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Compensation and Pay Equity at a Local Hospital


In the present situation, I am to perform as an HR Consultant working for a small local hospital, with the task of expanding the workforce of certified medical assistants. The major problem is that three exemplary certified medical assistants who occupy the same positions in the organization are paid different salaries. In this paper, the present discrepancy of pay will be explained, and the strategies to address it will be discussed. Additionally, the influence of total compensation strategy on the organization’s ability to attract, retain, and motivate top talent will be explained.

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The Discrepancy of Pay Explained

There are multiple legitimate reasons for the employer to treat the salaries of workers in a different manner (Wilkie, 2017). For example, in the given scenario, Susi, a 2-year employee is at $28,000, and Tom, a 5-year employee, is at $27,000. This tendency could occur because Susi has more experience in the field or if she has a higher qualification. Moreover, looking for the causes of pay discrepancy, the HR practitioner has to look into the jobs the three employees perform and find out whether or not they are exactly the same (Wilkie, 2017). It may happen that the pay varies because some of the workers managed to take over additional functions or have more advanced skills.

Apart from the internal discrepancy of pay discussed previously, there is also an external one. Specifically, all three employees with uneven compensations are below the local job market rate for their job. This is a serious problem that may lead to such consequences as decreased job satisfaction of employees, increased turnover, and low morale (Wilkie, 2017). Both discrepancies need to be addressed by the organization in order to avoid unwanted outcomes.

The Strategy to Use to Correct the Internal Equity Issue

In order to correct the internal equity issue, first of all, a thorough evaluation of the jobs done by the three workers needs to be carried out. If the duties and skills of the employees are the same, it is important to look at their backgrounds and see if some of them have better qualifications than the others. Secondly, it may be necessary to create a table that would explain to employees what factors influence their compensation. In this case, if the compensation is assigned fairly and based on reasonable advantages, the chance of potential dissatisfaction could be minimized (Wilkie, 2017).

The Strategy to Use to Correct the External Equity Issue

The external discrepancy of pay could be caused by the fluctuation of the worth of this particular job on the local market. Specifically, the employees who have been working in this organization for longer periods may have been hired during the times when the value of certified medical assistants used to be lower than today (Wilkie, 2017). As a result, the newer hires, such as Susi, may be paid more than the employees who have been in the organization for five or ten years, such as Raul and Tom.

If this is the case, this discrepancy needs to be eliminated immediately because professionals who do valuable jobs are to be paid adequately (Wilkie, 2017). The organization needs to carry out job market research concerning the current pay for certified medical assistants. Further, a pay range table needs to be adjusted based on the relevance of compensation. Consequently, the employees need to be placed in their new pay ranges and their compensation rates have to match the update.

Ensuring that New Hires are Paid Equitably

The pay range table mentioned in the previous section should become guidance for future hires. This measure is necessary to ensure that the compensation offered to the new hires is equitable in regard to those of the other employees as well as the current rates of the local job market. Moreover, it is vital for the organization to check the market rates regularly in order to stay a relevant and desired employer for the top talent.

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Total Compensation Strategy and the Organization’s Ability to Attract, Retain and Motivate Top Talent

Top talent is attracted to organizations based on such characteristics and their reputation, visibility, corporate culture, career development opportunities, and, of course, the compensation they offer. The existing employees are also influenced by the compensation because its structure and size are the factors that can motivate or demotivate them. Employees who feel that they are not compensated enough for the services they perform are likely to become dissatisfied with their jobs and lose their dedication to their duties. Also, workers who know that they are paid below their local market range for their jobs may start to experience turnover intention.


In summary, total compensation strategies used by organizations are powerful instruments helping them attract, retain, and motivate their employees. As a result, inadequate compensation can drive top talent away from an organization thus weakening its position as a competitor in the industry. Employers’ approach to compensation translates into their attitude towards their workers and the degree to which the employees are valued at their workplaces. Consequently, failed compensation strategies, motivation based on the fear of fines or terminations are the ways leading to decreased morale and poor integrity.


Wilkie, D. (2017). When two workers doing the same job earn different pay. Web.

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