GROUP 1.

ROLE OF GOVERNMENT ON
COMPENSATION MANAGEMENT
WHAT IS COMPENSATION
MANAGEMENT?
 COMPENSATION MANAGEMENT.
• COMPENSATION MANAGEMENT IS A SYSTEMATIC
APPROACH WHICH DEALS WITH
PLANNING,ANALYSING,MEASURING OF
COMPENSATION PACKAGE SO AS TO ENSURE
EQUITABLE DISTRIBUTION OF THOSE PACKAGES TO
EMPLOYEES IN EXCHANGE FOR THEIR WORK
PERFORMED.
 Forms of compensation
• Direct compensation
• Indirect compensation
• Government intervention mostly comes in the public sector.
• The public sector is mainly referred to as a tri-partite form of employment
relationship which constitutes of the employer, employee and the
government. The government then creates various laws that guides the pay
and other packages so as to ensure fair treatment among workers, and to
also provide a means for the low skilled workers to be able to carter for
basic needs..
 WHAT ROLE DOES THE
GOVERNMENT HAVE IN
COMPENSATION
MANAGAMENT?
The Government’s statutory responsibility is to protect the sweating
workers, ensure social justice and formulate and enact legislations to
control exploitation and provide security to the employed persons.
Gender pay gap: The Government has been acting to reduce the
gender pay gap for more than 50 years. The Government Service
Equal Pay Act 1960 introduced equal pay legislation into the public
service. Women were to be paid the same as men for doing the same
work under the same conditions. 
• The government can be seen as an external factor between the
unsettled employers and employees within the workplace, when the
process of collective bargaining was not successful. The
government would then come in to settle such dispute as it relates
to the employees wages, salaries and other benefits, they would
come in form as the: mediator, conciliator, arbitrator and the NIC.
• The organizations and the government act together so as to carry out the
public policy that protects the interest of the employees. The public
policies such as:
• 1. The Minimum Wage
• 2. Workplace Safety
• 3. Health Coverage
• 4. Social Security
• The interest of the government is to ensure that the procedures for
determining pay are fair, safety income for the unemployed and
disadvantaged are sufficient and also that employees are protected from
exploitation.
• The government policy decisions affect the supply and the demand for
labor in the labor market as it relates to the compensation package of
pay(salary/wages) and others.