Essay, Research Paper: The New Pay Paradigm

The current business trend of rising dot-com and Internet firms is transforming the job market in the United States. Loyalty has become almost an obsolete concept of the modern day business world. Traditional and "old economy"� business corporations and firms are being forced to alter their traditional ways and revamp their employee benefit packages. A laid back, flexible atmosphere along with a large employee compensation packages, that are offered by many new dynamic corporations appeal to ambitious job seeking individuals. The traditional business firms are losing their most talented, motivated employees. The workers are abandoning their current jobs and finding work in risk taking corporations that offer compensation and incentives such as, stock options, 401k plans and telecommuting options. In order for the traditional companies to compete in the modern job market they have been forced to implement some of the new concepts of employee compensation and reevaluate their current systems and environments.
In today's economic environment of low unemployment and increased job growth, U.S. workers are demanding more and more employee benefits. Traditional companies are becoming increasingly aware of the phenomenon of talented professionals constantly changing careers in search of the most beneficial and convenient job. The employees are departing from the traditional business world to work for new business corporations who offer more compensation towards individual employees. They are in search of the corporation where they will receive the largest amount of benefits a convenient lifestyle. "Old economy"� companies have come to the realization in order to compete in the new job market they need to and create a more appealing atmosphere and options
Stock options and 401k plans appear to be the most appealing aspects of the new wave employee benefits. Financial compensation through stock options is a special recruitment and retaining incentive that is enjoyed by more than 10 million people. Business analysts believe this number will increase as more and more employers extend stock ownership to their workers. Implementing stock options is a system that benefits the employees along with the employer. At the same time, Employees benefit financially from the ownership of stocks. Employers often feel their workforce appears more motivated and enthusiastic. Employees realize that their actual performance on the job affects the value of stocks that they own.
Prestigious corporations such as Walt Disney, AT&T and Dupont have developed a system called "tracking stocks"�. These tracking stocks give the employees the opportunity to profit directly from their own performance. The tracking stock method breaks down a corporation into separate subsidiaries and divisions. The employees in the different divisions own stock pertaining to their division only. This method allows the employees to directly benefit from his or her performance on the job. Employees as well as employers have realized that they both benefit from this method of employee compensation.
Another innovative approach to the new business world is telecommuting. Telecommuting is a work design option in which workers are linked to the workplace by computers and modems. American Express and Deloitte and Touche are amongst the prestigious and traditional corporations who have implemented this new concept. Telecommuting as an optional lifestyle is directly related to development and availability of the Internet. The Internet has virtually transformed the structures of nearly all businesses today. Telecommuting is a desirable option to the younger generation of workers who work to live instead of living to work. A high profile business career no longer entails daily encounters of an intense workplace atmosphere. Telecommuting allows an employees to reside basically anywhere as long as he has access to a computer and modem. A radical example would be a person could live in a hut on a beach in the Florida Keys, but still retain a desirable salary by working through his computer and the Internet. Telecommuting has also influenced women in the business world in a major way. It has allowed women who wish to be mothers to live at home with their children while maintaining their career. Telecommuting has changed the lifestyles that many people in the business world lead.
Another appealing but not as obvious principle the introduction of a casual dress code. Many businesses are changing their dress codes and adopting more casual attire referred to as "business casual"�. This change is very appealing to employees. A relaxed dress code creates a more relaxed work atmosphere. The current trend of businesses firms adopting casual dress codes has influenced retail-clothing companies to establish clothing lines consisting of business causal attire. Clothing retailers such as Eddie Bauer and J. Crew have recently introduced business casual lines. The implementation of a business casual dress code has not directly recruited new employees but most likely has had a larger influence on the contentment of current employees. This implementation has also effected the economy by influencing clothing companies to create new clothing lines.
In the current movement of the rise of Internet companies changing the means of the modern day business world a number of retailers have adopted the old proverb of "if you can't beat them, join them"�. Retailers such as Wal-Mart, K-mart and Nordstrom are establishing independent dot-com branches of their stores to remain in competition with the online retailers. The new online branches of these corporations are established separately from the traditional retail divisions. Traditional retail companies have studied the rising trend of online shopping and have realized it is a legitimate concept. The United States citizens are taking advantage of the new trend. Americans love convenience and online shopping is a very convenient method of shopping. In order to compete with the new form of retail, traditional companies have realized that they need to establish their own branches of online shopping.
With the recent rumors of the threat of the nation's social security balance, employees are also growing concerned when they project their financial futures. An employee is more apt to except a job offer in a company that offers some sort of pension or 401k plan. Employers who offer a valid pension plan will appeal more to the futuristic minded new employees.
Insurance Plans, including medical, dental and vision are also essential benefits that need to be offered. An ambitious individual realizes that healthcare is not cheap and wellness and personal health is important. Whether a firm offers a reliable health care package is a defining factor in the acceptance of a position.
A concept that relates to telecommuting is the idea of flexible hours. Some modern corporations are transforming the typical eight hours a day, five days a week work schedule. Some corporations have adapted a system of scheduling workers three times a week but longer hours. This system has proven to work. If an employee is only consumed by work three times a week his performance usually outweighs an individual who works five days a week and follows a redundant schedule. Along with flex hours, an ample amount of paid vacation hours is also a desirable feature to a position.
Childcare located within the firm is another new concept that has recently been adopted by innovative companies. A child's mother and father is able to bring their son or daughter to work with them. An onsite day-care program allows the parent to easily visit the child throughout the day on breaks. This concept creates less pressure on the parent to spend time with the child resulting with happier employees.
No longer will salary be the primary emphasis when negotiating one's worth as an employee. Now with variations in pay and impressive stock options, rarely will workers view compensation as a simple salary number. Old economy companies are beginning to fight back in the area of compensation and have realized in order to remain on top they have to innovate and change with the changing business world. If they can offset the financial enticements offered by many dot-come companies by implementing their own enticing packages then eventually the trend of losing gifted employees will be one less worry.