Final answer:
Fair compensation in Human Resources Management involves wages and salaries, benefits, and equity-based compensation. These forms of compensation are influenced by various factors including experience and education, and can be affected by membership in a labor union or discrimination. Equal Opportunity Programs and comparable worth doctrine address compensation inequalities.
Step-by-step explanation:
A major challenge for Human Resources Management is to ensure that individuals are compensated fairly. There are three major forms of employee compensation: wages and salaries, benefits, and equity-based compensation. Wages and salaries constitute about three-quarters of total compensation and are the direct payment to employees for their work. Benefits encompass health insurance, vacation pay, retirement plans, employer payments to Social Security, and other non-wage compensations. Equity-based compensation involves the offering of stock options or other financial instruments typically available in the medium to large public companies.
Employee compensation can vary based on experience, education, skill, and other factors. For example, membership in a labor union or the presence of discrimination in the labor market can have a significant impact on compensation. Also, the doctrine of comparable worth states that individuals should be compensated equally for work that requires comparable skills, effort, and responsibility. Human Resources Institutional & Corporate Management practices, such as Equal Opportunity Programs and Security Management & Safeguards, can help address inequalities in compensation.