Wednesday, July 31, 2019

Compensation trends in the United States Essay

The current trend of globalization, technical revolution and competition, has had dynamic impact on the compensation trends worldwide, as well as within United States. The whole ladder of compensation from agriculture to Information technology has seen an upsurge in compensation. The economic conditions, the political support and the globalization have played an important role in setting the curve for this trend. There is greater awareness, increased skill, enhanced efficiency and wider range of choices. The human resource has become a more valued, competitive and specialized force affecting the future of economy and industry. They have the bargaining power, and capacity to mould the pattern of growth in every arena of service, research, education, health and industry. â€Å"The RAND Corporation, in a report prepared at the request of the U. S. Department of Labor, says three trends will shape the labor force and employment relationships in the coming years: a slowing in the growth rate of the workforce, an acceleration in technological advances, and continued globalization. † (RAND, 2004) â€Å"The Emerging Trends in Human Resources† looks into many trends which would affect the future compensation package for people in United States. He categorizes them in workplace trends which would affect the employers and employees with better technology, higher health insurance, outsourcing, aging and other factors. Demographic factors like growth, retirement and aging. The organizations will need to respond with more strategy to retain and recruit new employees as well as train and upscale them. The political emphasis on economy, growth and outsourcing will guide the future trend dramatically. The trends of the society will dictate the nature of the work force and the balance of the compensation. International trends like expansion of businesses globally, rise of Asian market and emerging off shoring giants like India, china, Philippines and others add more to the competitive edge. (Greene, 2006-2007) Most companies have turned to total rewards and pay-for-performance programs as a vehicle for maximizing return on investment and employee potential. Variable pay is now a major part of compensation design for nearly 80% of U. S. companies, according to our Salary Increase Survey. Having the best people is more important than ever, especially in a business environment focused on value creation. In fact, many experts believe that attracting, motivating, and retaining the best talent is one of the greatest obstacles to growth over the next decade. Smart companies are finding ways to get the most from their investment in compensation and rewards without sacrificing the ability to compete for talent. (Hewitt, 2007) According to the report, titled, â€Å"The 21st Century at Work: Forces Shaping the Future Workforce and Workplace in the United States. † (RAND,2004) These trends have important implications for vital aspects of the future workplace and workforce and for the U. S. economy. These trends will affect the size, makeup, and skills of the labor force, the kinds of work and its settings, and worker compensation. Understanding these trends will help workers, employers, educators and policymakers make informed decisions that reflect changing realities. (RAND,2004) There is tremendous promise in the rise of competitive compensation package in most fields with better opportunities for growth in Unites States. The demand for skilled human resource will pave the way for next decade in business, healthcare, services, engineering, IT, and many other fields. This is the period of strategic planning, wide range compensation and timely rewards. Work Cited (2-23-2004). RAND Report Predicts Trends in Labor Force. Retrieved February 23, 2007, from BLR Compensation BLR. com Web site: compensation. cfm/id/153659 Greene, Keith J. (2006-2007). HR SPHR. Retrieved February 23, 2007, from SHRM Web site: www. fmi. org/humanresources/Emerging_Trends_Presentation. pdf Rothberg, Deborah (29-AUG-2006). Study: Skills Shortage Boosts Salaries. Retrieved February 23, 2007, from e WEEK Careers Web site: www. careers. eweek. com/article/Study+Skills+Shortage+Boosts+Salaries/18739 _1. aspx (2007 ). Compensation & Rewards. Retrieved February 23, 2007, from Hewitt Web site: www. hewittassociates. com/Intl/NA/en US/OurServices/ServiceHRC. aspx? cid=2402

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