Benefits Of An Effective Compensation And Benefit System Essay

Benefits Of An Effective Compensation And Benefit System Essay

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Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assuming the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by my city’s largest employer, Holland Enterprises, this paper presents a revised compensation and benefit strategy that suits the firm. This proposal describes how an effective compensation and benefit system could contribute to organizational effectiveness in the firm, the principle components of the revised compensation and benefit system for the company as a large-scale organization as well as a recommendation for each component. Lastly, it provides a clear argument to the already skeptical top managers of Holland Enterprises to increase their compensation and benefit expenses. Currently, Holland Enterprises employs 3,500 employees. Nevertheless, it has lost 25% of its staff. According to exit interviews, the main reason a majority of the company employees have resigned is because of a compensation and benefit system that is perceived to be unfair and uncompetitive in the marketplace. The company is thus facing significant issues with maintaining a smooth operation with some of its major skilled workers having resigned. As such, the right steps should be taken to curb the existing problem.
How Effective Compensation and Benefit System Contributed to Organizational Success
Compensation and benefit strategy plans are necessary in any organization. In large organisation, competition is not only in the market for goods and services but a...

... middle of paper ...

...s an effective compensation and benefits system is likely save extra money for other projects.
The primary benefit to the employees is the rewards they receive from such compensation and benefits system. Nevertheless, employees are likely to experience a great deal of peace of mind and in turn increase their productivity. The employer can relate better with employees who are at peace with the compensation and benefits plan, which implies that a close coordination between the workers and the management would yield better fruits for all the organization’s stakeholders. In this case, the company would face less or zero rejection from its employees (Ashe-Edmunds, 2016). Therefore, there would be no cases of protesting for poor compensation and benefits or job resignation like it is in the case of Holland Enterprises, which has currently lost about 25% of its staff.

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