Compensation Human Resources Administrator

Compensation:Human Resources Administrator

Compensation:Human Resources Administrator

Interestingitems in the report

Thereported generated from the payscale.com has two major items that canhelp companies in establishing effective pay structures. The firstinteresting item is the compensation influences that includeexperience and skills of employees. The report indicates howdifferences in levels of skills and experience make a difference inthe amount of salary that an employee gets. For example, an employeewith less than six years of experience earn about $ 90,000 annually,while an employee with 20 years of experience earn about $ 130,000per year (Payscale, 2015). Therefore, a company that is consideringestablishing a pay structure should integrate the skills as well asthe level of experience of each employee. This can be achieved byconducting experience and skills audit of each employee. Employeeswith a high level of experience and skills should get a highercompensation than those with lower levels of experience and skills.

Thesecond item that is interesting in the report is the significance oflocation as a determinant of the level of compensation. The reportindicates that, besides the level of skills and experience, employersconsider the location from which employees deliver their services.This implies that employees working from different locations arecompensated differently. From the report, an employee working in NewYork earns about $ 101,090, while an employee at a similar jobposition working in the White Plains earns $ 100,242, those inBrooklyn earns $ 93,533, Emersion earns $ 96,982, and Yonkers earn $97,636 (Payscale, 2015). This means that a company that isestablishing compensation should consider multiple factors, one ofthem being the location of the employee. The company should analyzedifferent characteristics (such as the cost of living and marketcompetitive rates in those locations) of a given location.

Payincreases

Assumingthat the employer uses a skill-based compensation system, thecompensation of a human resource administrator should be increaseddepending on the skills that an employee has gained in a given fieldof profession. The level skills that the employee has gained can bemeasured in different ways, such as the number of years that theemployee has been working in a given field and the increase inperformance over time. Performance is the most appropriatedeterminant of additional skills that the employee has gained overtime. Therefore, the employer should increase the compensation basedon changes in the employee’s performance. This means that, althoughan employee may have worked in a given field for many years, thelevel of compensation should not be increased if there is no changein the level of performance.

Amotivating compensation structure of a human resources administratorshould be diverse and address all factors that inspire employees. Thebasic salary should be market competitive, which means that it shouldbe equal to or slightly higher than the salary earned by employeesworking in the same field and with an equal level of skills(Obringer, 2015). An employer should also give a bonus pay that iscommensurate with the employee’s performance. A bonus pay, unlikethe basic salary, motivated employees to make an additionalcontribution above what is expected of them. Therefore, a bonus payincreases the productivity of employees, which in turn benefits boththe employer and the employee. The bonus should serve as the majorincentive for employees to work harder and feel motivated. Moreover,the employer should give non-financial benefits (such as compensatedleaves) to employees. Basically, an appropriate compensationstructure should be comprised of the basic pay, bonus, financial andnon-financial benefits.

References

Obringer,L. (2015). How employee compensation works. InforSpace LLC.Retrieved June 25, 2015, fromhttp://money.howstuffworks.com/benefits1.htm

Payscale(2015). Your PayScale report. PayScale.Retrieved June 25, 2015, from http://www.payscale.com/