The New Pay Plan- Carter Cleaner Company

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The New Pay Plan- Carter Cleaner Company

Without a doubt, Carter Cleaning Centers Company is at a point where it should be developing a setup for a formal salary structure. An evaluation of the employees points to the reasons why having a formal salary structure is a good venture for Carter Cleaning Company. For example, Jennifer’s father says that he pays men 20% more than their women counterparts which should not be justification. Gender should not be a determining factor when deciding the salary to pay employees (Jayady, Subekti, Smyshlyaev, Protasova, & Artha, 2021). However, the company should have a salary structure that should be based on important factors such as the complexity of the job and the skills, knowledge, and experience of employees. Employees with more skills and work experience or those that perform more complex tasks would be justified to have a higher salary. Gender should not be a determining factor for employee salary. For instance, it is justified for a manager to earn more than an officer cleaner since the manager’s job requires more skills and knowledge and comes with more responsibilities. Having a salary structure is important as it fosters equity within the organization. Employees will feel more valued and appreciated irrespective of their position because they know that some professional jobs will fetch higher salaries than others. Because market surveys tend to focus more on the business’s external environment, it tends to be based on internal facts. As such, having a salary structure ensures employees are compensated according to the complexity of their job. Worth noting, good job evaluation motivates employees by rewarding the top performance. Evaluation that is based on salary ensures hardworking employees are recognized and rewarded.

Yes, Carter’s Cleaners policy of paying 10% higher than the prevailing rates is a sound action because it motivates employees. It serves as a motivating factor that enables the company to retain them in the company seeing that their company rate is way lower than the market rate. When there is a low pay rate, employee turnover increases (Whitehouse & Smith, 2020). After the organization finishes carrying out market surveys on rectifying employee salaries, it should proceed to assess the job descriptions of all employees. To determine the pay rate of the company, if the market pay rate is at $100 and the company’s pay rate is 10% extra, then it means that the company pays an extra $10 indicating that the company’s pay rate is $110 while that of the market if $100. Without a doubt, Carter’s female differential is not wise. Seeing that it is a cleaning company, the majority of the work has to do with pressing, washing, folding, and a few office duties. These are tasks that can be carried out by men and women easily. The reasoning that men should be paid 20% more than women because they work harder, therefore, does not apply. Women are also strong beings that work hard for their pay as such, all gender should be paid the same salary for equal work done.

I would suggest that Jennifer should focus her attention on setting up a formal salary structure for the company. This should be a priority as it will help the company address the unequal gender pay in the company. If she achieves this, she will motivate the employees and the company will continue thriving. Jennifer should also consider replacing the 10% policy with viable benefits such as health assurance and other incentives. Such actions go a long way in ensuring the employees are happy, reducing staff turnover and boosting the company’s profit margins. Jennifer should also do away with the extra 20% pay for male employees and replace them with an equal pay policy. This will ensure the company eliminates gender discrimination which is likely to cost the company a lot of money in lawsuits and a negative reputation.

References

Jayady, A., Subekti, P., Smyshlyaev, A. V., Protasova, O. N., & Artha, R. (2021). Salary scale and the diversity of wage systems. Linguistics and Culture Review, 5(S1), 293-302. https://doi.org/10.21744/lingcure.v5nS1.1375Whitehouse, G., & Smith, M. (2020). Equal pay for work of equal value, wage-setting and the gender pay gap. Journal of Industrial Relations, 62(4), 519-532. https://doi.org/10.1177%2F0022185620943626