Compensation and Benefits
The United States Postal Service (USPS) which has been experiencing periods of stagnant or declining revenue was discovered to have a large issue with their compensation and benefits system. It was discovered that the organization provides its employees with lucrative packages which are much higher than those offered by its private sector competitors. Most of the USPS employees are unionized and the unions have been able to negotiate great packages for the employees with the USPS paying 100% of their employee life insurance premiums as compared to other federal agencies that pay about 33% and also pays 80% of their employee health benefit premiums as compared to other federal agencies that pay only 72%. It was found that an average USPS employee receives $79,000 in compensation and benefits as compared to $59,900 for employees at the same level in private agencies. This data is, however, not adjusted…… [Read More]
This plan will help a company to cope with the challenges of having a high rate of employee turnover since the employees with get satisfaction in their work places from the bonus of their hard work.
All in all, reward and appraisal are important tools used to ensure that employees are motivated and dedicated to their work hence retaining them and improving of the company's productivity. Therefore, every company should have a team in place to take care of its compensation, and benefit plans and while doing so, the company's management should ensure that the employees are for the plan being used, if not it will not have a direct impact on the company's performance.
About.com (2011) How to do a break-even analysis. etrieved 8/4/2012 From: http://biztaxlaw.about.com/od/financingyourstartup/a/breakeven.htm
Entrepreneur (2011) Compensation. etrieved 1/18/2012. From: http://www.entrepreneur.com/encyclopedia/term/82068.html
Gainsharing (2012). Q&a etrieved 20th February, 2012, from http://www.gainsharing.com
Gabris, G.T., & Ihrke, D.M. (2000).…… [Read More]
Compensation Benefit ecommendations
What companies in the relevant market are providing to employees
A perfect compensation package is as different as the present workforce itself is. Indeed, it must be in place for organizations to attract and retain the best employees. Workers vary extraordinarily in age, sex, location, and marital status. They additionally doubtlessly differ in the way they work from home or at the workplace. Using a phone, a computer, or navigating on sales calls or going into the workplace each day (WorldatWork, 2007). These are all things that need serious thinking. In addition, workers working for the same organizations have altogether different sets of responsibilities and sets of skills. The question on whether all representatives should be given the same precise compensation benefits even with the diversity of workers is addressed.
If an organization is attempting to furnish a one-for-all compensation solution, it is more than likely abandoning…… [Read More]
Compensation Practices at McDonald's
McDonald's is an American multinational fast food chain. It was established in 1940 by ichard and Maurice McDonald as a small BBQ restaurant. The current McDonald's started growing globally when a business man ay Kroc purchased this entire fast food chain from the owners and began franchising it to private investors in the local and international markets. McDonald's is headquartered in Oak Brook, United States and currently operates in 119 countries worldwide. Globally, McDonald's has more than 34,000 fast food restaurants, outlets, and stores (McDonald's, 2013).
The major product lines and brands of McDonald's include Big Mac (hamburger), chicken sandwiches, Chicken McNuggets, desserts, Quarter Pounder, French fries, milkshakes, salads, coffee, soft drinks, soups, and a wide range of breakfast items (McDonald's, 2013). The huge scale of operations and extremely large supply chain and distribution network enables McDonald's to serve more than 69 million customers every…… [Read More]
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 to recruit and retain military personnel that are competent and adequately rewarded for the services. The reward scheme should also consider the training and skills and compensation that match the rigors of military life, especially with the view of wartime deployment.
Working in the Military:
As an individual desiring to work in the Department of Defense, my dream job and desire has always been to work in the military as a civilian. Army civilians work in every imaginable profession…… [Read More]
Compensation is a sub-discipline of Human esources Management and has become even more critical for organizations in the 21st century. Compensation, of course, is the salary or pay an employee receives from an organization and may fall into four categories: 1) Guaranteed Pay (fixed), 2) Variable Pay (Performance or results based); 3) Benefits (Medical, etc.), and 4) Equity-Based Compensation (Stock or organizational programs). There are many forms of compensation, many philosophies as to motivational aspects of employees. . Managers tend to look at the compensation platform within their organization and are motivated to satisfy their own needs above the overall needs of the stakeholder contingent. However, in any organization, it is important to measure processes, successes, values, and employee contributions to the overall health of the organization. Certainly, for most organizations, salaries and benefits constitute their largest capital outlay after materials and equipment, and for some, even more than hard…… [Read More]
This problem was mostly raised within the financial sector in light of the credit crisis, but is now also being addressed in other companies as well. The focus as such now falls on responsible governance (Muller, 2012).
Chapter 13 questions
1) Strategic importance of benefits
Today, the dynamics of the business environment are suffering dramatic challenges, emerging from various fields. Customers for instance become more demanding; the domestic and international competition intensifies; the technologies rapidly evolve and there is increased social pressure towards environmental sustainability (Brooks and Weatherson, 2000). In such a setting, it is imperative for the economic agents to rely on their staff members to help address these challenges. Today then, the employees are no longer just the force operating the machines, but they are the most valuable organizational asset (Mayo, 2001). In the creation and implementation of the benefits, it is essential for the employers to consider…… [Read More]
Your job now is to pull together all the information you've completed so far in class and make salary decisions for your team. You have completed Cathy's evaluation and received assignment feedback. This is the first year that you've made salary decisions for this team. Be sure to carefully review the information provided. You may simply type in the cells as the text will automatically wrap. You are required to:
Enter Cathy's appraisal rating (she is last on the list);
Within your budget dollars, make your salary decisions based on performance for your team taking into consideration their Salary Grade and the Pay Ranges identified for the Salary Grades (fill in the Salary Decision Column);
Within your budget dollars award bonus money (fill in the Bonus Dollars Column);
In the green line areas, provide your substantiation and risk analysis for the salary decisions made; and
Identify any items…… [Read More]
Explain the job characteristics theory. How does it tie in with intrinsic compensation?
Job characteristics theory was first introduced by Hackman and Oldham. Later on the basis of this theory, a job characteristic model was proposed which is also known as JCM. The theory focuses on five job attributes which helps in motivating the employees and make them feel satisfied at their job. The five job characteristics are as follows:
Task Identity refers to the task assigned at job that has a defined beginning and an end. This enables a worker to have a complete idea about the job procedure and the set criteria for job evaluation.
Autonomy is the level of freedom permitted to the employee at his or her job. It counts whether an employee is allowed to make changes in the schedule of work and its method or he/she is required to take permission from…… [Read More]
Ford Motor Company
Henry Ford established the Ford Motor company in the year 1903. This was done with the help of eleven other business associates at a time when there were eighty seven other motor companies in the U.S. efore Henry Ford got into the motor business, cars were very expensive and were considered as luxury possessions and that only the wealthy minority could afford them. What set Ford apart from other car manufacturers was his realization that by employing the needed technology, he could make cars for the general public and at a price they could afford. y increasing efficiency, Ford produced a higher number of cars while charging a lower price for them. This propelled Ford to massive success in the car manufacturing business. The revolutionary model "Tin Lizzie" popularly known as "T" was launched in 1908 following twenty years of experiments. With a 20-horsepower, an…… [Read More]
HR Compensation Project Plan
Providing fair and equitable compensation can serve as the backbone for an effective human resources policy that creates high levels of employee satisfaction and reduces employee turnover. Research has indicated that equity-based compensation system, performance appraisal system, effective career planning system and a robust employee participation in the organizations' decisions and actions are among the key strategic HR practices that influence organizational performance (Jimoh and Danlami 2011). However, determining a fair and equitable-based compensation system can be a difficult proposition in some instances.
Yet the risks involved with reorganizing the compensation strategy for employees are overshadowed by the rewards. If a worker perceives that their compensation is both fair and equitable then they are likely not have intentions to quit, be dissatisfied, or look for employment elsewhere. They are also more likely to put forth their best effort which translates into higher…… [Read More]
At the same time, there will be increased amounts of compensation. This will ensure that all employees are treated equally by: receiving a salary that is in line with their skills. Over the short-term, this means that there will be a decrease in earnings and profit margins. However, over the long-term is when there will be an increase in productivity and earnings.
The way that this will affect employees is to give them greater leverage over their roles in the firm. As, they will feel a sense of pride and are willing to go the extra mile for customers based upon the total compensation packages they are receiving. This is the point that they will have an appreciation for their work.
Clearly, Family Dollar is dealing with some major challenges when it comes to their compensation programs. This is because, their manager designation is side stepping the law and increasing…… [Read More]
I am designing the package for a retailing organization in the Seattle. The BLS website highlights the total compensation costs for the Seattle Metropolitan area. Wages and salaries are the largest component of total compensation costs, and these advanced 1.7%, which mirrors the degree to which total compensation costs advanced nationwide over the same period (BLS.gov, 2014). In the West region, average wage and salary amounts to $22.10 per hour and benefits account for another $9.49 per hour, bringing the total average compensation cost to $31.59 (BLS.gov, 2014). The West region is split between Pacific and Mountain, and the costs are higher in the Pacific region. Wages and salaries in the Pacific region are $22.92, and total benefits $10.00 for a total of $32.92. Only the Northeast has higher costs. Wages in King County are higher still, the highest in the state by a large margin, at $1,376 per…… [Read More]
Manufacturing Co was founded in 1899 in Smalltown, Ohio, as a widget-maker for buggies. The founder saw an opportunity in automobiles, and transitioned the business to make parts for Henry Ford, and the company has since become a specialist in steering wheel parts. As the business has evolved, the company opened up factories in Michigan, Ontario and later on in Juarez. Today, the company has closed its Canadian and Mexican plants in order to concentrate production functions in China, which have a cost advantage. The headquarters remains in Ohio and Manufacturing Co is still family run. The CEO, Guy Bossington IV, wants to maintain a family atmosphere at the company, where everybody knows everybody's names. The jobs in Ohio are primarily in marketing, sales, finance and other administrative functions. There is one plant that makes specialized products, and an R&D team. In Ningbo, the company has a factory…… [Read More]
Both candidates are asking for a competitive salary, but there are differences in some of the other compensation pieces that they are seeking. Cassandra is an extra week of vacation, while Malcolm is seeking a new phone every year and paid Internet service at home. The cost of Malcolm’s request is fairly easy to establish in dollar terms. Cassandra’s request for extra vacation time does not come with additional dollar costs, but does come with a cost in terms of opportunity cost representing Cassandra’s lost work time – and the time of anybody who might have to cover her work during this extra week. So while Malcolm has a slightly higher ask for direct compensation because of the technology, it might end up being the lower request given Cassandra’s ask for additional vacation time, which is indirect compensation.
As with the salary ask, there is no difference in…… [Read More]
Compensation and Performance management: Two Sides of the Same H Coin
While it is unquestionably part of a human resources manager or director's job to ensure that the company achieves some level of cost savings -- and definitely cost benefit -- in its human resources expenditures, this does not mean that keeping compensation packages at the minimum possible level is the ideal target to shoot for. The well-being and satisfaction of employees is important not only to ensure ongoing loyalty and productivity, but also for intrinsic and ethical reasons. When making cost-saving decisions in regards to human resources compensation, then, certain steps and measures must be taken.
First, effective appraisals must be conducted to determine where cost savings is appropriate, and where it is unwarranted. This process must begin with a purposeful appraisal design that is in keeping both with legal and ethical requirements and that is explicitly geared towards…… [Read More]
Compensation Components Offered at a Foreign Work Site
The compensation components offered to an employee of a U.S. company with the opportunity to take a job at a foreign work site availed through some form of an insurance plan. An important set of components is always non-insurance based and provides income to the employees at a foreign work site. These benefits can be classified into three major segments:
Loss of job income continuation
Disability income continuation
Accident and health protection
Liability and property protection
A special set of services and benefits known as prerequisites (Henderson, 2006).
All the categories contain various compensation components with various features given to an employee of a U.S. company with the opportunity of working at a foreign work site.
Disability income continuation
Disability can be categorized as temporary, singular, partial, or total. When the employee is unable to work because of some health related problem…… [Read More]
I believe that Keith was entirely justified in insisting that the job, not the person, be evaluated. If a company has established protocol, then that protocol should be followed. The receptionist in question has a boss who is in charge of evaluating her performance on a regular basis; the committee would likely be overstepping its boundaries if they had decided to evaluate a single person, rather than the position they were intended to evaluate. Keith would likely be justified in reminding the other committee members of their responsibilities and duties regarding the committee's purpose.
Initially, Keith was bothered by the possibility of a confrontation at the meeting with certain committee members. It would therefore behoove Keith to approach the situation with care and consideration, while maintaining a sense of balance and humbleness. One thing that Keith does not want to do is approach the other members of the committee…… [Read More]
In the past, Payless was hesitant to determine salary increases on individual performance, because of the possibility of demoralizing employees. However, the company decided to follow other companies, because it helps retain top performers and provides more a greater degree of accountability in the corporate culture (Marquez, 2006).
s a result, at Payless, the average salary increase for high performers jumped from 9.5% in 2004 to 9.9% in 2005, while the average merit increase only rose 0.2% over the same period. Payless' new program requires its 12 business unit leaders to create a "nine box," with each box detailing an employee profile, how the manager should address the employee's performance and growth potential and what the range of the salary should be. One box may have the name of an employee who is out the door for not performing well enough and another box may have a top performer who…… [Read More]
Evaluate whether or not the compensation system at Collegiate Promotions is effective.
If a company wants to introduce a new product to market in a quick way, but has rigid funds they have the option of utilizing an independent sales representative model. This allows a company to use representatives in their business to cut expenses and increase sales over the phone or enter into new markets or territories. Companies use representatives as direct sellers in order to show and eventually sell products in high amounts. Not only is direct selling an economical way to market and spread a good, but it can also help in the recruiting endeavor as well (How to Work With Independent Sales eps, 2011).
The compensation system at Collegiate Promotions is effective for them since it keeps their cost low and yet allows for them to sell a lot of their products. They don't…… [Read More]
Compensation in Wachovia Bank's Base Employee Tier
Bank Teller Pay
Compensation in Wachovia Bank's Base Employee Tier
Banking Industry Practices
etention ates for Tellers
Opportunity Cost for Promotion
Consideration of Drawbacks
Compensation of tellers at Wachovia Bank is closely tied to turnover rates. Employee turnover is costly because resources must be expended to replace employees who leave. ecruitment and training can be expected to be approximately one-third of an employee's salary. In the banking industry, the turnover rate for tellers also impacts the bank's ability to efficaciously cross-sell investment products. High turnover rates of promotable employees contribute to increased expenditures by the human resources department since searches must be orchestrated with outside executive search consultants. The banking industry is in survival mode. In order for Wachovia Bank to survive in this industry, we must take care of our frontline. The frontline of Wachovia Bank is our tellers. A…… [Read More]
To the employer, this insight could indicate the need to avoid routine and maybe to enrich the tasks of customer service agents (Smith and Salvendy, 2007).
3. Additional information needs and usefulness
The job analysis process is highly complex and it cannot be simply based on the day diary of one customer service agent. The job analysis is expected to identify the main features of the job to be performed, of the tasks, as well as the skills required from the occupant of the respective position. In this order of ideas, additional information is required in the completion of a job analysis. The lines below reveal some of the more relevant data that would be required:
The day diaries of more customer service agents in order to collect insights from several employees and as such reduce the risks of subjectivity
The identification of the previous educational attainment levels of the…… [Read More]
At this stage of the interview, we asked Mr. Feldman about the specifics of the evaluation system. We found out that the scope of the appraisal system was that of evaluating the job through three different lenses -- the rights and responsibilities of the position; the means in which the employee is able to comply with his tasks and responsibilities and the appropriateness and drive of the individual employee occupying the respective position. In terms of job rights and responsibilities, these are established internally and specifically for each position. They take a technical side and are assessed twice every year with the aid of charts and measurable data. This process is also used to identify the means in which the employee performs his tasks. egarding the appropriateness of the individual in the position, this is assessed in a more qualitative manner through discussions with the employee, his colleagues, or his…… [Read More]
The current plan is a defined contribution plan, but the employees are not using it effectively. Many are heavily weighted in money market, and over 70% of employees are not even making contributions. Both of these problems need to be addressed.
The first question that should be raised with senior management is whether to offer a defined benefit plan, rather than a defined contribution plan. Part of the reason that many employees do not use the plan is that they probably do not truly understand the plan. A defined benefit plan is much easier to understand for employees because it gives them a set benefit (DOL, 2012). The risk in a defined benefit plan, however, is on the company, whereas with a defined contribution plan the risk falls to the employees. So from the company's point-of-view it is probably better to have the current plan, and maybe we just…… [Read More]
Compensation and Benefits: The Family and Medical Leave Act
The Family and Medical Leave Act (FMLA)
The FMLA came into effect on 5th August, 1993. The Wage and Hour Division of the U.S. Department of Labor (DOL) is responsible for its administration. The law covers all employees in the state, including those in the private sector and a majority of those in the congressional and federal sectors. The law entitles "eligible employees of covered employers to take up to 12 weeks of unpaid leave per year," in order to attend to specified medical and family issues (AFSCME, 2013). This could extend to 26 weeks, over the same period, in cases that involve serious illness or injury. The decision as to when the one-year period should actually begin is dependent on the employer and the policy of the organization. In the past, the FMLA has been amended a number of times…… [Read More]
Brief Overview of Costco's Compensation System
Costco has a unique compensation system within its industry. The company competes as a cost leader, where it features low prices as a means of winning business. Cost leaders typically try to have rock bottom costs throughout their operations, from the supply chain to labor and everywhere in between. These competitors will use their bargaining power to get the cheapest labor possible, bargaining down wages, benefits and other perks. This often results in a poor quality labor pool with high levels of turnover, but these companies accept that as part of having a low cost labor pool and account for that is the design of the low cost business model (Lutz, 2013).
The approach that the company has to compensation is therefore counterintuitive to the way that most of its competitors run their human resources, but there is internal logic to Costco's…… [Read More]
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 exceeding three million units (Joesph, 2003).
Compensation Plan of Ford Motor Company
Association with Ford Motor Company is a fulfilling experience for the workforce. The company offers motivation for exemplary work ethics, opportunities for individual and collective growth that translates into challenges to be met and overcome. The vast range of vehicles produced in the company provides the stimulus for development of the personnel at all levels, as does the cultural and regional diversity of the workforce itself. Ford…… [Read More]
The IRS may also impose a 10% excise tax or a maximum of $10,000 on an officer who knowingly entered into a transaction (Samuels and Shoretz).
When this happens, the official endeavors to enter a rebuttable presumption that the compensation and benefits are reasonable (Samuels and Shoretz 2002). The board of directors or trustees must approve the three criteria for the rebuttal. In the first, the board must be composed entirely of members unrelated to and not beholden to the officer in question. In the second, the board must possess reliable data, comparing its compensation level with those of other organizations in similar situations. This is intended to lead the board to make sure the officer's compensation has comparable fair-market value with others in the geographical area. The data may be secured form reputable and independent surveys and the third requires the adequate documentation of the fixed compensation as its…… [Read More]
Compensation and Benefits Package for a Secretary
A pharmaceutical company has recently hired a new director for its human resource department as part of its initiatives to enhance productivity and organizational success. The company is also seeking to hire a new secretary for the H department and develop an employee compensation and benefits package for this position. This package will be utilized for the position of secretary for the H department once a suitable candidate is hired. Generally, pharmaceutical companies hire educated and highly talented individuals because of the nature of their operations, which requires high academic qualifications. In essence, the need for high academic qualifications for this industry is fueled by the fact that these professionals deal with patients whose needs are constantly evolving. The development of a suitable compensation and benefits package for a H secretary in this pharmaceutical company requires examining compensation and benefits packages in the…… [Read More]
Given the long hours and the large quantity of information the employees at the Fit Stop will have to acquire, it is only natural for the management to offer the a wide series of incentives aimed to increase their performances and ensure the complete satisfaction of customers' needs, all to the overall benefit of the organization. Founder Susan Superfit could offer a fixed payment plan, plus sales commissions, plus other financial and non-financial incentives. She should also constantly analyze the markets as to identify new trends in rewarding the staff but also to identify the strategies implemented by the competition.
Wyatt, W., Compensation Trends in Canada, Watson Wyatt Data Services Canada, http://watsonwyatt.com/lastaccessed on April 19, 2008
Compensation: Outline and Definitions, H Guide to the Internet, 1998, 1999, 2000, last accessed on April 19, 2008
Pay Systems, ACAS, etrieved from www.acas.org.uk/media/pdf/p/0/B02_1.pdfonApril 19, 2008
The Fit Stop, Strategic Compensation in Canada,…… [Read More]
Compensation Strategy for a Limo Service
The compensation strategy and benefits strategy for a limousine service in Austin, Texas will represent an essential component to the overall business strategy. The projected annual net revenue for the first years of the business is a negative fifty thousand dollars. Therefore any potential savings in employee compensation might represent something that could reduce this financial burden. Furthermore, any amount of compensation that would go beyond the planned amount would increase the company's loss. Creating an efficient strategy for compensation and benefits will be exceedingly important in the company's first year because it is expected to operate at a loss.
The compensation and benefits strategy will also be important because it will largely influence the quality of the candidate pool that the company will have to select its employees from. Higher wages will draw more qualified candidates and a lower compensation package might reduce…… [Read More]
Compensation and Differences in Pay
Reasons for Differences in Pay
The reasons for pay differences include:
Good performance that warrants increased compensation - EX, GS
Organization Loyalty - GS, PE
Experience - amount of time with the organization; - EQ
Education and professional qualification level, training, and skills - EQ
Negotiation made when recruiting
Seniority in the office environment - EQ
Need for retaining employee through compensation - PE
Hard work; - EX, GS
Personal traits in commanding respects and motivating others - EQ
Acknowledgment or preferential treatment from a manager.
The difference in compensation resulting from the good performance that warrants increased compensation and hard work draw relevance from the expectancy theory. Expectancy theory argues that employees have an expectation that the effort they put in work tasks, and the performance that yields will be valued. The expectation of valuations of the outcomes influences an individual motivation…… [Read More]
The current compensation philosophy of Lockheed Martin is based on a pay for performance ideal (Hartung, 2010). However, there is more to the issue than just paying for a person's performance. That performance (and pay) is based on the market, and how well the individual's performance contributed to the overall objectives of the company. Its goals are generally very clear, and those employees who work hard enough to help the company showcase and reach those goals are the ones who are going to be compensated at the highest level (Hartung, 2010). While a lower level of performance may not be enough to have an employee fired or laid off, it can be enough to ensure that the person does not receive as much compensation as other employees who work at higher levels on a consistent basis. Despite the high quality of the compensation plan, there is one flaw…… [Read More]
compensation packages and benefit plans which Adobe Systems Inc. offers to its employees against their employment services, good performance at the workplace, and as motivational techniques for their retention and encouragement. The paper also explains the advantages and disadvantages of the key components of these compensations and benefit plans and recommends strategies on how they can be improved for more effective outcomes.
Adobe Systems Inc.
Adobe Systems Incorporated is an American multinational corporation engaged in manufacturing computer software and providing digital marketing and digital media solutions to the individual and corporate clients around the Globe. Adobe Systems Inc. was founded by Charles Geschke and John Warnock in 1983. Its major software development operations are spread in the United States, Germany, Canada, India, China, Switzerland, and omania. The main products of the company include Desktop software (e.g. Adobe Acrobat eader, Adobe Flash, Adobe Photoshop, Fireworks, Adobe Premier, and Adobe Shockwave Player);…… [Read More]
Verizon Compensation Strategy
Verizon Communications is a publicly traded company registered in the United States as a telecommunications and broadband company. It trades under the name Verizon. It is a market leader in the telecommunications industry and strives to provide excellent services that satisfy consumers. Worker compensation has always been an important aspect of Verizon's overall strategy to keep employees motivated and provide excellent service to consumers. In 2010, the company did a review of their compensation strategy with the aim of improving it. The 2010 compensation decisions, designed by a committee and approved by shareholders, took effect in 2011.
Briefly describe the company you researched, its compensation strategy, best practices they are applying, and compensation-related challenges they are facing.
Verizon's compensation strategy is founded on providing fair compensation to its employees. All of Verizon's employees get a base salary that is pegged on market rates and incentives…… [Read More]
New Trends in Employee Compensation and Benefits
This essay examines new trends in compensation and benefits. The essay discusses the impact of benefits offerings for both employer and employee, and reviews recent trends and discusses their significance.
Reasons for working vary from individual to individual, and compensation is usually among the most important reasons. However, many people list other factors that are almost equally important to them. These factors can range from opportunities to develop new skills, to an experiencing a sense of community, to more tangible benefits such as provisions for retirement. Currently benefits programs account for approximately one third of the average worker's total compensation, based on the size, profitability and philosophy of a particular employer. Programs that are effectively designed and promoted work to the advantage of both employers and employees (ish).
Compensation packages have changed significantly over the years. They no longer consist of a flat…… [Read More]
Q12. Describe the impact of legislation on the field of compensation management.
Minimum wage and overtime laws restrict the minimum amount employers can offer to workers; anti-discrimination legislation mandates that employees are compensated without regards to their racial, ethnic, gender, or disabled status.
Q13. Identify the impact of incentives such as bonuses to a compensation program.
For some professions, such as sales and investment banking, bonuses derive the bulk of the individual's expected salary. Bonuses can also be a means of distinguishing social status between employees. Bonuses can also simply be used to encourage higher levels of performance, based upon short-term outcomes.
Q14. Explain how the global market affects U.S.-based companies' compensation.
In a global marketplace, high-quality employees are more 'portable,' but because of the ability to outsource labor, employees may also find their salaries kept artificially low through the availability of lower-cost foreign workers.
Q15. Describe salary/market surveys.
Salary…… [Read More]
compensation strategies companies. For company selected, discuss a 350-word synopsis: • Evaluate compensation strategies executives company. • Evaluate compensation strategies sales forces contingent workers company.ID
Compensation strategies for two companies
Whole Foods, the organic grocery retailer, is one of the few companies that has actually reported garnering positive press as a result of its executive compensation policy. Whole Foods ' "caps the chief executive's salary and bonus at 14 times the average worker's pay" (Clark 2006). This is intended to reinforce the team-based leadership and performance reviews that structure the company's leadership within its stores throughout the nation. However, it has been noted that Whole Foods is not quite as democratic in reality as its written policy might suggest. CEO John Mackey made $1.8 million exercising his stock options, far more than his official salary of $436,000 (Clark 2006). However, his overall compensation is still relatively low, compared…… [Read More]
Compensation Improvement Company ABC
The goal of this review will be to examine the overall objectives of the pay model for ABC corporation, a small manufacturing plant that specializes on developing nanosecond electronic components for select suppliers. As a job analyst my position requires that I evaluate each position in the company and ensure that a compensation structure is developed that is in line with the strategic goals and objectives of the organization which include having the workforce reflect the diversity in the community.
The use of automation and high tech systems has enabled the workforce to remain relatively low, less than 100, and may even substantially reduce the workforce in the upcoming years. The number of employees that must be reduced may be limited if employees are offered alternative forms of compensation rather than pay based incentives, which will decrease the overall financial burden on the company at large.…… [Read More]
Some of these key components, such as work modification techniques like telecommuting, are highly cost effective and companies may be able to implement these components more readily than they will be able to provide more expensive components such as healthcare coverage. Moreover, work modification programs may be able to justify higher levels of pay and benefits for participating employees as a result of increased productivity. For instance, aines and Leathers (2001) note that, "Telecommuting may alter the wage bargain as workers increase their productivity by working at home. Productivity has increased 30% in some telecommuting industries" (p. 307). It should be pointed out, though, that the costs associated with funding and administering an effective compensation and reward program can be prohibitively expensive unless management keeps a close eye on the cumulative effects of these programs. In this regard, Hayes (2006) emphasizes that, "Employers must calculate and pay salaries, schedule and…… [Read More]
Dental care under MCSS fee schedule for Ontario Works adults;
Prosthetic appliances such as back braces, surgical stockings, and artificial limbs (provision, replacement, and repairs);
Wheelchairs and repairs for the portion not covered through ADP;
Hearing aids and batteries (co-payment under Ministry of Health and Long- Term Care's Assistive Devices Program (ADP) for the provision, replacement, and repairs to hearing aids);
Vision care for adults;
Dentures where deemed appropriate;
Cost of completing other medical forms; and Other items may be approved individually based on medical documentation stating the need and the benefits.
7. It is important to carefully define these factors and determine an appropriate number for the organization. The definitions should not overlap, resulting in the same job dimension being measured multiple times. However, the important aspects of each job and what the organization wants from its employees must be included. From there, home country-based compensation is the following…… [Read More]
Caywood, Steven C. (2010). Wasting the Corporate Waste Doctrine: How the Doctrine Can
Provide a Viable Solution in Controlling Excessive Executive Compensation. ichigan Law Review, 109(1), 111-136.
ajor Thesis: This article reviews and seeks a solution for the controversial issue of corporate executives receiving enormous compensation. The article points out that public outcry against grossly, outrageously inflated bonuses and other compensations for executives has rarely done any good, but the group that suffers the most when executives receive such huge compensation are the shareholders. eantime this paper suggests that the "corporate waste doctrine" is one way to limit "excessive executive compensation"; if the corporate waste doctrine were enforced legislatively, the author explains, and executives continue to be paid outlandishly huge bonuses, the stakeholders would have a legal recourse in response.
Clearly it is unfair when an executive -- specifically a CEO -- receives "…roughly 400 times that of an…… [Read More]
Morgan Stanley & Goldman Sachs
Employee compensations has for many years been seen as a type of job benefit package that did one of two things: either reward people for doing good work (merit) or offer them the chance to make more by coming up with creative new business ideas that made the company money (incentives) (Tropman, 2001). Now, however, the issue has changed on a number of fronts. For most companies, the development of menu-based benefit packages have allowed employees -- mostly management employees -- to basically choose from a variety of ways to be rewarded for their work. This remains the practice today for the majority of companies. But for some companies that rely on either technologically or otherwise highly competent people who can work well in a global setting, the issue becomes more about equity -- how well does what they make reflect the value of what…… [Read More]
Offering benefits such as healthcare and even stock options to lower-level employees, a compensation strategy also pursued by Starbucks (a company both literally and figuratively 'green' in its image), is another example of a policy that can benefit both the company and employees -- employees enjoy greater security, while the companies reduce the high rate of workplace turnover that is endemic to the service industry at companies like McDonald's. In fact, as Eric Schlosser observed in Fast Food Nation, fast food companies have often deliberately made life unpleasant for lower-level employees, to reduce the need to offer them promotions, benefits, and higher pay, on the theory that it is easy to train a new worker to operate a cash register. "How can workers look to this industry as a career…when it pays them the minimum wage and provides them no health benefits" (Schlosser 2001, p. 88). hole Foods and Starbucks…… [Read More]
Crafting a Compensation and Benefits Plan
Fishers is a mid-sized manufacturing company out to maintain market leadership through the development and implementation of a compensation plan that meets the needs of the owners, clients, as well as employees. Compensation programs are critical to the effectiveness of the organization as they play a fundamental role in employee motivation, satisfaction, and productivity. The company seeks to achieve two crucial objectives from the implementation of this compensation and benefits plan; i) to reduce turnover, which has been an imminent problem over the last couple of years; and ii) to attract new talent, while retaining and improving the existing one.
The company is at a critical juncture; it can no longer offer the perks of a small entrepreneurial enterprise since it has exceeded the employee threshold for such categorization. Employees have been complaining over what they think is below-market compensation, and…… [Read More]
Fun is Good
The Benefits of Google Inc.
The benefits and compensation system for Google Inc. is both varied and complex. It offers many options for the worker at Google Inc. And is meant to increase employee retention rates within the company. Compensation and benefits systems enable leaders to generate and maintain a chance for an effective mechanism that stimulates a culture of self-empowerment, creative modernization, and self-motivating employees. Google is among the top companies in promoting self-motivation and innovation within its employee pool leading to its continual success and high profits.
Google Inc. has become one of the top 100 companies in the world with profits increasing since its formation in 1998 and its first public offering in 2004. Ever since the mid-2000's, Google has received a steady wave of success. "Companies like Cisco Inc. And Google Inc. have structured their leadership to provide the best environment to motivate…… [Read More]
E-Compensation: Benefits and Challenges
Compensation is one of the basic roles of the Human esource department. This refers to the process of rewarding effort of the employees by assigning salaries and wages for work done. Compensation serves as an appreciation for good work done and as a motivation for more work to be done. E-compensation is the art of making these said payments through the online platform. This is where the human resource managers issue payments for the work done through the online channels available over the Internet. This mode of payment does not involve the handling of cash in any way. All payments are made using the electronic means that the online platform provides. The following study identifies the merits and demerits web-based compensation systems compared to the usual stand-alone or a PC-based method.
This method of compensation involves the use of a fixed method where spreadsheets…… [Read More]
Total Compenstion Statement Memo
Human resource (H) policies and decisions play a crucial role in an organization. They serve as a driver of employee productivity as they directly or indirectly affect employee engagement, job commitment, employee satisfaction, and employee retention. An important H function relates to compensation, which is basically concerned with determining the amount of remuneration and benefits employees get as a result of their input to the organization. Sufficient compensation is crucial for attracting and retaining the right people for the job (Stredwick, 2014). The position of an administrative assistant is without a doubt an important position, underscoring the need for competitive and attractive compensation. As per the U.S. Bureau of Labor Statistics (BLS), an administrative assistant earns an average income of $55,460 per year or $26.66 per hour (BLS, 2017). More specifically, an administrative assistant in the category of "Management of Companies and Enterprises" earns an average…… [Read More]
Crafting a Compensation and Benefits Plan: Looking Ahead in the Modern Workplace
Increasingly, technologically-driven businesses have become more and more reliant upon attracting top talent to gain a competitive edge. Perhaps the most obvious example of this is the Google organization. Google’s Internet search engine is virtually synonymous with searching on the Internet itself. Google offers generous salaries and time off to its employees. It also offers many amenities, such as free food, medical care, dry-cleaning, fitness classes, and even buses from certain common location hubs in the surrounding area. This enable employees to remain focused on work as well as removes many of the inconveniences of modern life (Cain, 2017). To reduce stress levels about balancing personal and professional lives, Google even offers the option of allowing employees to bring pets to work and daycare (Cain, 2017).
Amazon has been taking the lead from Google, also offering catered lunches,…… [Read More]
Savannah Engineering, Inspection and Insurance Company (SEIIC):
Trends in compensation and benefits
Savannah Engineering, Inspection and Insurance Company (SEIIC) is a service-based company and thus must cultivate a strong and committed performance from each and every one of its employees to thrive. However, currently its compensation and benefits programs lacks the ability to reward top performers and merely gives annual pay increases to all employees of 2-5%, regardless of the employee's level of productivity. Seniority rather than performance is given preference in terms of the company's evaluation and rewards system. Its benefits are competitive given that it offers health insurance and other benefits but the structure of the benefits is rigid and only includes such traditional benefits as health insurance, life insurance, retirement plan (defined benefit) and a 401(k) plan (defined contribution). This paper will offer suggestions to improve evaluation and rewards systems to ensure that top earners are adequately…… [Read More]
If this were the case then the provisions of the Equal Pay Act might be of some assistance, although women's lower rates of payment might be explained by reference to factors such as age/work experience/seniority within the workplace or concentration in lower grades which might (but might not) be discrimination-free. Alternatively, women might be doing the same jobs as men, but doing them in female workplaces, with the effect that no comparison would be possible under the Equal Pay Act" (p. 215).
Essentially, what McColgan (1997) is implying is that there could be logical reasons for women earning fewer cents on the dollar than men, most of which have to do with women having spent less time in the workforce than men. While this logic might have applied in much of the last half of the twentieth century, our current generation has long passed the era when women were primarily…… [Read More]
Utley Food Case Study
Utley Food Markets was founded in the 1930s in the St. Louis area. It grew to 86 supermarkets in the Missouri and Southern Illinois area. Up until 1948 it was a family owned company, but then sold and went public, with the Utleys moving out of managerial roles. The company is now heavily unionized, and even those employees who are not union members receiving similar salary increases as to union members. One of the largest concerns is the manner in which employees are reviewed; now typically with the supervisor answering, "how did this employee do in the past year." There is no quantitative data, dialog, supervisory committee, or employee response. This has resulted in a culture of mistrust and suspicion, with the general view that the system is unfair. hen employees complain, supervisors typically respond with a larger than average raise simply to make the concern…… [Read More]
Scenario Background -- Jack Parks is the benefit manager for a division of USA Motors. He is concerned about the level of absenteeism and the "paid absence" agreement negotiated a decade ago. The theory was that by giving workers a full week of paid absence against which they could charge personal absence, they would be encouraged to plan ahead and let supervisors know when they might be gone so that staffing could remain consistent. In reality, workers discovered that by not charging off any paid absence days they could receive a full week's pay in June when the company paid unused benefit hours. Workers had, in fact, come to think of it as a bonus that coincided with summer vacations when USA shut down for inventory in the summer. Parks believes that he can control this abuse of a benefit by a series of percentile deductions on future…… [Read More]
Compensation Purpose & Strategy
Each different compensation strategy comes with risks and benefits, and the company has to balance these. We do not know where Chatham sits in terms of strategy, or in terms of its compensation policy. To determine the optimal compensation policy, and understanding of the implications of each policy is necessary.
If the company lags in terms of compensation, it will struggle to attract candidates. The most qualified candidates will go elsewhere, and there is likely to be high turnover as well. The starting candidates will be weaker, and ultimately the company's productivity will suffer. There are few benefits to paying below market, because lower productivity offsets lower wages. If you pay the market, then the company has to differentiate itself in other ways to attract people. This is possible, and can be a cost-effective means of attracting and retaining good people. Paying above market, especially leading…… [Read More]
economic compensation enough for wrongfully convicted inmates?
The pronouncement of a crime charge against a person marks the begging of a legal battle for freedom of that individual. When the accused stand in court, their sole hope, is to have a plea of not guilty, which convinces the judges to let them free? At the end of any hearing, the prosecutors present their submissions, from which the court makes the final judgment. The expectations are either, a declaration of innocence or guilt. The incarnated have a chance to apply an appeal against the case progressively, until the highest order of court authority (Butler 11). Those declared innocent need and deserve equal treatment as the other free people. This necessitates a call for compensation of the released persons.
The cases of wrongfully convicted inmates
Statistics indicate that, every year, the American prisons releases approximately 700,000 men and women from their custody.…… [Read More]
Total Compensation Methods
Compensation is widely considered as a primary source of motivation for the employees within an organization.in most scenarios people look for jobs which not only suite their creativity and talents but those which compensate them in terms of salary and benefits. Compensation is one of the fastest changing fields when it comes to Human esource as companies are going ahead with investigations of various ways that can be used for rewarding employees commensurate to their performance. Within any organization there is need to ensuring that the turnover ratio is well maintained while at the same time retaining the best employees. Compensation and benefits are two sure ways that a company can use to achieve such things. This paper therefore looks at some of the common compensation strategies that are found within organizations, analyses the impact of various compensation methods used and also highlight how the salaries and…… [Read More]
Total Compensation Methods and Benefits Programs
Impact on employees and organizations
Salary and benefit administration strategies
elationship with organizational culture and performance
Total compensation methods used by the organizations are different in terms of their design and approach. The main objective of the compensation programs developed in organizations is to facilitate employee motivation and provide a cost effective reward system that is beneficial for both employees as well as the business. The business objectives, values, and goals are the basic element of compensation methods adopted in an organization. The total compensation strategy adopted by a business also elaborates the approach adopted by the business to offer benefits for its employees in return to their services. The following sections provide a detailed understanding of total compensation methods and benefits programs and their impacts on employees and organizations. The second most important element addressed in the research is concerning the administration of…… [Read More]
The objective of this study is to examine fair and equitable compensation and to utilize critical thinking in discussing issues from two perspectives and those being the perspectives of both employee and employer. The writer's own concepts will be critically examined concerning compensation and benefits issues.
Defining Fair and Equitable
In order to examine the issue of fair and equitable compensation it is necessary that the words 'fair' and 'equitable' be defined. The word 'fair' is defined by the Merriam-Webster Dictionary as "agreeing with what is thought to be right or acceptable" and "pleasing to the eye or mind especially because of fresh, charming, or flawless quality." (2013, p.1) The word 'equitable' is defined by the Merriam-Webster Dictionary as "dealing fairly and equally with all concerned." (2013, p.1) Therefore, fair and equitable compensation means that the compensation offered by the employer to the employee is fair and equal…… [Read More]
The author of this report is asked to analyze and summarize the compensation plan of Merck Corporation, how it can be better, what they are doing right and what they are doing wrong. Inclusive in that will be an overall evaluation of their current plan, the beneficial ratio of internally consistent and market-consistent compensation systems, an evaluation of the current pay structure, two overall recommendations that the author of this report feels that Merck can and should undertake and the types of employer-sponsored retirement plans and/or health insurance plans that Merck makes use of as compared to that of competitors like Johnson & Johnson and others. While Merck, like most other companies, should always work to fine-tune and perfect their compensation plan, Merck is actually going quite well as made possible by their market and internal research as well as its wealth of resources and options that they…… [Read More]
Compensation strategy is a useful tool that many, if not all, human resources managers can and should use in order to maximize their efficiency and effectiveness within the scope of a larger institution. Compensation strategy allows for the principles and character of the organization to show and demonstrates ability to negotiate the challenging aspects of maintaining a competitive advantage within a given industry.
The purpose of this essay is to explain and highlight the importance of strategic compensation as a component of a the larger corporate strategy within an organization. This essay will examine how pay and different forms of pay can be instrumental in finding new ways to motivate, sustain and increase participatory levels within company organizations and provide a footwork for future successes. This essay will also discuss some of the approaches that may be deemed useful by human resources managers in creating and designing a…… [Read More]