Compensation and Benefits Analysis: HRM 0100, University Name

This assignment delves into the realm of compensation and benefits within the context of Human Resource Management (HRM). It explores the evolution of employee benefits, from basic coverage to the modern 'cafeteria approach,' and the importance of balancing company affordability with the need to attract skilled employees. The assignment specifically examines the ethical implications of incentive programs, arguing against providing bonuses solely to top managers and highlighting potential drawbacks of various incentive strategies. The solution references relevant literature and emphasizes the significance of workplace safety and employee retention. It underscores the importance of fair compensation practices and their impact on employee morale and productivity.

Running head: COMPENSATION AND BENEFITS
COMPENSATION AND BENEFITS
Name of the Student
Name of the University
Author Note

1
COMPENSATION AND BENEFITS
Reaction to Unit 8
Compensation, as well as employee benefits, have become an essential area in human
resources. The policy of payment depends on how much a company can pay to attract skilled
employees. Nowadays, employee benefits have changed a lot; they can now choose the
benefits they want. The Canadian law regarding employees states that there should be
effective means of communication. They pay special attention to workplace safety and health
benefits. They have ensured a safety plan that will help in employee retention as money does
not always act as a motivational factor (Schwind, 1998).
Ethical Issues
No, it is not ethical to provide incentive bonus only to the top managers as it will
annoy and hurt the employees that are at a low hierarchy. The other employees might be
dissatisfied that will affect their productivity and will lead to employee turnover. The
employees will accuse the organisation of being biased. Furthermore, other employees might
be more efficient than the ones who are getting more bonus (Nosenzo, 2016). Therefore, it is
not ethical to create this partiality. Providing incentives to all the employees will increase
their productivity, they will work towards improving their skills, and there will be less
employee turnover. Disadvantages of the same are there can be misaligned incentives; it can
lead to conflict amongst the employees, incentives may not always be a motivational factor,
employees might not feel the need to work more as they will know that they will be getting
the same bonus as others (Nosenzo, 2016).

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COMPENSATION AND BENEFITS
References
Nosenzo, D. (2016). Employee incentives: Bonuses or penalties?. IZA World of Labor.
Schwind, H. F. (1998). Canadian human resource management: A strategic approach.
McGraw-Hill Companies.