Posted: October 6th, 2016

Compare and Contrast an Entitlement Compensation Philosophy and a Performance Focused Compensation Philosophy

. Please respond to at least 3 postings from other class mates in a positive manner. Please respond to each post separately using at least 2 refer Compare and Contrast an Entitlement Compensation Philosophy and a Performance Focused Compensation Philosophy To attract and retain workers that are motivated and competent, healthcare organizations compete with each other aggressively and also other firms within the industry to hire skilled employees. This calls for the human resource departments in healthcare sector recruit competent professionals to earn a competitive advantage. The human resource strategist has to find a balance between the company priorities and competing factors and come up with a compensation system that satisfies the goals and objectives of the employees and organizations. Entitlement compensation philosophy is common in organizations that have increasing compensation schemes each year. It helps in organizing pay rates. This compensation increases based on time one has spent with the company. Generally, according to entitlement philosophy, all employees including executives who subscribe to it ought to receive pay increase on base pay for spending more than a year working for the company. In addition, benefit programs and incentives should continue growing regardless of the changing economic conditions or industry (Flynn, Mathis, & Jackson, 2016). According to Entitlement Compensation Philosophy, a company should give the same rate of increase and uniform payout bonus for all their workers as well. According to this philosophy as the employee continues to offer his or her service, costs of employer increases, regardless of competition pressure from other organizations or performance of the employee. On the other and Performance Focused Compensation Philosophy refers to a situation where businesses compensate employees based on the performance level achieved by each employee. Unlike Entitlement Compensation Philosophy not all employees are guaranteed a raise and also do not offer equal increases throughout the firm. Employees who perform satisfactorily obtain pay increase and each employee has his or her different rate of compensation rate (Flynn, Mathis, & Jackson, 2016). Therefore, those employees who have satisfactory performance are considered competent and the labor market compensates them more compared to those with average performance depending on the appraisal method applied (Stevens, 2014). Bonuses are given out based on the group, organization and individual performance results. In facets of compensation practices, only a few organizations are fully performance oriented. Both entitlement compensation philosophy and performance focused compensation philosophy use direct compensation. These are tangible rewards paid for in working relationship. Health workers are paid a basic pay plus a variable pay. The variable pay is given out in the form of stock options, incentives, and bonuses (Reed &Bogardus, 2015