¶ … 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...
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 Plan: The ability of a company to attract and retain the personnel it needs is partly dependent on its ability to provide competitive compensation packages. A company's compensation program is vital for its competitiveness since it's the basis for rewarding employee input. In order to ensure that the workers are effectively compensation, the firm should develop and establish an effective compensation plan. For the Department of Defense, there is need
Employees' Benefit Package Employee Benefit Package Employees' Benefit Package How Would you Handle the Selection of the Employees' Benefit Package? Selection of Employee's Benefit Package With high inflation rate and soaring prices of everything around us, attractive Employees Benefit Package play a vital role for the employees in making the right selection of a job. An employee compensation package consists of two components one is the fixed income in the form of basic salary and
Employee's do not have to sue the employer to get this compensation. It is normally paid through an insurance system that is financed through premiums paid by the employers. Workers' compensation premiums are based upon the accident and illness record of that organization. Obviously, larger numbers of paid claims results in higher premiums. The medical expenses are normally covered in full the under workers compensation laws. This is a
Despite offering such a comprehensive benefits plan, Microsoft has not always been in compliance with laws governing these plans. In the case Vizcaino v. Microsoft Corporation the court ruled that the company denied some of its workers benefits under its Savings plus 401(k) plan (SPP) and Employee Stock Purchase Plan (ESPP) based on the mistaken assumption that they were independent contractors and therefore not eligible for its benefits. Even though these
Compensation Plan Outline Ford Motor Company is the largest manufacturer of heavy commercial vehicles and second largest producer of automobiles in the world. Their range of vehicles comprises 70 different types that include Jaguar, Lincoln, Volvo, Mercury, Aston Martin, and Ford with presence in over 30 countries worldwide. Ford employs over 300,000 employees across the globe. In the United States itself, Ford has an employee strength nearing 100,000 employees and sales
By opening stock options to middle management and employees, it was assumed that better employee performance would be incentivized. As company stock prices go up, it creates a greater spread between the option price when it was granted to the employee and the hypothetical sale price at the end of the vesting period. Consistently better performance over a longer period of time would yield greater reward when the option