This paper outlines a comprehensive benefits and compensation plan for a retail organization facing workforce dissatisfaction with its existing rewards structure. It examines three core components: wage and salary structures differentiated by employee role (hourly pay for floor staff, monthly salaries for managers), a two-tiered bonus and commission system tied to individual and store-wide sales performance, and non-monetary benefits including health insurance, flexible scheduling, career development programs, and employee discounts. Throughout, the plan is benchmarked against industry standards and relevant federal and state legislation to ensure competitiveness and fairness across all employee types.
An organization's ability to recruit and retain talented employees requires ensuring that workers are rewarded proportionately for their contributions toward achieving organizational goals and profitability. To achieve this, a benefits and compensation policy must be developed and implemented for all workers. This company has established a compensation policy that offers a full range of conventional benefits — including dental, vision, and medical coverage — in addition to a rewards program that provides incentives based on employee input. However, there are numerous complaints from the workforce that these benefits do not effectively address a growing problem. To resolve this, it is important to develop a benefits and compensation plan that offers packages corresponding to employee type, reflects the organization's culture, and is comparable to what competitors provide.
The current benefits and compensation plan is seemingly ineffective because it does not provide benefits and compensation based on employees' contributions to the company. This plan is also not comparable to similar organizations or competitors, as the workforce is not receiving suitable benefits and compensation. Since this company competes in the retail sector, it employs different workers with various responsibilities and levels of input to organizational operations.
The first type of employee consists of workers who stock shelves to ensure product availability for customers. Their responsibilities include checking shelves, replenishing products that are running low, changing price labels when prices change, and checking dates on product labels (Linton, n.d.). Second, there are cashiers at checkout who operate scanning systems and accept payment from customers in the form of cash or debit and credit cards. Third, there are store operators who handle basic operational responsibilities such as opening and closing the store, organizing the stockroom, and supervising deliveries. Notably, all company employees are employed on a full-time rather than part-time basis, with each worker expected to work between six and eight hours per day.
The first aspect of this benefits and compensation plan is employee wages or salaries based on job responsibilities and input to organizational processes. Employees will be paid hourly wages rather than salaries, because a fixed salary does not reward workers based on the hours and effort they contribute. Since these employees spend most or all of their time on the sales floor, an hourly wage is the most suitable form of compensation. This hourly wage will be established in accordance with industry standards as well as state legislation relating to employee compensation.
Monthly salaries, however, will be used to compensate managers and supervisors with managerial duties. This is largely because managers and supervisors spend less than 20% of their time selling or carrying out non-managerial responsibilities (White, 2014). Given the nature of their duties, a monthly salary structure is more appropriate for this group. Industry benchmarks will also be used to determine suitable incentive levels for managers and supervisors, ensuring that their compensation reflects standards within the retail sector.
"Two-tiered performance incentive system"
"Health insurance, training, and supplementary perks"
The company will adopt a comprehensive benefits and compensation plan that rewards employees appropriately. Together with the monetary benefits, these supplementary and non-monetary benefits will help ensure that employees have packages reflecting their contributions to organizational processes and aligned with industry standards. Employees will receive monetary incentives based on their job level and responsibilities within the organization. To ensure the workforce receives appropriate benefits and compensation, industry benchmarks and federal and state legislation will be used to determine both monetary and non-monetary benefits. These measures will also help ensure that the current benefits plan remains comparable to those of competitors and similar organizations in the retail sector.
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