Compensation Management Discussion

Subject: Employee Management
Pages: 2
Words: 579
Reading time:
3 min
Study level: Bachelor

Enhancing Regulatory Environment

There is a wide variety of regulations that enforce equal employment rights for all citizens in the United States. These regulations address such issues as discrimination by gender, race, religion, or national origin (Gerhart & Newman, 2020). The principle of equal pay for equal work is maintained at the legislative level. Moreover, such major regulations as minimum wage, hours of work, and child labor are introduced in order to provide strict frameworks for employers (Gerhart & Newman, 2020). However, some organizations may violate the law by maltreating their employees. Hence, it may be beneficial for both employers and employees to enhance the regulatory environment. The most effective and the most obvious way of maintaining a regulatory environment is acting in complete compliance with the law. Labor regulations are designed not only to provide equal opportunities for all workers but also to provide decent employment with high standards. Therefore operating in compliance with the legislation offers the organization a competitive advantage as it attracts highly qualified employees who seek reliable employment conditions. Decent working conditions also contribute to higher productivity and quality.

Another method to enhance the regulatory environment is to use existing law and develop its principles. For example, there are various laws that prevent discrimination and enforce equal opportunities for employees. Organizations may take a step further and pay broader attention to diversity issues by hiring people from underrepresented social groups. Such an approach may create positive precedents, and other organizations may overthink their recruiting strategies. Acting in accordance with primary principles of corporate social responsibility, in general, may contribute to the enhancement of the regulatory environment.

Minimal Wage and Administration of Compensation

As already mentioned, the minimum wage is one of the three legal frameworks listed in the Fair Labor Standards Act of 1938. The minimum wage is closely linked with the administration of compensation and provides the labor market with a number of benefits. The minimum wage sets strict standards preventing employers from underpaying their workers (Grimshaw, 2016). Even though there are those who find the benefits of minimum wage highly debatable, there is no sufficient statistical proof that the legislation leads to unemployment. Minimum wages also have a positive effect on average wages and may cause economic growth (Grimshaw, 2016). However, the legislation may be violated by various organizations leading to severe socio-economic consequences. It may be necessary to provide all citizens with decent pay and living standards, and hence it is vital to maintain compliance with the minimum wage legislation.

There is a number of methods that may be utilized in order to achieve the above-mentioned goal. First, it may be essential to provide sufficient information regarding minimum wage provisions to people from diverse social groups. It is critical to translate the law into different languages to inform the citizens about their rights comprehensively. Second, it may be beneficial to provide thorough supervision maintained by inspectors. In order to achieve that goal, a sufficient number of inspectors should be hired and trained to meet the requirements of their duties. Third, the law compliance may be maintained by introducing strict penalties for its violation. It may also be beneficial to introduce simple and straightforward legal frameworks for workers to report issues and violations related to minimum wage provision. Worker associations and trade unions may also decrease the probability of violations. Conclusively, minimum wage plays a significant role in the socio-economic field, and a variety of methods should be implemented to maintain compliance.


Gerhart, B. A., & Newman, J. M. (2020). Compensation. McGraw-Hill Education.

Grimshaw, D. (2016). Minimum wages, pay equity, and comparative industrial relations. Routledge.