Reference no: EM133138998

Fresh Munchables' new HR manager wants to increase the compensation rate so that each employee in one department is paid the same. Specifically, all employees would be paid as much as the highest-paid employee. This recommended proposal was denied. The HR manager explained that if a job requires equal skill, effort, and responsibility, and is performed under similar working conditions, employees should be paid the same irrespective of their gender or other personal considerations.

However, what other factors could appropriately influence employee compensation?

• Amount of time until retirement, because older workers require less direct compensation
• Medical needs and associated debt, because they increase health insurance costs for the employer
• Seniority and merit, because they are nondiscriminatory classifications for higher pay
• Number of children at home, because larger families require more financial resources