Instructions

Review the following lectures:

• Pay, Benefits, and Employment Outside of the United States
• Compensation Challenges for the HR Professional
• Contingent Workers

Project

The project assignment provides a forum for analyzing and evaluating relevant topics for this week on the basis of the course competencies covered.

Introduction:

As an HR professional, you will face many challenges. How you respond to each challenge is predicated on the knowledge you have regarding the employees’ concerns and the applicable laws. You were recently apprised of an issue pertaining to Age Discrimination in Employment Act (ADEA) for one employee, and the contingent worker stated that he or she has not received overtime for the past two months. You were not aware of either of these issues until now.

Tasks:

To start your investigation and prepare for mediation, select one of the topics, ADEA or overtime, and

• Evaluate one of the laws on the applicable government website and discuss its critical points.
• Analyze a court case that resulted in one of the following: ADEA or overtime.
• Identify any relevant information from the court case to prepare for mediation.
• Defend the steps you will take to prepare for mediation.

To support your work, use your course and text readings and also use the

South University Online Library

. As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Submission Details:

• Create a 2–3 page Microsoft Word document.
• Name your file as SU_HRM5040_W4_Project_LastName_FirstName.

Compensation Human Resources

Pay, Benefits, and Employment Outside of the United States

Globalization has created the opportunity for US employers to partner with other businesses and
countries. The move from traditional manufacturing to knowledge- and service-based employment
also means that jobs and markets are more likely to be dispersed geographically. As the need for
employers to interact globally increases, the HR professionals are going to have increased
opportunities to develop compensation and bene�ts programs for US employees in foreign
assignments and for indigenous employees in foreign of�ces of the parent company.

Even though this list may not be all inclusive, there are few countries to consider: Brazil, Germany,
India, Canada, China, and Mexico. Now, let us take a moment to review a relocation decision of a well-
known company.

Many years ago, Hershey’s made a decision to close their manufacturing plant in Oakdale, California,
and relocate it to Mexico. In this small town, a chocolate festival was held every year. The employees
were displaced, and the patrons of the chocolate festival were also disappointed.

The History of Hershey’s
Review each year to learn more.

1894

1900

1903–1905

1906

1907

1909

Scenario:

You are an HR professional for an organization. You are tasked with layoffs and must design a pay and
bene�ts system for new employees in another country. Consider the following questions in order to
understand your role as the HR professional:

How would you begin to establish the policies and procedures for employees in the
manufacturing plant in Mexico? 

How would you investigate their wages and salary structures? 

How much paid-time off should employees receive?

How does the economic elements factor into the pay and bene�ts structure outside the United
States?

Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Pay and Bene�ts Outside the United States

From the South University Online Library, read the following articles:

Labor Aspects in North America Free Trade Agreement (NAFTA) Renegotiation
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=127587769&site=eds-live)

Host Country National’s Reactions to Expatriate Pay Policies: Making a Case for a Cultural
Alignment Pay Model
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=eue&AN=57657974&site=eds-live)

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1926

1929–1939

1945

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Compensation Challenges for the HR Professional

The HR professional will encounter many challenges with globalization, changes in laws, economic
conditions, and the leaders’ desire to maintain the competitive advantage. Peruse the following
topics for more information:

Raising federal minimum wage rate and strengthening overtime pay protections: There are
discussions on the national stage over the possibility of raising federal minimum wage rates and
strengthening overtime protections. While such changes are welcome news to a large segment
of labor force, there are possible consequences, such as companies’ reduction in staf�ng levels
to offset higher compensation costs.

Rising wages in China: Many US companies relocated manufacturing operations from the
United States to China because of lower labor costs. In recent years, wages have been rising in
China, and this trend is leading some US companies to consider returning business operations
to the United States. There are a number of factors contributing to the rise in wages, including
the Chinese governments’ attempts to increase domestic consumption.

Underemployment and the compensation-productivity gap: Underemployment and the
compensation-productivity gap have led to a mismatch in job quali�cations and job
requirements as well as in the compensation levels not increasing commensurately with labor
force productivity.

Workforce diversity: Workforce diversity requires employers to consider the needs and
preferences of employees while selecting options to include in the bene�ts program. In doing
so, companies must ensure the inclusion of relevant bene�t choices for the entire workforce.

Five Things Every HR Professional Needs to Do to

Succeed
Review each tab to learn more.

Leadership development

Compensation

Enhance knowledge

HR and organizational effectiveness

Understand the leaders’ vision and HR role in
helping the organization maintain the competitive

Get a seat at the C-suite table

advantage.

Take on a leadership role.

Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Challenges Facing Compensation Professionals

From the South University Online Library, read the following articles:

U.S. Department of Labor Final Rule Raises Minimum Wage for Federal Contract Workers.
Employee Relations Law Journal
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=100606622&site=eds-live)

Should Congress Increase the Federal Minimum Wage and Index It to In�ation? (Cover story)
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=a9h&AN=87088148&site=eds-live)

China under Attack
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=95541327&site=eds-live)

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Contingent Workers

Business necessities and employee work preferences have created a work environment �lled with more contingent workers than in the past. With each
generation, a new need arises. In previous years, employees were content with a forty-hour week, working for an employer for many decades and then
retiring by the age of sixty-seven. Now, employees are seeking �exible hours, and work-life balance has become an important factor in their lives. The HR
professional must be cognizant of the de�nition of a contingent worker and the laws and bene�ts that apply to these employees. Contingent workers can
be classi�ed as part-time employees, temporary employees, independent contractors, consultants, freelancers, or employees with a leased-employee
arrangement. A part-time employee works less than thirty-�ve hours per week. A temporary employee is contracted mainly through a temporary
employment agency. An independent contractor, consultant, or freelancer is not considered an employee. Lastly, the individual with the lease-employee
agreement is hired through leased companies. With the contingent workers de�ned, it is now time to turn to the laws and determine how the HR
professional will ascertain what constitutes an employee. The �rst thing the HR professional could do is use the Common-Law test (guidelines can be found
under the Internal Revenue Service [IRS] website). The HR professional can also use the economic realities test. There are several state and federal
regulations that apply to the contingent worker. The contingent worker is entitled to limited bene�ts. After reviewing the chapter for this unit, consider the
following:

What are the pros and cons of having a contingent workforce? 

What percentage of employees should be contingent workers within an organization? 

Why are unions opposed to companies having a contingent workforce?

Contingent Workforce

What Is Contingent Workforce?

From the South University Online library, read the following case study:

Creating a New Contingent Culture   (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?

sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=ent&AN=79057851&site=eds-

live)

Part-time employees

Temporary and on-call employees

Leased employee arrangements

Independent contractors, freelancers, and consultants

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach, read the following chapter:

Compensating the Flexible Workforce: Contingent Employees and Flexible Work Schedules

From the South University Library, read the following articles:

Lower Cost or Just Lower Value? Modeling the Organizational Costs and Bene�ts of Contingent Work
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=bth&AN=123754829&si
live)

Without Proper Planning, Contingent Workers Pose Serious Legal Risks to Employer Bene�t Plans
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=p6h&AN=61999016&sit
live)

The Contingent Workforce: A Challenge for Bene�ts Managers (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http%3a%2f%2fsearch.ebscohost.com.southuniversity.libproxy.edmc.edu%2�ogin.aspx%3fdirect%3dtrue&db=bth&AN=15537950&site

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