2D. Why Not One Big (Happy) Family?
So basically what we are really talking about here is whether each employee in the company must be evaluated on the similar payment structure which means that each employee of the firm belongs to a single family. Well, this approach has been used by various firms in Japan and United Stated, but such an approach also includes serious errors and questions by employees. Can you really have a same payment structure for a labor class and an executive class of employee in your firm?
Well, you can try building one but it is never undergo fruitful results and benefits for the firm. It is important to understand the senility of each employee and their role in the company. If an employee is hired on an executive position with responsibilities to handle the targeted sales field job, they must be paid extra incentives and bonus when they complete their targets. In addition to the same, they are the driving force that must be paid for over time. But for an employee who took a sick day and spent an extra hour the next day in the office, however, might not be eligible for over time.
What employers and employee need to understand here is that every job and title is unique. A senior manager leading sales team might be working outside the office at office hours and thus, are offered better flexible timings and options than those in an administration department. Considering the role and responsibilities of job, the payment structure of each department differs and must be unique in their pattern.
An administrative job might not require an extra shift, but the employers must be flexible for over time in special cases. And if the payment structure does single handed for each employee and department, the structure will directly affect the potential business in return. And introducing one big family in a firm might lead to disputes and claims that employers might not be prepared for. The flexibility and leverage in employment must be difference and unique for each job role assigned to an employee.
CEO of the firm will enjoy better benefits and leveraged than an employee on the executive position. The reason is served by a simple logic of difference in skills and experience of two individuals. It might reflect that following single stated payment structure might resolve complexity in the payment administration department, but it might lead to dirty little office politics which will create heavy disputed in the organization. And thus, sub grouping and grouping within an organization is an essential agenda to undertake. Single handed payment structure might look like an effective measure to decrease the inequity among the employees, but it will create heavy difference in the near future. Every employee is different as per their class of skills and knowledge and combining every segment of the same is not a justified solution to the entire organization.
Links of Previous Main Topic:-
- Equality the legal framework
- Equal opportunities and diversity
- Grievance and discipline
- Strategic aspects of payment
- Job evaluation
- Salary structures
- Ladders and steps
- The self financing increment principle
- Why not one big happy family
Links of Next HR Management Topics:-