Compensation Management: Wage Types, Laws, and Positions Report

This report delves into the intricacies of compensation management, examining various aspects of wage determination and compensation packages. It begins by identifying three positions that utilize annual salaries and three that rely on hourly wages, providing justifications for these choices based on job characteristics and industry standards. The report then explores the legal framework governing compensation, specifically highlighting the role of the Fair Labor Standards Act and other relevant state laws. It outlines the legal requirements for salaried positions and discusses the rationale behind the establishment of compensation laws, emphasizing the protection of younger workers and the limitation of employer liability. Furthermore, the report identifies positions where wages are paid in alternative forms, such as referral bonuses and tipped wages, explaining the reasoning behind these compensation methods. Finally, it assesses the effectiveness of these different compensation approaches, concluding that they can be as effective as traditional salary or hourly wage models. The report concludes by summarizing the key findings and emphasizing the importance of understanding compensation structures in the modern workplace.

Running head: COMPENSATION MANAGEMENT
Compensation management
Name of the Student
Name of the University
Author Note:

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Introduction
The foremost determination of this essay is to focus on the different categories of
compensation packages for different jobs. The compensation packages that will be
discussed in this essay include the hourly wages, annual salary and other different kinds
of wage related laws, which are responsible for the determination of the form of wages
(Washingtonpost, 2019). The reason behind the selection of the categories of wages will
also be considered in this essay. The effectiveness of the other categories of salary apart
from the hourly and the annual wages will be also discussed in the essay in a descrptive
manner.
Discussion
Three positions where wages are paid in terms of annual salary
The three positions where wages are paid in terms of the annual salary are as follows:
 Software Developers
 Internet Service Providers
 Storage Service Providers
These positions have annual salary packages on the basis of the nature of the job.
There are many issues regarding the payment for these positions (Washingtonpost, 2019).
An hourly salary is not at all suitable for these jobs as there many business parameters
such as over time and consistency associated (Luce, 2017). The hourly jobs are the type
of jobs which are done per hour irrespective of the amount of work done during the
working hour, fixed remunerations are not provided to the workers of the hourly jobs.
The hourly jobs are mostly found the service industries and the manufacturing industries.

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Three positions where wages are paid in terms of hourly rate
The three categories of hourly jobs are as followings:
 Construction Workers
 Bus drivers
 Customer Service Representatives
These positions pay an hourly rate instead of an annual salary as their nature of
the jobs and the performance of the jobs are considered within an hourly basis
(Washingtonpost, 2019). Higher educational qualifications are not needed for these
particular kinds of jobs. The salary of the jobs is dependent upon the number of hours
worked. There are no fluctuations in the salary of these kinds of jobs. The remuneration
of the employees working on hourly wages is not always fixed as most of the times they
get paid for their extra effort before and after their working hours (Ejermo & Schubert,
2018). The employees working on hourly jobs are paid on a daily basis based on the
number of hours they are working for in the workplace.
Law determining of the form of compensation
There are different categories of laws associated with the determination of the
form of the compensation like the Fair Labour Standards Act is there to decide which
category of compensation or wage is required for any category of job. There are
numerous state laws which are there for the determination of the form of remuneration
such as the jobs with monthly salary and annual salary, at the same time there are special
remuneration laws for the workers who are on leave due to medical reasons such as

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pregnancy and for treatment purposes. Special remuneration packages are also there for
medical expenses, disability payments and retraining.
Legal requirements for a position that pays a salary
The legal requirements for a position that pays a salary to depend upon the type of
the job such as its skill set of the employees and experience of the employees in the same
industry in terms of years. Apart from these requirements, there are facilities such as
medical leave with full pay and casual leave with pay in a few workplaces which are
given to the employees apart from their fixed week offs.
Reason behind the establishment of the compensation laws
There are different categories of reasons behind the establishment of the
compensation law like the Fair Labour Standards Act are as the followings:
 The efforts which are given by the younger sections of the society like the
students from high school are needed to be protected and secured by the
management of the workplaces (Washingtonpost, 2019). The compensation laws
are very much useful to protect the job securities of those younger employees as
there is always a need to maintain a good working environment in the workplaces.
 The liability of the employers are not usually unlimited, the compensation laws
are very much helpful to limit the employer's liability.
 Compensation is a significant aspect which is given to the employees if they are
medically injured in the workplace or in their shift timings and at the same time
compensations are also given to the family of the employees in case the employee

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is dead while working (Hirsch, Husain and Winters, 2016). Thus, this
compensation law is very much useful to all the employers of the country.
 The liability of the employers of the business organization can be controlled to a
significant extent with the help of this law, thus this law is useful to limit the
employer’s liability.
Three positions where wages are paid in other forms
The three positions where the wages are paid in other forms are as followings:
 Volunteers of an event management
 Volunteers working in NGO for improving the quality of life of the remote areas.
 Tipped wages which are there for the agents of the third parties of the business
organizations, as they provide the contact of the third parties to the business
organizations.
Other forms of compensation
The other forms of compensation are the base pay of the employees which do not
include the compensations and the incentives, commission schemes which are given to
the employees who provide better services in their workplaces (Washingtonpost, 2019).
The referral bonus schemes are also available in few workplaces where the employees are
credited with extra money if they provide good quality manual resources to the
organization like an experienced person who was looking for a job over a longer period
of time.

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Reason behind choosing the method
The main reason for stating specific reasons for these jobs is the nature of the job.
The main reason behind choosing these kinds of remuneration schemes is the nature of
the jobs, monthly or weekly salary cannot be given to employees getting tipped wages as
they work whenever the organization want them to work (Minor & Cameo, 2018). The
needs and requirements of the organizations in terms of recruiting new employees are
responsible for the referral bonuses, there are no additional perks and long paycheck wait
for this category of remuneration.
Justification of effectiveness of the stated forms of compensation
The above-stated compensation forms are more or less effective as compared with
the salary or hourly wages as the employees who are working under these compensations
works with same motivation and dedication as the hourly wages (Washingtonpost, 2019).
The referral compensation schemes can be very much useful for the organizations to
understand the capabilities of the resources as well as to identify the potential employees
who are willing to work for this organization.
Conclusion
The above essay helps in concluding the positions where wages are paid in terms
of an annual salary or hourly wages. The law determining the form of compensation is
also included in this essay. This essay explains the legal requirements for the position
that pays a salary as well. The reasons behind the establishment of the compensation laws
such as maintenance of the human resources of the country can be also identified in this
paper. The positions where wages are paid in other forms are also identified in this paper

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such as referral bonuses and tipped wages can be also determined from this paper. Thus
this essay was very much useful to understand the different categories of compensation
packages in a descriptive manner.

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