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Internal pay structure is the comparison of positions within an organization to ensure fair compensation. It guarantees that employees are paid appropriately relative to their colleagues, which fosters feelings of being valued and can prevent turnover caused by perceived underpayment. Maintaining a fair internal pay structure is vital for improving employee happiness and loyalty. For example, in my current workplace, there are salary disparities among employees within the same department based on tenure. Employees with more than five years of service tend to earn more than recent hires, which I believe is a fair approach because it encourages long-term commitment and rewards experience. Such pay hierarchies promote organizational stability and employee retention by motivating staff to grow within the company.
Regarding job evaluation versus person-based pay plans, I recommend job evaluation as a more effective and sustainable method. Job evaluation concentrates on the responsibilities and duties associated with specific positions, allowing for a standard assessment of worth based on job content rather than individual performance or characteristics. To implement this system, an analysis of each position's duties is conducted, categorizing tasks into core functions such as communication and essential operational activities. This analysis then informs a review process by managers or the HR department to establish appropriate pay levels. Because job evaluation assesses roles independently of individual attributes, it simplifies ongoing management and ensures consistency over time, especially as duties remain relatively stable. Furthermore, it minimizes manipulation and bias, making it a fair and reliable framework for compensation decisions.
On the topic of unlawful employment discrimination, I strongly agree with the EEOC’s efforts to stop and remedy such practices. Discrimination in employment occurs when employers take adverse action against individuals based on attributes such as sex, age, race, disability, religion, or family responsibilities. These acts create a toxic work environment, undermine fairness, and harm affected employees both directly and indirectly through social and organizational feedback effects. Discriminatory practices contribute to systemic inequality, impacting labor market dynamics and leading to significant disparities in earnings among different demographic groups, particularly in the United States (Fair Work, 2015). Eliminating employment discrimination is essential for promoting equitable, inclusive workplaces where all employees have equal opportunities to succeed.
As a significant portion of company leadership—primarily Baby Boomers—approaches retirement, organizations face a leadership vacuum that could threaten operational continuity and strategic direction. To address this challenge, HR departments should proactively develop upcoming leaders by fostering core leadership competencies through targeted training programs and assessments. Utilizing talent identification tools allows firms to recognize high-potential individuals early and plan succession accordingly. It is also beneficial for organizations to involve retiring Baby Boomers as mentors and coaches for younger employees, facilitating the transfer of tacit knowledge and leadership skills. Such mentorship programs not only preserve organizational wisdom but also build a pipeline of capable future leaders, ensuring stability amid generational transitions (Brandon & Amy, 2015). The strategic preparation of leadership succession is crucial for maintaining competitive advantage and organizational resilience in a rapidly changing labor environment.
References
- Brandon, R., & Amy, A. (2015). As Baby Boomers Retire, It's Time to Replenish Talent. Business Journal.
- Fair Work. (2015). Workplace discrimination.
- Mike, K. (2015). Internal pay structure; What is internal equity?
- Dessler, G. (2020). Human Resource Management (16th ed.). Pearson.
- Snape, E., Redman, T., & Bamber, G. (2015). Managing Employment Relations. Routledge.
- Bohlander, G., & Snell, S. (2017). Principles of Human Resource Management. Cengage Learning.
- Cascio, W. F., & Boudreau, J. W. (2016). The Search for Global Competencies: Are We There Yet? Journal of World Business.
- Ulrich, D., Brockbank, W., Johnson, D., Sandholtz, K., & Younger, J. (2012). HR Competencies: Mastery at the Intersection of People and Business. Society for Human Resource Management.
- Wright, P. M., & McMahan, G. C. (2011). Exploring human capital: putting 'human' back into strategic human resource management. Human Resource Management Review.
- Stone, R. J., & Deadrick, D. L. (2015). Challenges and Opportunities Affecting the Future of Human Resource Management. Human Resource Management Review.