subtracted to the number based on the performance, the constant arrived at is used to come up with their salary.
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In conclusion, companies can quickly determine how much to pay each employee based on their performance, but other factors like labor union policies, the economic state, and market trends have to be taken into consideration. Setting remunerations is both an art and science with a lot of complexity and controversy. From the article, fairways to set compensation have been suggested. However, the author does not give a stand on precisely which method to use. Further, the author does not suggest the pros and cons of each of the ways so as to enable the reader make a comparison and conclude which is the best way to pay workers.
References
Wall Street Journal. (2016). what is the best way to pay workers? Wsj.com. Retrieved from
http://www.wsj.com/articles/what-is-the-best-way-to-pay-workers-1470150553?tesla=y
