Compensation/Benefits o Definition: compensation/benefits programs are monetary payments that provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits in order to attract competent employees and improve the quality of their work life. o Scope: goals of compensation polices include rewarding employees` past performance, remaining competitive in the labor market, maintaining salary equity among employees, motivating employees` future performance, maintaining the budget, attracting and retaining new talent and reducing unnecessary turnover. o Workplace Implementation: job analysis must be conducted, job identification must be identifies and job description must be written in order to plan and design …show more content…
Performance Management o Definition: It is a process by which managers and employees work together to plan, monitor and review an employee's work objectives and the overall organizational goals. o Scope: it helps the organization to become more efficient by motivating, training, rewarding and promoting employees. It serves a strategic purpose in linking employee functions with the organization`s vision, mission, goals and strategic plan. o Workplace Implementation: PI specialists identify all the stakeholders, conduct needs analysis and gap analysis, develop a performance culture, develop training materials and plan the organization`s performance measurement system using a business language in the communication between employers and employees. Key Performance Indicators (KPIs) o Definition: they are business quantifiable metric used to evaluate factors that are vital to the success of an organization. KPIs can be net revenue or a customer loyalty
After reviewing Holland’s organizational strategy and exit interviews from the last seven years it is certain that through the new and effective compensation and benefits program created for Holland Enterprises, it will decrease the turnover rate, increase employee satisfaction and engagement and benefit the organization’s overall profits. Through careful consideration of pay structures, incentive awards, internal and external equities and the organizations benefits package Holland Enterprises new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes, “To survive and be successful in a global economy, an organization must be competitive. A major factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it also must vary the kinds and amounts of rewards offered, recognizing differences in individual contributions.” (p. 13)
Compensation Systems are combined rewards to employees for exchange for labor (Lippincott 2010). There are several different types of Compensation Systems, direct financial compensation, indirect financial compensation and non-financial compensation (Lippincott 2010). Direct financial compensation are wages, salaries, bonuses and commission. Indirect financial compensation are benefits such as leave time, retirement plans, training and employee services. Non-financial compensation are things such as employee recognition and a favorable working environment. I conducted interviews with three individuals from three different generations, the Baby Boomers and Generation X.
The purpose of this paper is to explore the use of Merit Pay and Incentives
Offering employee benefits is one way a company must competes in today’s marketplace to retain old employees and attracts new ones. These benefit packages may range from offering basic health insurance to additional discretionary and perk benefits such as vacation and retirement packages. Benefit packages are often a large portion of employee costs and Federal mandates require an employer to carry and offer certain benefits even if they offer nothing else. Federally required employee benefits make up approximately a quarter of the costs associated with employer offered benefit packages. Some of these mandated benefits include Social Security, Worker’s Compensation Insurance, and the Family Medical Leave Act.
To begin, as of September 2010, companies have spent an average of approximately $19,000 per employee to provide discretionary benefits and these benefits account for as much as 30.5 percent of payroll costs. They are offered at the will of each company and employees often view them as entitlements. At the same time, while not recommended, employers reinforce the entitlement mentality by awarding employees regardless of their performance. Next, the three types of benefits include protection programs, paid time off, and services offered by the organization. Protection programs are an incentive to provide benefits for families, as well as promote health. In addition, the benefits guard employees against income loss caused by catastrophic events
A fair and equitable compensation plans should factor in what employees perceive as valuable based on each employee particular situation. Such rewards should provide a balance of intrinsic and extrinsic benefits. Perks and benefits can make or break a company's ability to attract and retain workers in any industry and not just the fast food industry. Providing benefits such as health insurance benefits such as paid holidays and paid vacation time, will show employees that they are valued team member of the company.
Job analysis helps determined selection criterion that is both legal and practical for the selection process. This process also aids in identifying and detailing competencies needed to perform the job as well as any gaps that exist between those competencies and incumbent performance, this is crucial information for training and development. The identifying of concrete standards and cataloging evaluation criteria is another use for job analysis, this can potentially aid with employee appraisals. Lastly, job analysis is critical in making reasonable accommodations for those individuals who are disabled and in the redesigning jobs
In the United States, the term executive compensation has many factors that have driven change in the landscape of executive compensation. Examples of those elements include the turmoil in commodity prices, market volatility, and political pressure for the reform of the executive compensation. Further, the executive compensation in the U.S. beats the average worker’s salary growth by a wider margin. However, when looking at the Sarbanes-Oxley Act which was supported by Paul Sarbanes and Michael Oxley represented a massive adjustment to the securities law. Further due to the Sarbanes-Oxley Act, publicly-traded and privately-held companies are obligated to implement and report in-house accounting controls to the SEC for compliance. Nonetheless, I will expand on whether executive compensation is ethical or unethical in the workplace, as well as if the Sarbanes-Oxley Act too strict or not strict enough as it relates to investors.
Employee benefit means non-salary compensation furnish to workers in addition to their normal wages. This kind of benefits can include health insurance, life insurance, disability income protection, retirement benefits, daycare, tuition reimbursement, sick leave, vacation, and funding of education. Even though providing employee benefits are expensive, but it will keep highly qualified staff and also it will increase the number of new employees entering the company. Employees will become more creative and responsive in the design, timing and generosity of their benefit plans. The advantage for the employees of this benefit is it will improve the productivity of their work, they will be more effective because they are assured of security for themselves and their families (Hrcouncil,
It provides performance improvement practitioners, performance technology consultants, human resource specialists, quality leaders and others interested in improvement with framework foe accountability and integrity. It is based on RSVP – the four essentials for successful performance improvement practices and the first four performance technology standards:
With human resource management becoming the most comprehensive subject when it comes to the management of people in organizations, it is imperative to reiterate the importance of worker compensation in the confines of managing labor. The chief purpose of this term paper is to analyze the Soergel (1) report on the state of employee compensation in the U.S. Based on the report that was presented by the Labor Department of the United States; there were not changes in the patterns of employee compensation in the country. Therefore, it is quite necessary to explain the trend and the implication for work input and the upcoming performance of the labor market as a whole.
Formalized compensation goals serve as guidelines for managers to ensure that wage and benefit policies achieve their intended pur¬pose. The more common goals of compensation policy include to reward employees’ past performance, to remain competitive in the labor market, to maintain salary equity among employees, to motivate employees’ future performance, to maintain the budget, to attract new employees, and to reduce unnecessary turnover. It is important for the organ...
Tomax Corporation has 400 employees and wishes to develop a compensation policy to correspond to its dynamic business strategy. The company wishes to employ a high-quality workforce capable of responding to a competitive business environment. Suggest different compensation objectives to match Tomax’s business goals.
Organizations are working hard in today’s world of business, not only to remain competitive, but also to focus on stability and structure. Employees are the backbone of an organization. It is becoming more important to offer quality HRM programs to staff, in order to support the retention of trained and experienced staff. Employees have always been concerned with salary however, there is a new focus emerging that looks at compensation as a whole entity. Monetary wages are now just as important as other benefits such as paid time off, medical and dental offerings and retirement. This paper will discuss the importance of the total compensation program which includes many aspects, not just salary. Attention must be paid to equal pay, pay
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: