It does not follow the traditional out; however, it aligns with the values and goals of the organization. (Yahoo- about us, 2014). Yahoo Inc. Was founded in 1994 and was originally designed to help people locate websites based on categories, and its design makes it sustainable with minimum effort. It has grown into a leader in daily habits such as email, news, sports and entertainment. World class leadership and talent made it possible for Yahoo! To thrive through the infusion of products that are driven by users to ensure experiences are tailored to their needs.
The number of visitors to the site had doubled every month since its launching. It enables people to navigate the new and developing technology of the World Wide Web and becoming one of the internet’s most visited sites (Yahoo- about us, 2014). Yahoo utilizes intrinsic and extrinsic (monetary and monetary) compensation to attract, motivate and retain the most innovative thinkers and the brightest minds. Yahoo expects employees to work hard; therefore, the benefits and perks offered by the company reward them accordingly.
Pay, benefits and careers are key components of Yahoo compensation strategy. Competitive pay rates attract skilled workers and reduce turnover rates because t aligns with company values and goals. Attractive benefits such as stock options, 401 K (with company match), pre-tax savings, income protection (provided to all employees at no extra cost), tuition reimbursement and consulting subsidies give Yahoo a real competitive advantage and are used as a reward and recognition tool. Stable careers represent the future value and the opportunity to grow. Yahoo- about us, 2014). Yahoo has created a work environment and culture that is hard working. However, the best compensation practice is offering a wide array of on-site perks. Perks help to provide an atmosphere that promotes employee happiness. Employee happiness fuels performance; consequently, employees work harder, are more engaged and form an attachment to the company, which in the long run aids in retention and loyalty. Also, concierge services such as dry cleaning, car wash and oil change help employees attain a work-balance life (Yahoo- about us, 2014).
The compensation-related challenges Yahoo faces are overhauling an outdated compensation structure in order to create better paying opportunities for top talent. The goal is to create a compensation package that ill convince smart, young talent acquired through mergers and acquisitions to remain with Yahoo instead to leaving for faster-growing rivals with alluring equity and better workplace amenities. Yahoo applies its compensation practice in a cost effective manner to ensure it has a positive impact on stakeholders and the organization, yet are competitive.
Yahoo invests in their employees by “implementing systematic training programs” (Mortician, 2013, p. 20), which will lead to increased pay within the organization. The upward career track comes with corresponding salary and merit increases. Working at Yahoo provides employees with challenging experiences; in return, they earn development opportunities and incentives that encourage the most talented employees to remain with the company. Employees are in a demodulating environment centered on respect.
Performance-based bonuses motivate employees in aligning their individual goals with company goals. The compensation practices for executives at Yahoo create a negative impact on other stakeholders and reflect negatively on the company. Though compensation professionals have a duty to “design pay and benefits systems that will attract and retain the best- lifted employees” (Mortician, 2013, p. 21), Yahoo executives’ compensation has risen at a drastic rate compared to lower level managers and employees. These changes are not explained by performance or a growth in the size of the organization.
Instead, they are rewarded for failure while other stakeholders suffer the consequences. This compensation practice, while it may be good for the executives, increases the wage bill and sends ill-feelings throughout the organization which can weaken loyalty, create higher turnover at lower levels and erode the talent pool. In addition, it causes decreased effort among employees and managers which in turn affects profitability and morale (Manage & Magna, 2012). The U. S. Government affects the compensation practices of Yahoo through policies.
The compensation practices at Yahoo are aligned with pertinent legislation ‘to design legally sound pay and benefits practices” (Mortician, 2013, p. 21). This is done to ensure that all employment laws are adhered to, and balance of power is maintained in accordance with the federal constitution. The sound compensation practices allow Yahoo to offer compensation that is fair, roved safety nets for the unemployed and the disadvantaged and ensures that employees are protected from exploitation and disparate treatment and impact.
The unions ensure that employees receive the pay and benefits that were agreed upon in collective bargaining agreements so that employees are paid what they are worth for the value of work that is produced. Laws, labor unions, and market factors impact the compensation practices of Yahoo. Employment laws creates a balance of power that is maintained among employee and employers to ensure that the “pursuit of goals by any one group does not undermine others’ goals, articulacy those with the least amount of power- employees” (Mortician, 2013, p. 26).
The income continuity, safety and work hours legislation was designed and enacted for individuals if they should become unemployed due to poor business conditions or workplace injuries, in an effort to stabilize their income. The Fair Labor Standards Act of 1938 (ELSE) addresses how Yahoo must compensate their employees if they are being paid minimum wage, entitled to overtime pay and the child labor provisions they must adhere to if applicable. For example, since the federal minimum wage is $7. 25, Yahoo cannot pay any f its employees below that amount unless they are students.
Also, Yahoo must pay its workers “at a rate equal to time and one-half for all hours worked in excess of 40 hours within a period of 7 consecutive days. In this case, if the cafeteria worker’s regular hourly rate at Yahoo is $20 for 40 hours, all hours beyond that with a 7-day timeshare will be calculated at $30 per hour. The Equal Pay Act of 1963 makes it illegal for Yahoo to discriminate sexually in the pay employees are compensated for performing equal work. This means that males and females performing the same tasks and duties must receive equal ay.
Child Labor Provisions restricts the age, hours conditions, environment in which children are employed, and their education hindered (Mortician, 2013). Pay discrimination is regulated through the Civil Rights Act of 1964 and the Equal Pay Act of 1963 to prevent specific classes of employees from being discriminated against when employers make employment and pay decisions. According to The Civil Rights Act of 1964 and subsequent amendments and acts, Yahoo should present equal opportunities of employment regardless of race, color, religion, sex, or national origin and without disparate treatment or impact.
The organization is committed to “attracting, developing and retaining a diverse workforce” (Nicks, 2014) and doing so requires compliance with all laws that prohibits discrimination. The Equal Pay Act was enacted to remedy employment discrimination in the private sector and must be based on compensable factors. Yahoo offers employees benefits and perks that accommodates employees with disabilities and family needs such as the Pregnancy Discrimination Act of 1978, the Americans with Disabilities Act of 1990, and the Family and Medical Leave Act of 1993 (Mortician, 2013).
Yahoo abides by all laws that guide discretionary employee benefits such as the Internal Review Code ORCA), Employee Retirement Income Security Act of 1974, Consolidated Omnibus Budget Reconsideration Act of 1985 (COBRA), and the Pension Protection Act of 2006. All these laws work together to ensure that the employees are protected accordingly, and they ensure that all taxes owed by Yahoo and its employees are paid.
Labor unions impact Yahoo’s compensation practices because unions “influence employment- related decisions, especially when they are dissatisfied with job security, wages, unifies, and supervisory practices” (Mortician, 2013, p. 44). The union can affect the compensation of unionized members, but due to the spillover effect, unionized members also benefited from collective bargaining. The National Labor Relations Act of 1953 provides equal bargaining power between employees and employers by doing away with hindrances.
Concessionary bargaining by unions now focuses on job security rather than large pay increases which are an advantage for Yahoo Inc. Market factors impact Yahoo’s ability to offer competitive wages and benefits packages to attract and retain the best employees. The Industry’s differentials and the profitability of the industry impact Yahoo’s ability to pay higher wages and offer more lucrative compensation packages. Seniority and longevity pay would not be effective at Yahoo Inc. Yahoo is always searching for new talent and fresh ideas and does not align with its competitive strategies and goals.
Employees who do not perform on the same level would not receive the same pay increases as those who make significant contributions. Yahoo is under constant pressure from shareholders to improve productivity and to be innovative; seniority pay does not allow Yahoo o remain competitive. On the other hand, merit pay would be more effective because it rewards Yahoo employees for individual achievements and employees are more motivated when the appraisal is based on how they perform on an individual basis on set tasks (Oh & Lewis, 2009).
An appraisal of employee performance will be able to ascertain how well each employee “is accomplishing assigned duties relative to established standards and goals” (Mortician, 2013, p. 58). Employees can be made aware that the harder they work to meet company goals and quotas, the greater the chances of receiving pay raises. Performance appraisals that are based on the trait system (quality of work, initiative, etc. ) and the goal-orient system would prove effective at Yahoo.
By utilizing the trait system, each employee would be rated on their traits and characteristics; though it is subjective, the specific traits would be clearly defined. Management by objectives assesses an employee’s improvement toward strategic objectives established by Yahoo managers. This appraisal technique allows “supervisors and employees to determine the objectives for employees to meet during the rating period and employees appraise how well they have achieved their objectives” (Mortician, 2013, p. 64). Yahoo! S compensation practice is geared toward attaining and provides the leverage needed in retaining the best and most innovative talent. Their compensation strategy has a positive impact on most of its stakeholders, while adhering to all laws and being aware of market factors that could impact on its compensation practice.
Cite this Writing assignment for veterans day
Writing assignment for veterans day. (2018, May 25). Retrieved from https://graduateway.com/writing-assignment-for-veterans-day/