COMPENSATION

Assignment # 1

Various Compensation Issues

Faced by Aviation Industry

Submitted to:
Prof.Maria Nadeem

Submitted by:
Marium Hasan L1s07bbam0051
 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 and
retain production workforce.

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

 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.

 Retain present employees:

Employees may remain quite when compensation levels are not competitive
resulting in higher turnover.

 Ensure equity:

Compensation management strives for internal and external equity. Internal equity
requires 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.

 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.
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 allied
industries, 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
industry’s 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 with respect 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:

 Flight Deck
 Cabin Crew
 Airside Ground Staff
 Technical Support Staff
 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

 Opportunity to travel the world

 Opportunity to meet a wealth of different people
 Opportunity to experience cultures that most people will never be able to
 No two days will be the same ( skill variety)
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 other
employment 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.
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

 A flexible schedule
 Excellent pay and benefits
 Insurance plan
 Family travel privileges
 Other incredible travel perks
 Special travel discounts

Working conditions in various aspects, a major factor of Employee compensation in

Aviation Industry:

1. Employee’s 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 from Home needs Accommodation and other
necessary 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 these
services so that they do not feel tired and exhausted from their jobs.
 3. Employee’s Comfort and Safety, an issue to be compensated in Aviation
Industry:-

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 and
professionally 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.
 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