Establishing a successful business enterprise requires a clear plan for its operations, setup, and running personnel. The Human resource sector plays a crucial role in managing employees in recruitment, training, supervision, and payment. The base pay structure is an essential component that must be set up with proper considerations. The payment framework of a business should be created in a manner that complies with all legal requirements of the country and ethical standards (Michael, 2019). Such conditions include determining the minimum wage for each person. The business should assess the amount of work one does and adjust the payment to a reciprocating level that appreciates them for the work done.
The pay structure should be developed in a fair and equal way. All workers in the business should receive payments in a justice manner regardless of age, gender, race, or any other discriminatory factor (Michael, 2019). Pay per performance should be observed to promote equity as the persons will receive compensatory payment for their advanced skills in the business. A standard compensation philosophy should be established in each company. Employees working overtime or those performing tasks that are out of their scope of practice legally deserve compensation that reflects the same efforts they used in performing extra duties. The business pay structure should put into consideration the aspect of child labor. Legal requirements dictate that no child should be included in waged work despite paying them.
Of all the legal requirements that a business should meet when setting up the pay structure, determining the minimum wage per person is the most challenging for small business operators. This is due to poor profits and also fluctuating earnings (Michael, 2019). Once I worked for a local bakery in my hometown. On some occasions, if each team member could have earned as per agreed, it was noted that the business could collapse as the profits made for the sales during that period were low.
The pay of an accountant in a manufacturing firm should be entirely a base pay, and they should be paid a fixed amount of money within a specific period, such as monthly. This is because the scope of their work is well established, and roles are clearly defined (Michael, 2019). During my attachment period as a student, the accountants in the firm collected their payslips at the end of the month, and the system worked perfectly.
For this category of work, the pay should be based on incentive pay that emphasizes performance. This method is efficient as it ensures that the pay structure meets both the employees and the company’s needs. The workers are also motivated as they will earn more if they work harder. My classmate worked in retail promoting a new brand of tea, and each day he made as per the sachets sold.
A company is managed by a CEO whose role is to run the firm and ensure that each objective is achieved. For such a kind of job, the pay should emphasize base pay. However, the payment structure should consider the work hours and the extent of the business operations (Michael, 2019). Most companies today have employed CEOs, and each of them is paid a fixed salary, and they are the top earners in each business.
A hospital is not a profitable enterprise, and all physicians’ pay should be base pay. However, they should be paid as per the job grade, skills, and knowledge. They should also be compensated for extra duties. In state hospitals, the hospital pays all medical workers a base pay that has fixed.
The incentives, including bonuses, commissions, and stocks as critical motivators, are key motivators. The company’s sales and profit margins will increase as the workers strive to improve their pay, contributing to the growth and extension of the business. Incentives also tend to build a bond between the customers, the salespersons, and the industry, and this provides a stable marker where the company sells its services and products (Michael, 2019). The set targets are achieved easily as incentives direct everyone towards the same goal.
Though incentives play a crucial role, they can negatively affect an individual. They include increased pressure and stress as one tries to earn more sales. Long-term stress can lower a person’s quality of productivity. In some cases, the incentives are not based on fairness, as others could earn more. This can result in workers resenting their colleagues and discouraging teamwork. Incentives also lead to employees undermining others rather than supporting each other for better results.
In the effort to earn more, the workforce may disregard the moral and ethical standards of the business and society by using uncouth ways to increase their sales and, in some cases, fake sales. The company should develop a good pay structure and appropriate incentives to resolve such issues. Each team member’s sales should be monitored to ensure that they are achieved legally and morally. Each person should be given a fairground, and teamwork should be enhanced to promote individual growth.
Continuum experiment with pay performance concerning incentive pay links perfectly to performance measures. The scheme boosts the aspect of employee performance and also rewards hard work as nurses and doctors who work more and produce deserved outcomes earn more. For instance, the program plays a crucial role in encouraging physicians and nurses to improve the quality of care provided in healthcare facilities. This will lead to a high care rate, protecting and maintaining life.
The gain-sharing program is designed to reduce the various costs in the hospital, including nursing room costs, supplies, implants, and operations. This program, therefore, is not beneficial to the non-medical support staff of the company. This is so because the program is entirely directed toward making health care affordable to the patient (Gupta, et al., 2021). Therefore, it is only beneficial to the sick, and their families as the medical bills will be reduced. The support staff employed to perform other subordinative duties will not gain anything from the program.
If I were to create a balanced scorecard for the continuum’s top executives, a critical aspect of performance measurement I could include is the measures of healthcare providers not taking into consideration the work done. Such an initiative will redirect the focus of the care workforce from considering the incentives available to what matters in healthcare: offering standardized care to improve lives and better patient prognosis (Aagaard et al., 2021). To handle resentment, I will formulate an evaluation of the incentives. Such a program will help the top executives to assess if their adopted incentive by performance strategy is working or not.
References
Aagaard, A., Saari, U. A., & Mäkinen, S. J. (2021). Mapping the types of business experimentation in creating sustainable value: A case study of cleantech start-ups. Journal of Cleaner Production, 279, 123182. Web.
Gupta, D., Mehrotra, M., & Tang, X. (2021). Gainsharing Contracts for CMS’Episode‐Based Payment Models. Production and Operations Management, 30(5), 1290-1312. Web.
Michael, A. (2019). A handbook of human resource management practice. bookboon. com.