A company that strives to be competitive in whatever market they belong to will always look for strategic and competitive advantages. Building a market-competitive compensation system is the first step needed to attract, retain, and promote high performing individuals who will help a company reach and maintain that edge over competitors, so it is imperative to get it right the first time: offer compensation that is far above the median wage and the company must lower its bottom line, leaving it less money to reinvest, pay stockholders, etc. Offer too low a compensation package and the company will not be able to attract the high performers it is looking for to drive the competitive advantages further.…
Within this business report, I have analyzed three different employee compensation strategies that I feel could be well executed within our organization. Employee compensation is key to recognizing and rewarding our employees for their performance and contributions to the overall company’s success. Because it is a signficiant factor, we need to carefully evaluate the three options in my report.…
This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.…
Five key elements should be considered when preparing a compensation plan for an organization. They five key elements include the forms of compensation that will be or can be offered, workforce demographics, the business cycle, the compensation philosophy, and legal and regulatory compliance. The forms of compensation has two forms that can be offered direct and indirect compensation. Direct compensation is all tangible rewards of the working relationship, that is, the sum of base pay plus variable pay (Locke, Jones, & Graham, 2010). Pay received in the form of services and benefits is called indirect compensation (Locke, Jones, & Graham, 2010). The product the organization offers the marketplace is the workforce of any service organization. In the business cycle it is critical for top management and HR professionals to match the compensation practices with what the organization is trying to accomplish (Locke, Jones, & Graham, 2010). the compensation philosophy is considered because organization want to pay to wages like their competitor 's but this might not be possible, therefore three approaches for compensation can be taken into consideration which are market-based pay, competency-based pay, and team-based pay (Locke, Jones, & graham, 2010). When managing compensation systems organizations must follow federal, state, and local regulations and reporting requirements. Some of these important regulations are minimum wage standards and hours worked (Locke, Jones, & Graham, 2010).…
Diego María de la Concepción Juan Nepomuceno Estanislao de la Rivera y Barrientos Acosta y Rodríguez, known as Diego Rivera (Spanish pronunciation: [ˈdjeɣo…
A company’s fundamental purpose and objective of compensation is to provide adequate and equitable rewards to employees at a level that matches theirs skills, abilities and contributions to the company (DeNisi, Angelo S., Griffin, Ricky W., 2008, p. 284. Para. 1). Compensation is the human resource management function that deals with every type of reward that individuals receive in return for performing work – including financial and nonfinancial rewards. Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of employee benefits. Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (Cascio, 2006, p.418, Para. 1).…
Compensation packages are determined by organizations of the type of business the business conducts. Compensation packages can consist of financial and non-financial systems like reward programs or some would call it perks and benefits. This study is for a limousine service as a driver in the field and the limousine service starts with an annual rate that has been estimated by surveys of the Bureau Labor of Statistics of a base start of $26,000 and with benefits of the employer that they choose to give. There could be areas of interested if the competitors are starting the base pay the plan for compensation would be to start a slight bit higher or even offer more of a benefit package with health care, retirement plan, and employee perks.…
Throughout the course of this semester, compensation systems and methods have been evaluated to determine how the compensation processes are utilized to attract and retain employees. Compensation is not only a monetary benefit, but also includes indirect benefits such as insurance, paid time off, disability leave, etc. Both direct and indirect benefits make up a compensation package. Within this paper, similar positions from the private, public, and military sectors have been evaluated with like roles and responsibilities to compare the compensation packages. The following positions have been chosen: Chief Financial Officer for private sector; State Comptroller for the public sector; and Director of Army Budget Office for the military sector. Several factors of the compensation system have been included such as the job analysis, job description, comparable work salary survey, market pay line, pay range, a comparison of each position, an analysis of the differences in compensation, and a career suggestion for a young professional. All of these factors make up the compensation system providing data and analysis to define a compensation package for each position.…
Compensation and Colontion was the approach. It wasn’t what was the end result but what was intended. In the final judgment it was written in refernce the” prelimary one with the determintation to free the slaves in states or parts of states still in rebellion against the United Sates as of January 1st and then listed the regions in which the slave “ shall be then, thencefore and forever free.”” (pg333) Although it was not written in the final proclamation about compensation it was amongst a few other things mentioned. I think compensation was in order but sure to the slaves at that time beingn free was worth more than any amont of money they couuld have been given. It was written that they would be allowed to work and earn reasonable…
Internal Consistency – Internal consistent compensation systems clearly define the relative value of each job among all jobs within a company. This ordered set of jobs represents the job structure or hierarchy. Companies rely on a simple, yet fundamental, principle for building internally consistent compensation systems: Employees in jobs that require greater qualifications, more responsibilities, and more complex job duties should be paid more than employees whose jobs requires lesser qualifications, fewer responsibilities, and less –complex job duties. Internally consistent job structures formally recognize differences in job characteristics, which therefore enable compensation managers to set pay accordingly.…
Companies today should mirror their compensation and benefit programs with their long- term business strategy and organizational culture. According to Casio (2010), “Pay systems are designed to attract, retain, and motivate employees” (p.421). The most important objective is fairness or to achieve internal, external, and individual equity; and maintain a balance in relationships between direct and indirect forms of compensation, and between the pay rates of supervisory and nonsupervisory employees. Employers must perform job analysis, develop job descriptions, evaluate the value of job/position in the organization, develop pay structure and pay levels to create competitive employee compensation and benefits (Cascio, 2010).…
Designing a compensation plan is one of the most complex tasks for most organizations as it affects job satisfaction, employee turnover, productivity and the overall company effectiveness. If not properly managed, this may lead to high employee turnover, low productivity, among other problems which is especially true for a large service-oriented firm like McDonald's. McDonald's first-line managers deal directly with customers along with the front-line crew and it is crucial to draw up an effective compensation plan that will keep them motivated to work hard.…
1. Choose a specific job and then describe the types direct and indirect compensation that might be important by referring to Chapter 2 of your textbook and your course syllabus and knowing that you should provide a number of examples.…
Pay Structure: The array of pay rates for different work or skills within single organization.…
That message is important. Compensation packages can be linked to business structure, employee recruitment, retention, motivation, performance, feedback and satisfaction. Compensation is typically among the first things potential employees consider when looking for employment. It is important, therefore, to give a lot of consideration to your business's compensation structure. After all, for employees, compensation is the equivalent not to how they are paid but, ultimately, to how they are valued.…