various compensation issues in aviation industry

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COMPENSATIONAssignment # 1

Various Compensation Issues

Faced by Aviation Industry

Submitted to:

Prof.Maria Nadeem

Submitted by:

Marium Hasan L1s07bbam0051


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VARIOUS COMPENSATION ISSUES IN AVIATION INDUSTRY

Compensation:

Compensation is what employees receive in exchange for their contributions to the

organization. Compensation management helps the organization obtain, maintain andretain production workforce.

So some of the objectives of compensation can be listed in following points.

y Acquire Qualified Personnel:Compensation should be high enough to attain applicants especially the competent

one. Pay levels must respond to supply and demand of workers in the labor market

since employees compete for the wages.

y Retain present employees:Employees may remain quite when compensation levels are not competitive

resulting in higher turnover.

y Ensure equity:Compensation management strives for internal and external equity. Internal equityrequires the pay be related to the relative work of jobs so that similar jobs get

similar pay. External equity means paying the workers what their counterparts in

other firms in the laborer market are being paid.

y Reward desired behavior:Pay should reinforce desired behaviors and actions as an incentive for those

behaviors to occur in future as well. Effective compensation plans reward

performance, experience, responsibility and other behavior.

Compensation objectives are not rules, they are guidelines. Better the objectives are

followed, the more effective wage and salary will be.


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The term Aviation Explained:-

Aviation is a general term including the science and technology of flight through the air.

Aviation also applies to the mode of travel provided by aircraft as carriers of passengers

and cargo, and as such is part of the total transportation system. The world of the airplane,

including the people who manufacture, market, and repair aircraft or who work in alliedindustries, is frequently spoken of as aviation.

Aviation industry

The Aviation industry expands year in year out as people, animals, goods and produce

travel around the globe on a regular basis. As more demands are made on the industry as a

whole, it is very important that there are enough qualified people to undertake the necessary

work involved in helping the industry continue to grow. Due to the nature of the industrys

expansion we have seen an increase in jobs available to people from different backgrounds

and with different skills and experience. And here Aviation Industry is analyzed withrespect to the compensation plans it offers to its employees.

According to the search in aviation industry some of the aviation jobs that are available

include:

y Flight Decky Cabin Crewy Airside Ground Staffy Technical Support Staffy Professional and Executive Staff

Aviation Industry as one of the attractive industries with respect to employment

opportunities in the World:

There are countless opportunities for people with diverse career aspirations to find their

place within the world of aviation. Whether an employee is technically gifted, have

outstanding customer service skills or has a business mind that can advance the

organization he work for, there are plenty of ways for a talented individual in any field to

utilize their skills in this industry. There are also many benefits that come with an aviation

job.

For example working as a Pilot or a member of the Cabin Crew

y Opportunity to travel the worldy Opportunity to meet a wealth of different peopley Opportunity to experience cultures that most people will never be able toy No two days will be the same ( skill variety)


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According to Av jobs.com which is serving aviation industry since 1988, most aviation

companies are committed to assuring that

HR Activities are free of any sort of discrimination:

All HR practices like recruiting, hiring, training, promotion, compensation and otheremployment related programs are provided reasonably to all persons on an equal

opportunity basis without regard to race, creed, color, religion, sex, age, national origin,

disability, military and veteran status, sexual orientation, marital status or any other

characteristics protected by law. This shows that in most of the aviation companies the

compensation issues are free of any sort of discrimination.

Compensations issues are free of Discrimination on any basis:

All personnel actions such as compensation, benefits, transfers, training, and participation

in social and recreational programs are administrated without regard to race, creed, color,

sex, age, national origin, disability, military and marital status or any other characteristics

protected by law in the aviation industry making it more and more suitable from

employees point of view.

Wages Offered:

If it comes to Wages then most federal Civil service employees in the aviation field are

covered by the General Schedule and their salaries vary according to their grade level.

Provision is made for periodic pay increase based on an acceptable level of performance.

Many airline jobs are well paying and offer prestige as well as excitement and fantastic

benefits. This shows that the aviation industry is attractive enough with regard to the

employee compensation to attract the qualified and competent employees to work in.

Benefits

Some common Benefits enjoyed by the aviation employees include:

Sick pay, vacation pay, comprehensive medical, dental, vision and

prescription insurance plans, basic life insurance, basic accidental death &

dismemberment coverage, flexible spending accounts, retirement plan, free

airfare for employee and his or her immediate family on company airline,discounted airfare for employee and his or her immediate family on other

airlines.

Eligibility for most benefits usually begins on the first day of work. Depending on the

position, an airline may provide additional benefits such as employee parking and bonuses.


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Areas of Compensation in Aviation Industry in accordance with employee demands:

Studies of employment in Aviation industry shows that employees of the Aviation Industry

look forward to a number of Compensation factors like

y A flexible scheduley Excellent pay and benefitsy Insurance plany Family travel privilegesy Other incredible travel perksy Special travel discounts

Working conditions in various aspects, a major factor ofE

mployee compensation inAviation Industry:

1. Employees irregular working hours or variable work schedules:-Airlines operate flights at all hours of the day and night. As a result, many workers

have irregular hours or variable work schedules. Flight and ground personnel,

including mechanics and reservation and transportation ticket agents, may have to

work at night or on weekends or holidays. This is the reason why employees need to

be compensated more and in a better way so that they would be able to give the best

of their performance.

2. Working at a place far away fromHome needs Accommodation and othernecessary Allowance:-

Flight personnel may be away from their home bases normally. When they are away

from home, the airlines provide them with hotel accommodations, transportation

between the hotel and airport, and an allowance for meals and expenses. Flight

attendants typically fly from 65 to 85 hours a month. Although the accommodation

and allowance are given but the employees must be given an increase in theseservices so that they do not feel tired and exhausted from their jobs.


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3. Employees Comfort and Safety, an issue to be compensated in AviationIndustry:-

Working conditions in air transportation vary widely, depending on the occupation.Most employees work in fairly comfortable surroundings, such as offices, terminals,

or airplanes. However, mechanics and others who service aircraft are subject to

excessive noise, dirt, and grease and sometimes work outside in bad weather. So if

the environment is worth considering with respect to employees comfort and safety,

it becomes an important compensable factor in aviation industry.

Overall scenario of the Aviation Industry with respect to work and Compensation:-

Working within the aviation industry at any level can be exciting and both personally andprofessionally rewarding although obviously, likes any job, there can be negatives. The shift

work that employees may be required to do can be exhausting and the frequent time spent

away from home and loved ones can be a strain. However, for many people who have

thrived in the aviation industry and will continue to do so for many years to come, the

benefits of working in such a vibrant environment far outweigh the negatives.


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References:

Human Resource Management by Biswajeet Pattanayak, 3rd Edition

http://www.bls.gov/oco/cg/cgs016.htm Retrieved on 10th Nov, 2010

http://www.avjobs.com/careers/detail.asp?RecID=111 Retrieved on 10th Nov, 2010

http://www.jobmonkey.com/airline/ Retrieved on 11th Nov, 2010

http://www.notmlm.com/airline_employees.html Retrieved on 11th Nov 2010

http://www.buzzle.com/articles/career-opportunities-benefits-within-the-aviation-industry.html

Retrieved on 11th Nov, 2010

various compensation issues in aviation industry

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