Human Resources Management for Public and Nonprofit Organizations

Compensation 269

gainsharing formulas and programs must change as well to stay relevant

(Lawler, 1989, 2000). Miami - Dade County, Florida; the City of Charlotte,

North Carolina; the City of College Station, Texas; Maricopa County,

Arizona; the Virginia Beach City Public Schools; and the New Mexico

State Personnel Board have gainsharing programs (IPMA - HR, 2006; New

Mexico State Personnel Board, 2006).

Goalsharing Goalsharing is another group incentive plan. Payments are

linked to the achievement of performance goals, which can also include

cost savings (Risher, 2008). Cash awards are a result of the achievement

of strategic goals. It is likely to be most effective in an agency or unit that

has measurable performance goals.

Closing Thoughts on Equity

Despite an organization ’ s best efforts to ensure equity, a number of factors

that affect compensation are outside an agency ’ s control. For example, as

positions demand higher skill requirements, organizations can expect to

pay more for those skills. If skills are in abundance, then employers can

offer less even if those skills are critical to the organization. For instance, school

teachers are often paid less than electricians, despite the greater value of teach-

ers to the school, because unions may restrict the number of qualifi ed electri-

cians, thus driving up their salaries, while there are plenty of applicants

wishing to be teachers. Or jobs with unpleasant or hazardous working

conditions, such as sanitation or public works, might demand higher salaries

because they are necessary to attract individuals to those positions.

Developing a compensation system that meets employee and orga-

nizational goals requires fi ne - tuning. Not all employees have the same

priorities. Today, quality - of - life issues are also considered important by

applicants and employees. To attract and retain employees, organizations

need to offer either competitive wages or other benefi ts deemed important

to employees and applicants, such as fl exible work schedules, career mobil-

ity, a sense of purpose and the opportunity to use their skills, and child care

or educational reimbursement programs.

Executive Compensation and Benefi ts

The compensation and benefi ts provided to executives in public and non-

profi t organizations are often different from the compensation and benefi ts

other employees receive. In the public sector, executives are exempt from