Week 7 Discussion1 2 HR Knowledge 6: Compensation Thoroughly review the following

Week 7 Discussion1


HR Knowledge 6: Compensation 

Thoroughly review the following video:


Based on your review, please respond to the following:

As important as compensation is to employees so is how compensation is communicated by the organization. As Chief HR Officer for the company what key ideas would you implement in the company to ensure communication of the compensation plan is effective? Be specific.

Note: Your response to the discussion must be informative, be supported with research,  and follow the requirements set by this course.

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Peer Review Response:

Laquinta Nelson 

RE: Week 7 Discussion

Hellp Class,

1.     Clearwater Electronics wants to strategically attract new talent to the organization to support future growth. Why is it important for the HR director to work with top management to improve the firm’s recruiting system?

·        Because the HR director is responsible for the firm’s talent management, it is important to work with top management to ensure the recruiting strategy meets the firm’s overall needs and attracts top talent.

. You are the HR director for Clearwater Electronics and have been invited to the organization’s yearly strategic goal-setting meeting. You started with the company six months ago, so this is the first time you have been invited to attend. Why do you think it important you attend this meeting, and how do you think HR can best contribute to the organization?

2·        It is important to attend to ensure that nothing discriminatory is discussed and to provide feedback on HR issues such as hiring, firing, and workplace violations.

·        It is important to attend to maintain HR records and comply with regulations.

·        It is important to attend to better understand the organization’s strategic position in the market and align human resources with that strategy.

·        It is important to attend so you can share the information you gather with your staff and other managers to ensure that everyone is updated and kept in the loop

3. 3. Clearwater Electronics has an employee recruitment and retention goal of 90 percent. How does HR planning best help the company meet or exceed its employee recruitment and retention goal?

·        HR planning helps the organization know how many employees the organization needs as well as what type of employees to hire.

·        HR planning helps the organization improve its plan to build an open and creative workplace.

·        HR planning helps synchronize the company’s financial obligations with its desire to pay its employees a competitive salary.

·        HR planning helps the company determine whether it needs an HR recruiter.

4.Due to an increasing number of company employees, the HR department at Clearwater Electronics wants to implement a new human resource information system (HRIS). The department plans to hire a new employee to assist in this implementation and will be looking for someone with technical skills in HRIS as well as communication skills. Why is it important for HR professionals now to have these skills?

·        HR professionals need to be able to provide employee training in computer skills in order for employees to improve their productivity.

·        HR professionals are now being asked to manage processes and need to be able to analyze and solve problems based on data, which they should then effectively communicate to others.

Peer Response
Dina Vasquez 

RE: Week 7 Discussion

Organizations sometimes make the mistake in assuming that employees understand their compensation package, so it is important that companies educate employees on the different components of the compensation package. This is referred to as a total rewards communication and is often used to attract and retain top talent. Almost 30 to 50% of employee’s compensation is made up of things besides base pay and include things such as 401k, benefits, bonuses or incentives, rewards and recognition, opportunity income, and paid time off (Dirks, 2020, p. 2). Because of this misconception, organizations need to make sure that employees know and understand their total rewards packages. If the company fails to clearly articulate and explain in detail the total value of employment benefits to employees, the company could lose valuable talent (Dirks, 2020, p. 3). 


One important aspect is making sure managers and employees have easy access to compensation information which includes benefits. The information needs to be clear and transparent so questions can be answered quickly and employees can be engaged. It is also important to show the total net value of employee so employees can get a holistic picture. This can easily be done with an online portal that gives employees access all of the time.




Dirks, E. (2020, June 31). Communicating a compensation plan to your employees. HRSoft. Retrieved November 19, 2021, from https://hrsoft.com/communicating-compensation-plan/. 

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Week 7 Discussion

Total Rewards Knowledge 6: Pay for Performance

Please view the following video in its entirety:


In the video, base pay and variable pay are discussed. What are the main differences between each? How would you use variable pay to drive organizational performance? Make the connection and be specific. 

Note: Your response to the discussion must be informative, be supported with research,  and follow the requirements set by this course.

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Janet Clowers 

RE: Week 7 Discussion

Hello Professor and Classmates,

Base Pay – is the hourly rate based on the position multiplied by number of hours worked. It is the standard pay rate an employee receives for performing specific job. The pay does not include additional pay such as bonuses, commission, tips, etc. (Rasure 2021). It is the regular salary an employee receives for providing services and does not take into consideration any performance standards.

Variable Pay – the employee’s pay is based their performance instead of a fixed hourly rate. The employee has to meet specific goals or benchmarks set by the company. It’s used to motivate and reward employees for their performance. When variable pay is used, it must be linked to the company’s objectives, clear standards of performance for employees to reach, the standards or the objectives must be achievable, must be easily understood, must be meaningful to the employees and be evaluated on a regular basis (GreggU 2016).

How I would use variable pay to drive organizational performance

I would use variable pay to drive organizational performance for an organization like the National School Lunch Program. The USDA reimburses public schools and nonprofit private schools for each meal served to students. The amount reimbursed for each meal will be based on the student’s household income. This means the more students eat in the school cafeteria, the more funding the school district will receive.

I would use the variable pay for the school cafeteria employees as a way to drive their efforts to increase the meal participation at their schools. The increase in meals will bring additional funding for the Nutrition Department as well as the school district; therefore, the school employees should reap some of the benefits of the increase in serving meals.

The focus would be for the school cafeteria workers to increase their meal participation by a 1% each month. They would be encouraged to do activities such as having fun promotions for the students, provide top-of-the-line customer service, preparing quality meals the students want to eat, etc. There will be some required monthly promotions required by each school.

Increase in meal participation in a school lunchroom means more students are eating healthy meals that will get them through a long day in school without being hungry.

Seeing students actually enjoy their meals for the school cafeteria will link how the employee’s dedication to the program has made a difference in the students’ lives.

The school and employees with the increase in meal participation would be recognized quarterly as a way to positively reinforce the school and the employees’ accomplishments.


 Rasure, E. (2021). Base Pay. Investopedia. Retrieved from https://www.investopedia.com/terms/b/base-pay.asp

GreggU. (2016). Step 6: Pay for Performance. Good For Learning. Retrieved from [YouTube] https://www.youtube.com/watch?v=-XqfsfLiy90


Peer Response

Vanessa Bogus 

Hello Class and Dr. Wash,

 Base pay and variable pay are ways an organizations use to create their compensation packages. According to the article Compensation.blr.com, employees’ salaries are at a fixed amount and the salary increases the longer the employees are at the organization or change in their position. Another way the base pay increase is by merit increases. The base pay is truly based off of the market analysis and external competetiveness( Gregg U, 2016).

Variable pay is more attractive to employees. Variable pay aligns with performance and organizational success(Gregg U, 2016). It also depends if the employee is full time or part time to make the best compensation plan for each employee along with the position. An employee pay will depend on performance, position, and experience. Variable pays gives an organization more flexiblilty with their payscal and budgets for employees.

Variable pay is used to motivation employees to be more productive, communication effectively with clients, attract more client or customers to the business. The use of variable pay will attract highly qualified individual and retain employee by offering commission and bonuses. An article from Paychex states that 90% of organizations have some type of performance based compensation. 


1. Gregg U, 2016. Step 6: Pay for Performance. https://www.youtube.com/watch?v=-XqfsfLiy90

2. Paychex Work, (2016). Are variable pay or performance incentives right for your business? www.paychex.com/articles/hcm/variable-pay-performance-incentives-your-business

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