The topic that offers a broader view of the strategic compensation study is discretionary benefits



Post 1 (so)- 

The topic that offers a broader view of the strategic compensation study is discretionary benefits.  The first discussion board topic dealt with flexible benefits, and the ability of the employer to attract talent with these incentives.  Since writing the first posting, it has come to light that most flexible benefits fall under the category of discretionary benefits.  These benefits are not required by the employer, but are incentives that are offered to attract top talent.  A second insight that was revealed during the course study was the entitlement mentality that is associated with discretionary benefits.  Earlier studies revealed that the modern welfare mentality has created an entitlement scenario which includes discretionary benefits offered by employers (Martocchio, 2016).  These benefits were first introduced to entice individuals with higher training, skills, and education to switch over, or retain employment with an organization.  The plans have now morphed into expected benefits without an expected performance level. 

            Martocchio (2016) notes that the Brazilian government mandates that any benefit offered for an extended period of time becomes a non-discretionary benefit.  While this has not become a law in the United States, it has become an expectation. Martocchio (2016) notes that Brazil is one of the strongest economies in South America.  However, it is also a Socialist society, and lately has shown dramatic signs of economic upheaval.  A recent article noted the recession, and near depression state of Brazil owning to poor politics, socialist policy, and corruption (Lyons, 2016).

            Several large world economies are studied, contrasted and compared based on wages, benefits, pensions, and health care (Martocchio, 2016).  The findings are analyzed to show a contrast between the benefits and salaries of individuals across the globe.  Throughout the reading, it is determined that after a cumulative study of American compensation strategies, other countries have less discretionary benefits and more mandated benefits.  The author illustrates that paid leave, and paid vacation and holiday pays that are considered discretionary benefits in the United States are legal mandates in other countries .  Questions arise concerning the competition of industry, if most discretionary benefits are mandated, rather than offered voluntarily. Organizational costs are higher if there is no ability to contain costs.  It would be exponentially more expensive to offer additional benefits above what are already mandated to be given.  Products would cost more; owing to a higher labor rate, and therefore harder to export to cheaper economies.  Finally, innovation must suffer from lack of incentive to improve performance given that most professionals would opt to stay at organizations given the seniority levels, rather than seeking better benefits.

            The ability to offer discretionary benefits allows organizations to attract top talent, and to offer incentives beyond what competitors offer. Jyothi (2016) draws a comparison between discretionary benefits, and Maslow’s theory of needs.  The comparison shows that individuals seek certain needs past monetary, that can be meet through discretionary benefits.  This in turn leads to higher motivation, increased productivity, and greater retention among employers.  Benefits that become mandated are seen as entitlements, and therefore offer no incentive for employees to better themselves at the organization they are associated with. 

Post 2 (CS)- 

In the first week of this course there was a discussion forum about what we wanted to learn more of when it came to specific subjects.  I had chosen a few subject matters.  Consolidated Omnibus Budget Reconciliation Act known as COBRA. Fair Labor Standards Act known as FLSA. Federal Insurance Contribution Act, known as FICA and OASDI is Old Age Survivor and Disability Insurance, these are covered through our text. I was not sure choosing these subjects would open other doors to material that I was unaware of, simply because throughout my professional life, I have worked in positions to where I needed have the knowledge of how FICA, FLSA, and COBRA works for the employee.  Each of these sublines all have importance when it comes to compensation management.  I must be honest, these subjects that I chose to learn more of, sadly did not expand my perception, because it was already things I knew from job experience.  

But I have broadened my knowledge base with researching more about how to be a better coach and manager for the personnel that strives their best every day they come to work.  One thing that comes to mind about being a great leader is communication.  It comes in all forms verbal and nonverbal. And through performance evaluations and appraisals, communication plays a big part.  There are four approaches to job performance appraisals and such assessments are those of comparison, trait, goal oriented, and behavioral classifications and structures (Martocchio, 2015).  

There is a various amount of systems to analysis, trait structures are rather easy to make, as well as easily added to several varieties of positions within the establishment. This classification makes it easy to define, and justify how employees get paid using the merit pay system. Although the trait system is simple to apply, yet it does have restrictions by reason of how management parallels characteristics of their staff members to their own. Assessment and comparison methods are how leaders view the personnel’s production, and compares to the job production of all additional personnel, such is stratified upon the greatest to the weakest producers.  High ranking staff members can obtain supplemental benefits because of their production and those who are not able to perform to the level of others essentially should be let go.

The systems which entail the behavioral side give the leaders of the organization opportunities to positively rank the staff pertaining to their characteristics while undertaking their work duties. They are peculiar than trait, and comparison structures since they are properly functional, they do not have aberrations with them, since it is grounded on the staff’s characteristics. Behavioral structures are delicate occurrence methods, animatedly immovable evaluation measures, and functional classification levels that are mounted to warrant that it is administered precisely that contribute in the classification not having any issues or situations within it. Goal oriented methods are the utmost operative approaches. It delivers personnel with objectives to accomplish throughout the assessment time (Ibrahim Holi Ali, 2012).

This type of evaluation is imperative to who managers truly can lead their team.  Performance appraisals are employed throughout and across the globe to control how to appropriately evaluate the staff. Performance appraisals along with wages and benefits are exercised oppositely in proportion with other nations.  Worldwide execution computation is more intricate than that of indigenous activities, additional time is indispensable to execute outgrowths in affiliates than is habitual in a national exchange (Swanepoel, Botha, & Mangonyane, 2014).


The lesson to learn here is a simple one, even though in the beginning we may anticipate that we will learn one thing and set our minds to it, the unexpected will always present itself and show us a new.  Taking an easy road of how we know something already and in hopes we might grasp a better knowledge of the information we already have mastered does not always prevail.  But being able to see that our knowledge base can be expanded with more information to in the end be able to support and coach personnel to be better is always a positive, and this is what I have found with more information through performance assessments and evaluations.  Therefore I am able to be a better executive for all personnel in need of great coaching.

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