Please reply to Donald and Gwedolyns discussions 1 and 2 below:

#1 Donald- Contigent Workers Discussion:

Our  textbook states that,”contingent workers1 are those who do not have an  implicit or explicit contract for ongoing employment. Persons who do not  expect to continue in their jobs for such personal reasons as  retirement or returning to school are not considered contingent workers,  provided that they would have the option of continuing in the job were  it not for these reasons”(Martocchio, J.J. (2017). When a company needs  to cut costs on the labor force and increase efficiency they hire  contingent workers, they are competitive and effective workers that help  companies achieve their goals.

The way they are paid is different, part time can only work 35 hours a  week with no benefits. Working part time can also receive a retirement  program as long as they have worked 1,000 hours over a 12 month period  and they have to be 21. Contingent workers usually dont last over a  year, they are hired as the regular workers are on vacation and they are  paid from the company that hired them.

Temporary workers also fill in the gaps, they are also extras when a  business peaks and the company needs extra hands to makes quotas and  companys goals. Martocchio, J.J. (2017) states that,” independent  contractors, freelancers and consultants establish working relationships with companies on their own rather than through temporary employment agencies or lease companies. Traditionally, independent contractors typically possess specialized skills that are in short supply in the labor market. It is estimated that 34 percent of the U.S. workforce qualify as  freelancers”. The impact that it has on an organizations compensation  plan is that companys can terminate contingent workers easily, as a rule  they understand that this is a limited deal and the compensation costs  are lower than a regular workforce commands.

Martocchio, J.J. (2017). Strategic  compensation: A human resource management approach (9th Edition).  Hoboken, New Jersey: Pearson Education, Inc. ISBN 978-0-13-432054-0

#1 Gwendolyn Contigent Workers Discussion-

Workers who do not have an implicit or explicit contract for an on-going job are called contingent workers. Contingent  workers fall under five groups of employees – part-time, temporary,  on-call, leased employee arrangements, and independent contractors  (Martocchio, (2011). Companies are  always looking for ways to cut cost, increase efficiency, and perform  competitively so they hire contingent workers. Contingent  workers can be an effective tool for a company to achieve their goal.  The way that contingent workers are paid varies. As  a rule, part times workers can only work 35 hours a week and even  though the companies that work contingent workers part time are their  legal employers, they do not offer them benefits. People  who work part-time can get retirement programs of they have worked  1,000 hours over a 12-month period and if they are over 21. Contingent  workers are considered temporary workers who usually hired to fill in  for regular employees when they are on vacation. Any  payment is straight from the company that hires them and their  employment does not last over a year. The companies who hire the on-call  workers and send them to the job are responsible for managing and  implementing Human Resources policies, including compensation. The  ones who are the legal employers of these part-time workers are leased  companies and they take care of the wage issues, benefits, and optional  benefits and the company’s retirement program is open to these  employees.

The people who have specialized skills are independent contractors (Martocchio, 2011). There are not many people are with their skills and they are in short supply. These contractor’s employment is usually less than a year and the pay levels are not watched over. Also,  the companies are not obligated to pay federal income tax withholding,  over-time and minimum wage, insurance premiums, and retirement income.

#2 Donald- Executive and Non-executive pay discussion-

I  think it does an organization is disservice when an executive earns a  reward and he or she doesn’t perform at a top tier level. This is a  reoccurring problem in the executive world because it shows that people  can take credit for others work and not be held accountable for the work  they actually do or dont in this case our textbook states that,”  several critics have questioned whether such practices may interfere  with some executives motivation to achieve excellent  performance”(Martocchio, J.J. (2017). 

Non executives workers are in another avenue because they are wage  based from performance in comparison to executives who are on salary and  rewards plus incentives. Non executives do not receive  incentives. Martocchio, J.J. (2017) states that,” the difference between  executive and non executive is that executive compensation emphasizes  long term or deferred rewards, over short term rewards”. Jobs that a  company has placed a higher value on will have specific conditions like a  higher pay rate.

Bonuses can be rated on how good a company does under that CEO, so if  the company has good sales then the bonus will obviously be good. The  disparity between the executive and non executive compensation packages  will continue to be an on going thing because of the formal salary  structure they base what the position is entitled to. When a company  offers incentives like bonuses, stock options, differed core  compensation and platinum parachutes they change the scope of what  manager or CEO can apply their knowledge to and therefore can end up  paying more for someone who hasn’t contributed anything to the company  or to his or her employees.

Martocchio, J.J. (2017). Strategic compensation: A human resource  management approach (9th Edition). Hoboken, New Jersey: Pearson  Education, Inc. ISBN 978-0-13-432054-0

#2 discussion Gwendolyn- executive and non-executive pay-

The fact that executives receive lucrative rewards, even if the  organization or executives do not perform to expected levels of  shareholders, is still one of the most recurrent arguments with  executive rewards.  Several critics have questioned whether such  practices may interfere with some executives’ motivation to achieve  excellent performance (Martocchio, 2011). The non-executive workers are  under a lot of pressure because their wages are based on their  performance whereas the executives receive their salaries based on their  discussions such as incentives/rewards, and a base salary. The  non-executives do not get incentive if they do not perform as expected,  whereas, executives get their pay regardless of their performance.  Provided by Wieters (2015) the deal between Robert Nardelli and Home  Depot is a good example.   The former CEO was fired for poor  performance.  After he was fired, he resigned with a $210-million-dollar  severance package for only 7 years of service.  Because he negotiated  such a good deal with Home Depot, Nardelli could stay financially stable  no matter what happened.  Per Martocchio (2011) the top leaders of the  company are the executives, so how did Nardelli get such a large  severance package for his poor performance on the job?  Is this why  other employees are not paid so much? The difference between executive  and non-executive pay is that executive compensation emphasizes  long-term or deferred rewards, over short-term reward (Martocchio  (2011). Meaning jobs of higher value requiring certain conditions such  as managers will receive a higher pay rate. CEO’s do not receive a  higher pay rate because their jobs cannot be predicted and because of  the external and internal market their jobs are unpredictable and are  hard to describe (Martocchio, 2011).  CEO’s do get a base pay once a  year, but the bonus they get is the icing on the cake.  The bonuses are  based on how good the4 company is doing, so the better the sales, the  larger the bonus.

REFERENCE:

Martocchio, J.J. (2011) Strategic compensation: A human resource  management approach (6th Edition).  Upper Saddle River, NJ: Prentice  Hall.

Wieters, L. (2015). Instructor’s guidance. Retrieved from Ashford Student Portal

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