INTERNAL EQUITY (ALIGNMENT) AND EXTERNAL EQUITY (COMPETITIVENESS)
After reviewing the Wilson Brothers Case Scenario, as Director of Human Resources for the organization, what conclusions can you draw with respect to the status of the company’s compensation strategies that are currently in place? What would you do to begin to address this situation? (3 Marks)
Provide Constructive Feedback to at least two other student’s postings. (2 Marks)
HINT:-reference both internal equity (alignment) and external equity (competitiveness) in your response.
NOTE:-this Discussion Assignment will be marked on content, analysis, direct references to the readings, the overall …show more content…
Without external equity, it is possible that Wilson Bros may be unaware of whether they are offering their employees the most desirable and equitable compensation. Wilson Bros needs to assess the external environment to make sure that they are paying a comparable price to that of their competitors including incentives, benefits, and bonuses. Ensuring that external equity exists in Wilson Bros will help to further attract and retain talented employees.
The first issues that must be assessed in Wilson Bros compensation strategy is the inclusion of official job descriptions for each of their employee’s positions, employment equity policies that address standards of pay equity, performance appraisals that entice employees to work harder, bonus structures to compensate those hard working employees, succession management structures to ensure staffing levels are kept up, and promotional standards for those employees who want to move up within the company.
I believe that if Wilson Bros were to invest more into their employee’s compensation security and happiness in the company, they would reap many benefits including increased productivity levels, increased sales, reduced turnover, and an overall improved level of company morale.