¶ … 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,...
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…
