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Organizational Objectives and Total Compensation in Different markets
Sergio Herrera
HRM/324
July 3, 2013
Dr. Donald Duvall

Organizational Objectives and Total Compensation in Different markets
In an attempt to attract and retain good employees, companies may offer the benefit of retirement savings options. Employers have the option of sponsoring benefit and contribution plans to eligible employees. It will also discuss how beneficial the plans may be for participants. Some Federal and State laws are valid and do have an impact on compensation inside an establishment and taxes that are applicable on income. The method which an organization uses to fix the salaries and benefit plan of employees depends on the outline that is provided by some federal and state laws. The Equal Pay Act of 1963 is directly linked with The Fair Labor Standards Act and it forbids dissimilarity between salaries of male and female employees employed at an identical position (U.S. Equal Employment). Employee Retirement Income Security Act of 1974 is another law which controls issues like pension benefits, retirement plans, disability, and health insurance schemes (U.S. Department of Labor). Defined benefit plans is a fixed amount set up for eligible employees for retirement. This plan consists of employer contributions either quarterly or annually. With these plans the employer decides to pay a secure quantity to the worker's pension account every year “When markets rise, the employer will reap the benefit of the rising values, and can reduce its pension contributions and increase its profits while the retiree continues to receive the same promised income” (401kpsp.com, 2011). These laws lay the groundwork of the majority of the programs like insurance for the unemployed, equality in unemployment, feeling of job security and Medicare. Benefits also play an essential role in the

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