Discuss the role of the human resources department in wage and salary administration.
Wage and salary administration is the process of paying the employees of an organization. This is usually done according to the rules and regulations developed by the HR department. These rules and regulations include many complicated calculations. A company must decide, for example, its policy about salary increases. Some companies give automatic raises after an employee has spent a certain amount of time in a position. Others give raises according to performance that meets certain specific standards. The HR department must also ensure that the wages and salaries of a company are both internally and externally fair. This means that the HR department must make sure that some employees within the company are not paid too much or too little compared to others who work relatively similarly. This also means ensuring that no demographic is paid less because of bias. Externally, the HR department must make sure that compensation is competitive with rival companies’ compensation. The HR department must also ensure that employees are paid the correct amount on time by managing payroll duties.