Compensation Management

There are many things to consider when deciding whether or not to accept a job offer overseas. This week, we discussed what factors are most important when thinking about working internationally.

During this discussion, I had very similar thoughts with my peers with this topic. If given an opportunity to take a job in another country for a certain period of time, there are factors about every aspect that would need to be considered. Almost all of us stated that we would need to asses whether or not the country we would be working in was one that we felt we would be able to fit in. This means thinking about factors such as culture, language barriers, economic and political stance, etc.

In addition, salary is an important factor to consider. Moving to another country would be a huge adjustment, and a relocation package would be important. Depending on the standard of living on the country you are going, salary and benefits would need to be adjusted accordingly.

Lastly, we all mentioned the factor of relationships/stage of life. We all felt less or more inclined on accepting if we were in a stage of life that included serious relationships (significant other, children). Most of us agreed that being in our early twenties was a great time to travel for work.

Throughout this week, we have explored the issue that is executive pay. It has been interesting to analyze all sides of this controversial subject. Personally, I believe executive pay in itself is an appropriate system, however I think it has been extremely stretched past its original intent. Over the last few decades, the difference between executive pay and regular pay has become shockingly large. As we heard in the video, “The CEO is payed so much more than the average worker, they have no idea how the other 99.99% of the world lives.”

Some claim that in order for society to continue to work hard, be motivated, and create jobs, there needs to be one or two people making outlandish amounts of money. While this makes sense, those below the CEO and top executives may argue that they simply aren’t given the same options to increase their profits like they do, primarily through stock options.

By placing a cap on executive pay that will begin to decrease the large disparity, many people will be extremely unhappy. Top executives are confident that they are taking on extreme responsibility in leading an entire company, and deserve that compensation. However, doing this may allow lower level positions to take more risks and climb up the ladder in a different way.

Overall, the topic of executive pay has many factors and opposing sides. I believe that although it is a traditional way of rewarding those who have worked extremely hard, there should be more structure put in place to even out the playing field even slightly.

When creating and discussing a list of benefits in our groups this week, our top ranks were very similar. We all agreed that benefits such as health/dental insurance, 401k, and paid time off were non negotiable. When compared to other benefits that are often offered, these seemed to be the minimum of what we felt companies should offer. Personally, I think the reasoning behind this is fairly simple. When looking at a long term job, you want a company that will offer you the benefits necessary to take care of yourself and provide for your family. Additionally, just about every company is willing to offer this.

Our non essential benefits varied between us, depending on more personal preference. Some of us would prefer tuition reimbursement, while others are attracted to the idea of wellness programs. The varying answers our group had were not surprising, as our priorities and backgrounds vary.

It is interesting to look at the reasoning behind different companies benefits packages and why they offer what they offer. If a company has a lot of entry level positions they need to fill, those candidates most likely won’t be as interested in benefits such as child care. On the other hand, middle aged employees who are looking to start a family would hold benefits such as maternity leave to a very high regard.

Benefits are a huge factor in deciding what company you are willing to work for long term. A company must look at what they are able to offer while also keeping in mind the demographics of their employees.

With millions of companies in the world today, each is unique to one another. No two companies are the same, hence why their way of paying employees differs as well. Different pay structures allow for a company to base an employee’s salary on what aligns with their companies mission as a whole. There are two different kinds of pay structures. A person focused pay structure rewards employees based on them acquiring new skills, knowledge, and competencies that will help them be more successful in their position. A job based structure focuses more on the responsibilities and skills required for the job itself.

I decided to analyze RXBAR. RXBAR is a snack brand that is primarily focused on simple ingredients that promote a healthy lifestyle. The employees at RXBAR are held to the same importance level as the product. They are focused on investing in their people, and promote training and career development heavily. By maintaining a flat structure, they encourage employees to collaborate and increase their knowledge for the product outside of work. It is crucial to them that each employee feels empowered to be their true self, making self development a top priority.

After looking at RXBAR’s website, reading their mission statement, and analyzing their company structure, I came to a conclusion that I feel a person based pay structure would benefit them. By rewarding their employees for bringing the ideals of the brand outside of work, they will be more likely to open doors to new and innovative ideas. Their brand is medium sized, but growing quickly and expanding from just the original ‘RX bar’ it began as. Employees educating themselves on things such as nutrition and physical activity could be a huge positive for their brand, and should be awarded within their pay structure.

There are many instances where compensation plays a role in one’s motivation. Whether it’s staying at a job where you are unhappy, but are making ends meet, or your motivation simply stems from the desire to be payed more.

An instance that has always stuck out to me was a few years ago at my part time job. Aside from the top management, just about everyone was a college student. This made for a lot of growth room for young employees.

A coworker of mine was offered a promotion to assistant manager. Although this was a great offer and we were all proud, it caused an internal struggle for my coworker. She was now trying to juggle a full course load of college classes, as well as assistant manage an entire shop, which requires a huge time commitment. Normally, each of these responsibilities would be enough on their own. My coworker was struggling to decide how much she could handle, but was highly motivated to put all of this on her plate simply because the position was paid more than a typical employee. This increased compensation motivated her, because like most college students, she was willing to stretch herself thin in order to afford college life.

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