Call/WhatsApp: +1 914 416 5343

Compensation Management

Regulations are any laws, restrictions or standards that are set for businesses by the government or accredited government agencies that must be followed in order to avoid consequences.  “The adaptive abilities of firms to navigate the environmental dynamics within which they operate are widely recognized as being among the major organizational capabilities that determine survival and growth.” (Shu & Lewin, 2016)  Employers generally cannot change the regulations that they must adhere to but they can implement certain business practices that make it easier to comply with the regulations while the focus remains on the business.   “Compliance with laws and regulations can be a constraint and/or an opportunity for a compensation manager.” (Newman, Gerhart, & Milkovich, 2017, p. 652)  Our course text speaks specifically about compensation managers in their examples but these strategies can be applied in a sort of discipline in order to create a better working regulatory environment.  The first thing out text describes is to “join professional associations to stay informed on emerging issues and to act in concert to inform and influence public and legislative opinion.” (Newman, Gerhart, & Milkovich, 2017, p. 653)  This can be helpful to keep at least one person in the business up to date to make sure if there are any changes that the business can address them in a timely manner in order to avoid confusion and possible monetary repercussions.  The other advice out text gives to study and review other practices from similar business; this may give an idea of what other companies are changing.  In order for this to be effective the results of the changes must also be reviewed, to know if it was a successful approach.    

            The Family Leave and Medical Act was passed in 1993 and is related to workplace compensation in various ways.  “The purpose of the act is to provide all eligible employees with leave of up to 12 weeks per year for specified family and medical reasons.” (, 2013)  A compensation manager can help maintain compliance by staying up to date on the minimum requirements of this law.  The manager may also help the business by creating a specific company policy for these types of situations that exceed the minimum requirements.  A compensation manager will have the necessary knowledge to know if this would be feasible strategy for the company without cutting into the profit margins.  “More state legislatures are noe moving toward some form of paid family and medical leave for workers.” (Newman, Gerhart, & Milkovich, 2017, p. 480)  Having an extended Policy on these issues may also be attractive to future employees, as these things are becoming more important to job seekers.

Leave a Reply