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Compensation and Benefits issues: discrimination, benefit package, merit pay
1. Angela Lacy, an African American employee in your accounts receivable department, has filed a charge of discrimination, alleging she was unfairly passed over for promotion and regularly receives smaller pay increases than do employees who perform less well (she alleges). You have to go to your boss, the VP of HR, and explain what elements f your HR system can be used in your legal defense. What things do you hope you did in setting up and administering your systems to counter this discrimination charge?
2. Erin Kelly, VP of Human Resource at Lawson Chemical, just purchased a local salary survey that has employee benefits data. She was shocked to see that Lawson has a larger benefits bill (38 percent of payroll) than the average in the community (31 percent). In a memo to you, she demands an explanation for why our package is significantly bigger. What sound reasons might save you from getting fired?
3. Some people deserve merit pay, and others may not. Take a moment and think about merit pay and its impact on your current or previous jobs. Do you believe merit pay is given justly or unjustly?
Benefits are very necessary. However, it is not possible for all companies, of any size to be able to afford all of these programs. In addition, the new medical insurance fine may in many cases put companies down for the count.
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