Final answer:
One compensation method used by my employer was a mixture of salary and additional benefits such as health insurance, vacation pay, and a performance bonus, which provided security and incentive for high performance. The transparent communication of this compensation package ensured procedural justice and employee satisfaction.
Step-by-step explanation:
In my personal experience, one compensation method that my employer has implemented is the provision of benefits in addition to my base salary. This compensation package included health insurance, vacation pay, and a performance bonus, aligning with the statistics that wages and salaries make up about three-quarters of total compensation, with the rest being additional benefits.
These benefits are critical to ensuring employee satisfaction and promoting a fair work environment. While the base salary acted as direct income, the additional benefits such as health insurance provided financial security in case of health issues, and vacation pay allowed for necessary rest and recuperation. The performance bonus was contingent upon meeting specific targets or objectives, thereby incentivizing productivity and high performance.
Moreover, procedural justice was evident in the implementation of this compensation method. It was communicated clearly and transparently, avoiding any ambiguity that might have led to dissatisfaction or unintended negative behaviors, as suggested by Greenberg's (1993) study.