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Managing compensation systems
Employee retention methods literature review
Employee retention methods literature review
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Holland Enterprises is on a new strategic direction, to attract and retain the most talented employees and to reduce turn over. Human resource department has came up with a new compensation plan. In the propose compensation and benefits system plan , I will explain a new compensation plan for Holland Enterprises, also I will explain the components of the compensation and benefit system plan in order to attract and motivate employees to be productive . In order for the compensation and benefits system plan to be operational, the package should include a necessary level of compensations to fulfill basic needs, equity with the external labor market, equity within the organization (Henderson, 2006).
First Ashley Nuese, director of marketing and sales services at Chicago-based HR. Solutions says 'Organizations should focus on communicating how their philosophies were developed and continuously benchmark their scores on pay satisfaction to remain competitive (Henneman, 2011, para. 1).
Holland Enterprises compensation philosophy is to:
believe that our benefits and recognition system are vital for collaborative industrious opportunities, for improving productivity and for recognizing contributions to the company success. Holland Enterprise compensation philosophy has three primary objectives. These objectives are to:
1) To provide a competitive compensation program; to establish a diverse workforce.
2) Recognizing and rewarding individual and group achievement, contribution, and excellence;
3) Provide a non-discriminatory merit-based compensation program.
To accomplish these objectives, the Holland Enterprise will provide a compensation program that establishes and maintains competitive salary levels within the mark...
... middle of paper ...
...vate and increase performance on the job as well increase employee morale. Increasing the compensation and benefit system will allow Holland Enterprise to reach it current goals.
References
Henderson, R. I. (2006). Compensation Management in a Knowledge-Based World, 10th Edition. Pearson Learning Solutions). . Retrieved from http://online.vitalsource.com/#/books/0558582451/
Henneman, T. (2011, March 2011). Pay ’Philosophy’ Could Prompt Workers to stay [magazine]. Workforce Management. Retrieved from http://www.workforce.com/archive/feature/benefits-compensation/pay-philosophy-could-prompt-workers-stay/index.php
Right ratio between base salary and bonus. (2007). Retrieved from http://hrguide.applezoom.com/2007/09/right-ratio-between-base-salary-and-bonus/
U.S. Bureau of Labor Statistics. (2011). http://www.bls.gov/oes/current/distribution_table.htm
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