Please reply to Donald and Gwedolyns discussions 1 and 2 below:
1: Donald- Contigent Workers Discussion:
Our textbook states that,"contingent workers1 are those who do not have an implicit or explicit contract for ongoing employment. Persons who do not expect to continue in their jobs for such personal reasons as retirement or returning to school are not considered contingent workers, provided that they would have the option of continuing in the job were it not for these reasons"(Martocchio, J.J. (2017). When a company needs to cut costs on the labor force and increase efficiency they hire contingent workers, they are competitive and effective workers that help companies achieve their goals.
The way they are paid is different, part time can only work 35 hours a week with no benefits. Working part time can also receive a retirement program as long as they have worked 1,000 hours over a 12 month period and they have to be 21. Contingent workers usually dont last over a year, they are hired as the regular workers are on vacation and they are paid from the company that hired them.
Temporary workers also fill in the gaps, they are also extras when a business peaks and the company needs extra hands to makes quotas and companys goals. Martocchio, J.J. (2017) states that," independent contractors, freelancers and consultants establish working relationships with companies on their own rather than through temporary employment agencies or lease companies. Traditionally, independent contractors typically possess specialized skills that are in short supply in the labor market. It is estimated that 34 percent of the U.S. workforce qualify as freelancers". The impact that it has on an organizations compensation plan is that companys can terminate contingent workers easily, as a rule they understand that this is a limited deal and the compensation costs are lower than a regular workforce commands.
Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th Edition). Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0
1: Gwendolyn Contigent Workers Discussion-
Workers who do not have an implicit or explicit contract for an on-going job are called contingent workers. Contingent workers fall under five groups of employees - part-time, temporary, on-call, leased employee arrangements, and independent contractors (Martocchio, (2011). Companies are always looking for ways to cut cost, increase efficiency, and perform competitively so they hire contingent workers. Contingent workers can be an effective tool for a company to achieve their goal. The way that contingent workers are paid varies. As a rule, part times workers can only work 35 hours a week and even though the companies that work contingent workers part time are their legal employers, they do not offer them benefits. People who work part-time can get retirement programs of they have worked 1,000 hours over a 12-month period and if they are over 21. Contingent workers are considered temporary workers who usually hired to fill in for regular employees when they are on vacation. Any payment is straight from the company that hires them and their employment does not last over a year. The companies who hire the on-call workers and send them to the job are responsible for managing and implementing Human Resources policies, including compensation. The ones who are the legal employers of these part-time workers are leased companies and they take care of the wage issues, benefits, and optional benefits and the company's retirement program is open to these employees.
The people who have specialized skills are independent contractors (Martocchio, 2011). There are not many people are with their skills and they are in short supply. These contractor's employment is usually less than a year and the pay levels are not watched over. Also, the companies are not obligated to pay federal income tax withholding, over-time and minimum wage, insurance premiums, and retirement income.
2: Donald- Executive and Non-executive pay discussion-
I think it does an organization is disservice when an executive earns a reward and he or she doesn't perform at a top tier level. This is a reoccurring problem in the executive world because it shows that people can take credit for others work and not be held accountable for the work they actually do or dont in this case our textbook states that," several critics have questioned whether such practices may interfere with some executives motivation to achieve excellent performance"(Martocchio, J.J. (2017).
Non executives workers are in another avenue because they are wage based from performance in comparison to executives who are on salary and rewards plus incentives. Non executives do not receive incentives. Martocchio, J.J. (2017) states that," the difference between executive and non executive is that executive compensation emphasizes long term or deferred rewards, over short term rewards". Jobs that a company has placed a higher value on will have specific conditions like a higher pay rate.
Bonuses can be rated on how good a company does under that CEO, so if the company has good sales then the bonus will obviously be good. The disparity between the executive and non executive compensation packages will continue to be an on going thing because of the formal salary structure they base what the position is entitled to. When a company offers incentives like bonuses, stock options, differed core compensation and platinum parachutes they change the scope of what manager or CEO can apply their knowledge to and therefore can end up paying more for someone who hasn't contributed anything to the company or to his or her employees.
Martocchio, J.J. (2017). Strategic compensation: A human resource management approach (9th Edition). Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0
2 :Discussion Gwendolyn- executive and non-executive pay-
The fact that executives receive lucrative rewards, even if the organization or executives do not perform to expected levels of shareholders, is still one of the most recurrent arguments with executive rewards. Several critics have questioned whether such practices may interfere with some executives' motivation to achieve excellent performance (Martocchio, 2011). The non-executive workers are under a lot of pressure because their wages are based on their performance whereas the executives receive their salaries based on their discussions such as incentives/rewards, and a base salary. The non-executives do not get incentive if they do not perform as expected, whereas, executives get their pay regardless of their performance. Provided by Wieters (2015) the deal between Robert Nardelli and Home Depot is a good example. The former CEO was fired for poor performance. After he was fired, he resigned with a $210-million-dollar severance package for only 7 years of service. Because he negotiated such a good deal with Home Depot, Nardelli could stay financially stable no matter what happened. Per Martocchio (2011) the top leaders of the company are the executives, so how did Nardelli get such a large severance package for his poor performance on the job? Is this why other employees are not paid so much? The difference between executive and non-executive pay is that executive compensation emphasizes long-term or deferred rewards, over short-term reward (Martocchio (2011). Meaning jobs of higher value requiring certain conditions such as managers will receive a higher pay rate. CEO's do not receive a higher pay rate because their jobs cannot be predicted and because of the external and internal market their jobs are unpredictable and are hard to describe (Martocchio, 2011). CEO's do get a base pay once a year, but the bonus they get is the icing on the cake. The bonuses are based on how good the4 company is doing, so the better the sales, the larger the bonus.
REFERENCE:
Martocchio, J.J. (2011) Strategic compensation: A human resource management approach (6th Edition). Upper Saddle River, NJ: Prentice Hall.
Wieters, L. (2015). Instructor's guidance.