Part 2: Fair And Adequate Compensation Is Critical Fo 295341

Part 2fair And Adequate Compensation Is Critical For Attracting The Mo

Part 2 fair and adequate compensation is critical for attracting the most qualified employees and retaining and motivating staff. When determining compensation, consideration should be given to fair and equitable compensation among all workers in the same company (internal equity) and fair and equitable compensation relative to the external market (external equity). Consider the following scenario: You have two medical assistants (MAs) who earn $15 per hour at your medical practice. When you hire a new MA, you discover that the current market pays $16 per hour for medical assistants. Respond to the following discussion points in relation to equity conflicts and compensation: State what you would offer the new MA and provide your reasons. Discuss the implications of your decisions on internal and external equity. Evaluate the changes, if any, you would make in the compensation of your current MAs. Recommend strategies for resolving similar equity conflicts with compensation. INSTRUCTIONS ARE HIGHLIGHTED IN RED Please cite sources in your work and provide references for the citations in APA format. Short indepth o 50 words or less answer for each question is all that is required please use sentences as headings.

Paper For Above instruction

What compensation would you offer the new MA and why?

I would offer the new MA $16 per hour to align with the current market rate, ensuring competitiveness and fairness in attracting qualified candidates, which supports organizational efficiency and employee satisfaction (Bohnet, 2016).

What are the implications of your decision on internal and external equity?

Offering $16 per hour may create internal pay disparities with existing MAs earning $15, potentially affecting morale, but aligns with external market fairness, maintaining overall competitiveness and reducing turnover risk (Larkin et al., 2012).

Would you make any changes to current MAs' compensation? Why or why not?

I would consider adjusting current MAs’ pay to $16 per hour to ensure internal equity, boost morale, and prevent dissatisfaction, while acknowledging market standards, which fosters a fair and motivated workforce (Milkovich & Newman, 2019).

What strategies would you recommend for resolving similar equity conflicts in compensation?

Implement transparent pay policies, conduct regular market surveys, and use pay-for-performance systems to maintain transparency and fairness, minimizing conflicts and aligning compensation with both market standards and internal equity (Gerhart & Rynes, 2013).

References

  • Bohnet, I. (2016). What works: Gender equality by design. Harvard University Press.
  • Larkin, I., Pierce, L., & Gino, F. (2012). The psychology of pay-for-performance systems. Harvard Business Review, 90(7/8), 78-85.
  • Milkovich, G. T., & Newman, J. M. (2019). Compensation (12th ed.). McGraw-Hill Education.
  • Gerhart, B., & Rynes, S. L. (2013). Compensation: Theory, evidence, and strategic implications. Routledge.

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