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Sample Coursework Paper on Three Top Elements

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Sample Coursework Paper on Three Top Elements

In human resource management, compensation is concerned with the amount of money that employees take homein exchange of the services they render to their employers. Given that this aspect occupies an important part in the lives of employees, employers should think about it deeply before they set it. They should consider what they want to achieve out of it in terms of motivating employees as well as streamlining it with the market conditions (Phillips, & Gully, 2013). For these reasons, they should consider the way they want to set it before they do it. 

In my opinion, the three top elements to consider when setting compensation are the elements of the reward model. These elements are the monetary, non-monetary and work experience elements. The monetary element is concerned with the amount of money paid to employees. For competitiveness, this element should be reflective of the labor market as well as the value that an employer puts on an employee. Its top three elements in my opinion are the merit increase pay, base pay, and variable pay. Base pay is the most important one because it takes care of skills and reflects the value that an employer puts on employee’s work. In most cases, it ignores differences attributable to employees, but takes care of responsibilities that employees play in their organizations. The variable pay on its part reflects the financial performance of the company whereas the merits increase pay reflects the way an employer value in terms of work experience. The non-monetary element is concerned with non-monetary aspects that motivate employees (Phillips, & Gully, 2013). This element is important because it takes care of employees’ factors that cannot be motivatedthrough money. On the other hand, the work experience element takes care of the number of years an employee worksin an organization.



Phillips, J., & Gully, S. (2013). Human resource management. Mason, Ohio: South-Western Cengage Learning.














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