Compensation Plan and Employees

¶ … organization's ability to recruit and retain talented employees requires ensuring employees are rewarded proportionately for their contribution towards achieving organizational goals and profitability. To achieve this, a benefits and compensation policy is developed and implemented for all workers. This company has established a compensation policy that offers a full range of conventional benefits, dental, vision and medical benefits in addition to a rewards program that offers incentives based on employees' input. However, there are numerous complaints from the workforce that these benefits do not effectively address a growing problem.

To address this growing problem, it's important to develop a Benefits and Compensation plan that offer packages that correspond to the employee type, reflects the organization's culture, and is comparable to the company's competitors. Components of the Benefits and Compensation Plan The current benefits and compensation plan is seemingly ineffective because it does not provides benefits and compensation based on the employees' contribution to the company.

Actually, this plan is not comparable to companies that are similar to the organization or its competitors because the workforce is not receiving suitable benefits and compensation. Since this company competes in the retail store sector, it comprises different workers with various responsibilities and input to organizational operations. The first type of employees is workers who stock shelves to ensure availability of products to customers.

The responsibilities of these employees include checking shelves, replenishing supplies of products that are running low, changing price labels when prices change, and checking dates on product labels (Linton, n.d.). Secondly, there are cashiers at the checkout who operate scanning systems and accept payment from customers in the form of cash or debit/credit cards. Third, there are store operators who handle basic operational responsibilities like opening and closing the store, organizing the store room, and supervising deliveries.

Notably, the company's employees are employed on a full-time rather than part-time basis. Each worker is expected to work for a period of between 6 and 8 hours on a daily basis. The first aspect of this Benefits and Compensation plan is employee wage or salary based on their job responsibilities and input to the organization's processes. Employees will be paid hourly wages rather than salaries because salaries do not reward them based on their responsibilities and work.

Since these employees spend most or all of their time on the floor, an hourly wage will be the most suitable compensation. This hourly wage will be established depending industry standards as well as state legislation relating to compensation of employees. However, monthly salaries will be used to compensate managers and supervisors with managerial duties. This is largely because managers and supervisors spend below 20% of their time selling or carrying out non-managerial responsibilities (White, 2014). Given the nature of their duties, monthly salaries will be suitable for managers and supervisors.

Industry benchmarks will also be utilized in determining suitable incentives for managers and supervisors to ensure that their compensation reflects those in the retail sector. The second aspect of this Benefits and Compensation plan is bonuses and commissions based on certain factors like increase in sales. In addition to their wages and salaries, employees, managers, and supervisors will be eligible for bonuses and commissions depending on the overall performance of the company relative to desired sales projections.

The company's employees, managers and supervisors will be involved in establishing specific sales targets over a period of time. If these targets are met or surpassed, they will be entitled to receive bonuses and commissions depending on their job responsibilities and duties. The higher the sales per month, the higher the commission rate for the employees. Moreover, employees will be entitled to bonuses and commissions depending on their performances in comparison with others in the same job level or department.

However, to ensure that such bonuses and commissions do not generate too much competition at the expense of excellent customer service, this company will adopt a two-tiered plan. In this case, employees will be entitled to commissions for meeting/surpassing individual goals and everyone employee will be rewarded when the store realizes its sales goals. The third aspect of the Benefits and Compensation plan is non-monetary rewards that contribute to individual development and growth of every employee.

First, the company will provide additional benefits like health insurance and a full range of traditional benefits. Some of the components in the health insurance program include medical, dental, and vision services. These benefits will be based on industry standards and the specific responsibilities, qualifications, and job level of every employee. An example of traditional benefits that will be offered by the company is flexible work schedules that help in improving employee motivation and contribution to organizational processes.

Secondly, the company will provide career development and growth plans that help improve the knowledge, skills and abilities of employees relative to their job responsibilities and duties. In this case, on-the-job and off-the-job training programs will be.