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Compensation is a controversial workplace topic. Throughout the years, specifically the past decade, average employee wages have not greatly risen. However, managerial and executive pay has steadily increased.
Despite current economic stability and low unemployment rates, U.S. businesses are constrained from raising employee salary and benefits due to low-wage foreign competition. This week's readings showcase a case study on pay compression at Envelop City and on how McDonalds uses praise (intrinsic factor) and individual incentive pay (extrinsic factor) to ensure satisfied and happy employees.
Discuss how an organization can motivate its employees to maintain/increase their productivity and performance without significantly increasing employees' compensation. Additionally, as a compensation consultant, how would you develop market value for positions within your organization? Propose a compensation plan to ensure that rewards (i.e., wages, benefits, and other compensation) match job duties, tasks, and responsibilities.
Answer the above using the question and answer (Q&A) format. 300 words
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