(1)Whatcan an organization do to ensure that merit pay and other incentivesare administered fairly?
Toensure that merit pay is fairly administered, there are a few tipsthat should guide the organization. They include
Focusingon quality rather than quantity is a fair way of administering meritpay. Rewarding employees for indefinable outcome like customersatisfaction will enhance service delivery.
Itis also important to ensure that merit pay program is based onindividual effort as opposed to group output (Cassidy & Kreitner,2009). When merit pay is focused on group output, hardworking andefficient employees feel that they are unfairly evaluated with theefforts of poor performers.
Meritpay should concentrate on strong workers and high performers whogenuinely deserve this pay, rather than giving these pays toobviously underperforming or weak employees. When a company does notreward weak performers just for their loyalty, it encourages suchworkers to improve on their performance or look for opportunitieselsewhere. On the other hand, strong performers continue enhancingtheir performance if rewarded fairly.
Finally,it is important to choose criteria on giving merit pay. A valueshould be attached to each criterion including seniority,communication skills, customer satisfaction, tangible output,professionalism as well as attitude.
Inaddition, it is advisable for an organization to ensure that pay isharmonized with the rest of the industry and that it is in line withthe relevant federal legislations. This will help the company remainsafe from scrutiny from both the authorities and employees. Fair payensures employee motivation and should thus be emphasized.
Whatkind of data would you gather to ensure that the pay-for-performancesystem is not biased in favor of any particular group?
Tohave an effective and unbiased pay-for performance system, it isimportant to have the necessary measure of performance. Performancecan be assessed through collecting data on customer satisfaction andoutput (O’kane, 2007). In addition, it is important to trainemployees to enhance their skills and capabilities at work, so as toadminister pay-for-performance plan.
Wouldlinking pay to objective criteria that are important to theorganization, such as quality control measures, profitability, andlow turnover, help or hurt in administering pay?
Administeringpay can be well achieved if linked to objective criteria. Companiescan be able to control pay or establish effective pay to theiremployees by linking pay to objective criteria. When an organizationoffers pay in terms of profitability of the company, it helps inmotivating employees to work hard, improve performance, achieve highcustomer satisfaction, low turnover and ultimately maximize profits(O’kane, 2007). In the end, linking pay to objective criteriaensures pay is fair and acceptable by employees.(2)Why are employers implementing policies that require employees toadopt healthier lifestyles?
Healthand wellness has become an increasingly important aspect for everyemployer. Employers are now establishing health and wellnessinitiatives so as to ensure their employees as well as their familiesstay healthy. This trend has been facilitated by the increase inlifestyle related diseases. By doing so, employers are able to keeptheir employees highly productive throughout the year. Besides highproductivity, healthy employees take very minimal sick leaves, whichcost the company a significant amount of money. Employers have alsorealized that healthy employees translate to low job turnover(Cassidy & Kreitner, 2009). This is important t the employer ascompanies spend much of their resources in recruitment, training andreplacing employees who have left their job to seek another job forhealth reasons. In addition, the rising cost of health insurancethreatens the profitability of companies, as companies are requiredto offer health cover benefits to their employees. By encouraginghealthy lifestyles, employees get sick less often spend less inhospitals, saving the company from spending heavily on their health(Cassidy & Kreitner, 2009). Thus, employers are able to save bigby promoting healthy lifestyles among its employees and theirfamilies.
Cassidy,C. & Kreitner, B. (2009). Supervision:Setting people up for success.New York: Cengage Learning.
O’kaneE.M. (2007). Performance based measures: The early results are in.Journalof Managed Care Pharmacy, 13(2),3-6.