Learning Journal Week Four Essay

1098 words - 5 pages

The chapters for week four were interesting to me because compensation, both financial and nonfinancial, and safety are important to me in the workplace. Until this class, I had only every considered these topics from the view of the employee, not the employer. I have learned that it is important to look at the issues from both standpoints in order to get a clear picture of the issues. This week I chose several subtopics within these chapters that are the most profound to me. These include determinants of direct financial compensation, nonfinancial compensation, and the benefits of health and safety.
When it comes to compensation, human resource managers have their hands full. Determining how much to pay for each job consists of looking at several different factors. These factors include the job, the organization, the employee, and the labor market. When looking at the job, the human resource manager will look at a job analysis, description, and evaluation to help set the wage. They will also look at the organization in terms of its compensation policies, organizational level, and its ability to pay. Human resource managers must also look at the employee. This includes the employees performance, skills, competencies, seniority, experience, organization membership, potential, political influence, and luck. They can also look at the labor market using compensation surveys, expediency, cost of living, labor unions, the economy, and related legislation (Mondy & Noe, 2012).
According to the American Speech-Language-Hearing Association (2013) “the single most important factor influencing an individual's rate of pay is the kind of work performed” (p. 1). However, a job is only worth what the market will bear. Some knowledge, skills, and credentials can be in high demand while others are low. The U.S. Bureau of Labor Statistics (BLS) monitors the supply and demand for more than 800 occupations (Amerigan Speech-Language-Hearing Association, 2013). This led me to look up a purchasing agent on the BLS to see where my position stands in terms of compensation and demand. In 2012, the mean salary for a purchasing agent in Michigan was $62,660 with 2.99 people per 1,000 employed in purchasing. It further broke it down to regions and the Northeast Lower Peninsula of Michigan nonmetropolitan area is much lower. The mean salary in our area was $43,520 with 1.23 per 1,000 people employed in purchasing (U.S. Bureau of Labor Statistics, 2013). This helped me to understand how my organization chose my salary.
There is more to a job than just the salary. Nonfinancial benefits can also play a significant role in choosing a job. Nonfinancial benefits include the job, the job environment, and workplace flexibility. These factors of a job can provide a greater work-life balance for employees. Considering the job itself as a form of nonfinancial compensation looks at the value of the job and whether it is meaningful, satisfying, and provides recognition and...

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