Sporadic bonuses across the year also help employee performance to stay more consistent. "Set up a series of smaller rewards throughout the year to motivate ongoing performance excellence. For example, instead of an annual trip, award several three-day getaways for each quarter. Vary the basis for the awards. Top sales might be one category, but so can top research or most diligent. Recognize that several types of excellence motivate your employees to focus on additional areas of their performance" (Berkus, 2012). In this quote, Berkus, truly brings up an important point: some of the bonus methods of compensation are going to depend on the employee hired, as the most effective bonuses will be the ones that are unique to the employee. For instance, some people might just want bonuses in the form of free clothes and shoes. Other people would prefer strictly cash bonuses. There will be some exploration that the employer in this case scenario will have to engage in.
Benefits can be an equally intricate process and one which is essential to the success of hiring a quality individual for the position. "Providing good benefits is an important tool that helps an organization attract and retain quality employees. Unfortunately, many organizations fail to obtain the maximum value from employee benefits. Most employees significantly underestimate the amount of money that organizations spend on benefits" (Stewart & Brown, 2012). Thus, when the benefits package is presented to the prospective employee, it's truly essential to state the monetary value of such a package, or else there is the danger of an employee failing to see how it is part of her compensation package (Stewart & Brown, 2012). There are two forms of benefits that will need to be supplied to the position: benefits required by law and those which will be provided to entice a quality individual and work for employee retention (Stewart & Brown, 2012).
For example, benefits required by law are things like social security...
For instance, "Current regulations require both the employee and the organization to contribute 7.65% (15.3% total) of wages and salary up to a certain amount to the social security fund" (Stewart & Brown, 2012). This benefits package will of course reflect that. Furthermore, a cafeteria-style benefits plan will complete the package, allowing the prospective employee a greater level of flexibility and autonomy in what is chosen. A cafeteria benefits package is often seen as a solution to many of these quandaries and challenges that are faced by employees. The employee needs to be able to select between one taxable benefit such as cash and one qualified benefit; a qualified benefit is not included in an employee's total income (Gordon, 2012). For instance, accident and health benefits, dependent care assistance, group life insurance coverage, health savings accounts (HASs) are all possible, as long as the cafeteria plan doesn't encompass benefits which defer pay (Gordon, 2012).
All of these factors will ideally work together to attract the right individual to the job. Given how stressful the position is, the compensation and benefits package really needs to be as effective and successful as possible.
References
Berkus, D. (2012, July 13). Six Ways to Drive Employee Performance and Motivation. Retrieved from ldrlb.co: http://ldrlb.co/2012/07/six-ways-to-drive-employee-performance-and-motivation/
bls.gov. (2012, May). May 2012 National Occupational Employment and Wage Estimates. Retrieved from Bls.gov: http://www.bls.gov/oes/current/oes_nat.htm#13-0000
Gordon, C. (2012, July 19). Simple Cafeteria Benefits Plans. Retrieved from bizfilings.com: http://www.bizfilings.com/toolkit/news/office-hr/simple-cafeteria-plan-created-by-health-care-act.aspx
Stewart, G., & Brown. (2012). Human Resource Management. New York: John Wiley and Sons.
