Compensation and Benefits Paper Essay Example | Topics and Well Written Essays - 1000 words

Compensation and Benefits Paper - Essay Example For example, the same job might have different structures, meaning that the levels that the organization uses are diverse. In this case, the levels used by the organization determine the organization structure, since the different people report to different managers. In the example of software engineers in the Phoenix area, the type of job structures is best exemplified. In this case, there are three different job structures for the same occupation, each job structure attracting a different salary. The first job structure is Software engineer 1, which is the lowest level in the field. This job structure attracts an average salary of $58,001 (Salary.com, 2011), and from the job description, requires up to 2 years of experience in a similar position. An individual in this position is always under immediate supervision, and cannot exercise independent judgment in the job. The second job level is a software engineer 2, who makes an average salary of $73,539 (Salary.com, 2011), and is a l ittle higher than the software engineer 1. This job level requires between 2 and 4 years of experience, performs more tasks that the first job level. This employee reports to one manager, and is usually not under immediate supervision. ... The information described above can be used in the development of a pay structure in a simple way, since the factors that determine pay are already evident. The description of three job levels above indicates that two factors that determine the pay structure in an organization. The first factor is the experience that an individual possesses (Ranken, 2010). The educational level is usually constant, since an individual is expected to possess minimum qualifications before consideration for the job is done. In this case, the first level, which earns the lowest salary, possesses the least experience, and the third job level possesses the highest job experience. This indicates that the development of a pay structure should be dependent on the experience that an individual possesses. From the above information, it is also evident that the development of a pay structure is also dependent on the level of independence that an individual is accorded in an organization (RAnken, 2010). For examp le, a first level engineer is accorded the least level of independence, therefore, it is to be expected that the pay grade will be the lowest. Conversely, the third level engineer is accorded the highest level of independence; therefore, the pay grade is the highest. Benefits Benefit Description Value Reason for benefit Social Security Social security is a contributory program made by all employers to a government fund for the retirement, medical aid, and disability fund for employees. The employees are assured that they will get retirement benefits and medical care at the moment they retire. Required by law Disability Disability benefits are not mandatory since they are already covered by social security. This benefit is