Data Support Total Rewards
Name
Institution
Data Support Total Rewards
In HRM, compensation refers to the total non-cash or cash payments, which employees receive in return for their work for an organization. It could be in terms of cash payments, bonuses, sale commission, profit sharing, as well as overtime pays. The U.S. labour department never covers oversight compensation for the state workers’ compensation program. As stated by the U.S. labour department, the compensation plan to any employee should be consistent with the federal labour standards act as confined by the legislative law in each state (U.S. Department of Labor2019). State minimum wage prevails in those states where it is higher than the federal minimum wage.
The average cost for the compensation of employees is about 36.61 USD per hour. The minimum wage from the federal state differs from that of Midwestern states because the federal and state labour wages cut off particular occupations as well as industries from minimum labour standards covering fulltime employment. Each of them sets its minimum compensation rate or even exempting them from the employees’ rules like seniority, training, or even new signing, unlike their counterparts who set higher wage rates (Heathfield, 2016). Therefore, the merge in the compensation rate is brought about by the state’s approach to its set laws and employee services provision.
In the Midwestern states, the average compensation for employees differs, offering various pay schedules and pay ranges. Minimum rates are meant to adjust the assurances of competencies’ in the labour market. The average compensation is 22.01 USD per hour and benefits averaged at 9.72 USD. In Illinois, the minimum wage is 7.25 USD (Omaha, 2019). While in Iowa minimum wage is tipped at 7.25 USD per hour (STTMINWGIA, 2019). Nebraska exhibits an increase in the minimum fee of 9 USD per hour as compared to the other Midwest states, which is above the federal minimum wage. The minimum wage in the three states differs as a result of differences in the consumer index.
Organizations should meet employee rewards or benefits through the increase of their minimum wages irrespective of the workers’ occupation. Fair Labour Standards Act (FLSA) provides regular payments with overtime pay to both private and public employees. The FHH should aim at achieving this by increasing the wage rates (SHRM. 2017). The benefits should include fixed salary, variable pay averaging to $1.03 hourly, or 2.8% of total compensation (Rodman et al., 2016). Paid leave should amount to $2.64 hourly or 7.2 % of the full payment. Insurance cover in terms of both short and long term disability averages at $3.19hourly or 8.7% of total compensation (SHRM. 2017). Retirement and saving (both short and long term incentives) should amount to $1.94 hourly or 5.3% of the compensation plan. Acceptable required rewards should average to $2.68 hourly, which is equivalent to 7.3% of the compensation plan (Heathfield, 2016).
In conclusion, other than salary and benefits consideration, FHH should consider other factors for adequate organizational prosperity and employees’ motivation.
Several other factors include workplace and health safety, staff and employee union, and employee benefits security, as well as employee protection.
References
Heathfield, S. M. (2016, December 5). What’s in a comprehensive employee benefits package? Retrieved from https://www.thebalance.com/what-s-in-a-comprehensive-employee-benefits-package-1917860
Rodman, S. O., Barry, C. L., Clayton, M. L., Frattaroli, S., Neff, R. A., & Rutkow, L. (2016). Agricultural exceptionalism at the state level: Characterization of wage and hour laws for U.S. farmworkers. Journal of Agriculture, Food Systems, and Community Development, 6(2), 89-110. Retrieved from https://www.dol.gov/general/aboutdol/majorlaws accessed on November, 22/2019
SHRM. (2017). The 2017 employee benefits: Remaining competitive in a challenging talent marketplace [PDF]. Retrieved from https://www.shrm.org/hr-today/trends-and-forecasting/research-and surveys/Documents/2017%20Employee%20Benefits%20Report.pdfaccessed on November, 22/2019
U.S. Department of Labour (2019). Minimum wage laws in the states. Retrieved from https://www.dol.gov/whd/minwage/america.htm