Essay on Life Relationship in Diverse Organizations

Published: 2021/11/16
Number of words: 2026

Executive summary

In Europe, America, and other developed nations worldwide, employment-related concerns have gotten a lot of attention. Only in the last three decades has attention been paid to HRM in emerging countries. Under the umbrella of international HRM, newly industrialized Asian nations, which are seen as a critical source of competition for Western economies, are attracting attention from both Western and Asian scholars, while less developed countries are not.

There are challenges and accomplishments involved in a diverse workforce. Challenges include perception of employees on pay reflecting on reality, pay playing a role in desire to leave the company, gender and compensation in a diverse workforce, and employee compensation practice on a diverse workforce. Accomplishments include expanding the organization due to innovative ideas from employees, targeting the audience, maintaining company culture, and gaining competitive advantage, becoming profitable due to having employees with better attitudes. The appropriate tools will enable HRM to focus on what matters most–motivating employees and creating a distinctive culture–rather than on manual tasks and transactions. Guidelines for disclosing indirect remuneration received from others connected with their relationship to the plan should be kept in mind by trustees and planning staff. In recommendation, HRM should structure an incentive compensation scheme, use a balanced scorecard, implement indirect and direct compensation systems.

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Employers are increasingly facing a diversity and productivity issue in balancing work/life and work/family connections. The blurring of work-life boundaries due to technology (e.g., mobile phones, the Internet), the availability of work twenty – four hours a day, seven days a week, and an increase in employee complex care needs have contributed to the difficulties of balancing work and personal obligations. Even employees who do not have children want their employers to offer more workplace flexibility to fit their work/life balance desires. Maintaining a healthy work/life balance may provide organizations with a competitive edge by ensuring that their employees are fully engaged and dedicated, especially in growing workplace stress and smaller pay raises. Diversity is expansive in the HR industry, and many life science businesses see the value of having a diverse workforce (Yee et al., 2020). With people working up to 35 hours a week in close proximity, friction is bound to arise. Without some consideration on the part of the company or HRM, workplace diversity may worsen. The purpose of this study is to research challenges and accomplishments involved in managing a diverse workforce and the payment or compensation of workers or customers and to identify whether the employee compensation practices influence workforce diversity.

Life Relationship in Diverse Organizations


Perception of Pay Reflecting on Reality

Even if a firm pays the same or more than other organizations, perceptions about compensation might not match reality. Two-third of people being paid the market rate feel that they are actually underpaid. In a 71,000-person poll, most individuals are unable to estimate how they are being compensated compared to the market. People who are actually paid above market value indicate that 35% was under fair value, 45% at market value, and 21% over market value. Those paid at the market say that 64% was below market value, 30% at market value, and 6% above market value. Those paid below market value say they are paid 83 per cent of market value, 14 percent at market value, and 3% over market value (Harvard Business 2015).

Perception on Whether Pay Plays a Role in the Desire to Leave the Company in a Diverse Workforce

According to a survey of 71,000 people in software compensation company, compensation plays a significant role in employees’ desire to resign. Approximately 70 percent of employees state that they wish to leave because they believe they are underpaid. Thirty per cent of the whole workforce thought they were overpaid, even if they had no intention of leaving (Harvard Business 2015). As a result, the Human Resource Manager failed to adequately explain to the employees that they are being compensated adequately for their abilities. Also, the method of communication utilized to communicate with the staff was ineffective.

Gender and Compensation in a Diverse Workforce

According to the findings, women paid over market rate are 18% more likely than males in the same pay category to think they are underpaid. This is a big challenge that the human resource manager faces in organizations in day-to-day lives (Harvard Business 2015). This is due to a lack of proper communication to the employees regarding the payments of the work done.

Effect of Employee Compensation Practices on Workplace Diversity

Employee remuneration impacts workplace diversity, but it is worth noting that when employees link their pay to their performance, it works as an incentive, encouraging more outstanding performance and enhancing a diverse workforce. Based on the current qualitative survey, participants (55%) feel that responsibility is not equally distributed among all personnel since the essential task is not offered to minorities. Minorities do not have greater prospects, according to the respondent (51%). (Grabara et al., 2014).


Workplace accomplishments are critical because they support HRM’s workforce management goals. Employees from various origins infuse businesses with innovative ideas and viewpoints influenced by their cultural experiences, making a diverse workforce succeed. It is accomplished by ensuring that policies, processes, and safety standards are in place. Organizations seeking to expand or improve their operations in global, state, provincial, and food markets may benefit from a diverse workforce that includes bilingual personnel and individuals of varied ethnic backgrounds. If an organization has a mixed staff, it will understand better target audiences and what inspires them. It will provide them with a competitive advantage and allow them to increase their reach. A diverse workplace better aligns a company’s culture with America’s demographic make-up. A varied staff also improves how employees engage with a more diversified clientele and public, resulting in higher customer satisfaction. Consumer happiness is influenced by employee morale. Customers are more likely to be helped by happy employees who have a better attitude. It leads to a more gratifying customer experience, more customer loyalty, and improved profitability.

Discussion of findings

The perception of compensation does not match reality because employees have differing perspectives on pay. Human resource managers face difficulties when there are too many employee viewpoints. Due to their diverse cultures and experiences, various people take different approaches to the same issue and convey their ideas differently. Individuals who do so are essential to the company since they will keep coming up with concepts and pointing out concerns. In the case of perception on whether pays play a role in employees intending to leave, the organization lacks proper communication. This is a challenge that HRM confronts in the diverse workforce. Inability to comprehend directions effectively might lead to a significant loss in production and team cohesiveness. Gender and age imbalances in companies are addressed through diversity policies. Due to population disparities, individuals might find it challenging to communicate with one another if they utilize slang or specialized types of language. When it comes to gender and remuneration, HRM confronts an enormous difficulty in balancing the happiness of women and men in varied areas, which necessitates effective communication and open and honest dialogues with workers (Butkus et al., 2018). Employee remuneration impacts workplace diversity, but it is worth noting that when employees link their pay to their performance, it works as an incentive, encouraging more outstanding performance and enhancing a diverse workforce.


When a compensation plan is managed incorrectly, it can lead to a schism between personnel and management. Though these obstacles may appear intimidating, with careful planning and hard work, HRM can overcome them. The appropriate tools will enable HRM to focus on what matters most–motivating employees and creating a distinctive culture–rather than on manual tasks and transactions. Guidelines for disclosing indirect remuneration received from others connected with their relationship to the plan should be kept in mind by trustees and planning staff. Even if these additional reporting requirements were not in place, best practices would advise that trustees and plan staff restrict their acceptance of meals, gifts, and other indirect remuneration to instances where ERISA and other governing legislation would not challenge their decision.

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The most suggested step to create diversified workforce management in an organization is to structure an incentive compensation scheme. This necessitates staff referring potential clients simply because it is the proper thing to do. The urge for employees to go the additional mile should be the foundation of any company. They should also look at the incentive program used to reward and discreetly emphasize specific actions. HRM may not inspire workers or individuals to perform the things that are so vital to practice if they do not work incredibly hard to preserve the culture. It is also essential to recognize that ethnic diversity boosts a company’s reputation. Using a balanced scorecard is also critical in employee compensation. This employee’s paycheck is determined by a combination of firm goals, personal goals, and personal assessments (Ross, 2013). When utilizing a balanced scorecard, there are two financial indicators to consider. The first is the percentage annual increase in assets under management. This is due to investment performance as well as donations from new and existing clients. Profitability as a proportion of revenue is the second. This establishes a net margin range. The future ambitions of the firm should fit in neatly if the balanced scorecard is put up appropriately. This is both an advantage and a flaw. Organizations must be careful not to lose sight of essential aspects that may not be captured while paying attention to the scorecard’s sections.

Any company that wishes to use this strategy must make sure it is authentic to who they are and where they want to go. By putting greater weight on Steiff and client KPIs on the scorecard, the company will expand in line with our firm’s culture. The HRM should also place a direct remuneration scheme for the trustees and plan, including the following (McWhirter, 2018): Expense reimbursements for trustees who attend meetings, the cost of meals served at conferences, and stipends for trustees, and plan staff attending awareness sessions. In addition, in managing a diverse workforce, health and retirement benefits and transportation perks should be considered. In a diversified workforce, HRM should also organize or implement indirect compensation. The fund office would not typically have information about amounts received by a trustee or plan employee since a third party provides indirect remuneration. As a result, it is expected that the fund office would request trustees and plan workers following the conclusion of each plan year. Special considerations are also essential because trustees and plan employees should be aware of certain specific rules in their bookkeeping (Robert et al., 2011). For example, suppose a trustee/employee has a general working relationship involving ERISA-related and non-ERISA business. In the case of a service provider, a pro-rata part of the gift should be considered indirect remuneration if eligibility for the benefit depends on a book of business.


Butkus, R., Serchen, J., Moyer, D. V., Bornstein, S. S., & Hingle, S. T. (2018). Achieving gender equity in physician compensation and career advancement: a position paper of the American College of Physicians. Annals of internal medicine168(10), 721-723.

Grabara, J., Kolcun, M., & Kot, S. (2014). The role of information systems in transport logistics. International Journal of Education and Research2(2), 1-8.®

McWhirter, D. A. (2018). Employee Stock Ownership Plans in the United States. In Understanding employee ownership (pp. 43-73). Cornell University Press.

Robert, M, Projansky & Scott, M, Price. (2011). Trustee, Employee Compensation Reporting Demystified

Ross, Levin (2013). Rethinking Employee Compensation. Journal of Financial Planning15(5), 52.

Yee, R. W., Miquel-Romero, M. J., & Cruz-Ros, S. (2020). Work-life management for workforce maintenance: A qualitative comparative study. Journal of Business Research121, 329-337.

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