Compensation Strategies
Business Research Report
Compensation Strategies
Assessment Code: RWT1
Student Name:
Student ID:
Date:
Mentor Name:
Table of Contents
Executive Summary
This report will look at 3 different compensation systems that our company can develop and roll out within our company for our employees and future employees. Compensation is one of the most important and rewarding factors for our employees. Employees rely on their compensation to pay their rent or mortgage, food for their family, vacations, education for their children, and prepare for their retirement life. How compensation is paid can determine the quality of employee you obtain and how long you retain them. This report provides information on different compensation strategies to attract/recruit good talent, improve employee production and retain valued employees.
Annual merit increases help companies to continue being competitive in the work force. Research shows employees want to work for employers that are competitive with salaries. By moving to an annual merit increase system employees will continue to increase production and meet business objectives to receive more compensation. Employees look at merit increases as entitlement and production can remain flat. Our company can increase productivity across the board by tying business goals to merit increases. In order to get the production needed, communication from management will need to take place to set expectations of achieving goals and what the potential merit increase the employee can receive by hitting those goals.
Healthcare benefits can be a deciding factor for many people on whether or not they consider working for our company or if they decide to leave our company. Health benefits provided by the employer shows they care about the employee and it helps get the employee back to work quicker which helps to be more productive. Healthcare is not only a benefit to the employee but also part of their compensation.
Compensation Strategies
Assessment Code: RWT1
Student Name:
Student ID:
Date:
Mentor Name:
Table of Contents
Executive Summary
This report will look at 3 different compensation systems that our company can develop and roll out within our company for our employees and future employees. Compensation is one of the most important and rewarding factors for our employees. Employees rely on their compensation to pay their rent or mortgage, food for their family, vacations, education for their children, and prepare for their retirement life. How compensation is paid can determine the quality of employee you obtain and how long you retain them. This report provides information on different compensation strategies to attract/recruit good talent, improve employee production and retain valued employees.
Annual merit increases help companies to continue being competitive in the work force. Research shows employees want to work for employers that are competitive with salaries. By moving to an annual merit increase system employees will continue to increase production and meet business objectives to receive more compensation. Employees look at merit increases as entitlement and production can remain flat. Our company can increase productivity across the board by tying business goals to merit increases. In order to get the production needed, communication from management will need to take place to set expectations of achieving goals and what the potential merit increase the employee can receive by hitting those goals.
Healthcare benefits can be a deciding factor for many people on whether or not they consider working for our company or if they decide to leave our company. Health benefits provided by the employer shows they care about the employee and it helps get the employee back to work quicker which helps to be more productive. Healthcare is not only a benefit to the employee but also part of their compensation.
References: Better benefits communications can help to improve retention. (2005, April). Managing Benefits Plans, 5(4), 9. Retrieved from http://eds.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=5&sid=09c97eff-2de5-4526-9558-66dcdfc85554%40sessionmgr114&hid=110 Brooks, C. (2012). Monetary benefits play increasing role in luring workers. BusinessNewsDaily, Retrieved from http://www.businessnewsdaily.com/2671-monetary-benefits-lure-employees.html Competitive base pay most important for recruitment. (2007). Employee Benefits, 16. Retrieved from http://eds.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4&sid=09c97eff-2de5-4526-9558-66dcdfc85554%40sessionmgr114&hid=110 Heneman, R. (2002). Strategic reward management: Design, implementation, and evaluation. (p. 382). Charlotte, NC: Information Age Publishing Inc. Retrieved from http://books.google.com/books?hl=en&lr=&id=P0dfB7x4AUMC&oi=fnd&pg=PA379&dq=Merit%20Pay%20increases&ots=4I8hItYJOM&sig=WZlBSghBOC-i2e2WpF5ZaN49AUk#v=onepage&q=Merit%20Pay%20increases&f=false Lamont , K. (2014, January). The high cost of employee retention. Moldmaking Technology Magazine, 17(1), 10. Retrieved from http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4&sid=5456b72b-09e6-4034-8c2e-8439c2dae794%40sessionmgr4003&hid=4211 Leritz Ph.D., L. (2012). Principles of merit pay. Economic Research Institute, 1. Retrieved from http://www.erieri.com/PDF/Principles-of-Merit-Pay.pdf Mack, S. (2014). The advantages of merit salary increases. Global Post, Retrieved from http://everydaylife.globalpost.com/advantages-merit-salary-increases-14699.html Munnell, A., & Sunden, A. (2004). Coming up short: The challenge of 401 (k) plans. Washington, D.C.: THE BROOKINGS INSTITUTION. Retrieved from http://books.google.com/books?hl=en&lr=&id=Xiff_Lmwo7sC&oi=fnd&pg=PR7&dq=Employer+401K+plans+incentives&ots=xmc-YfFnsn&sig=2P9DMHvpga4wkzwFf0NHUT1BpPU#v=onepage&q=Employer%20401K%20plans%20incentives&f=false Plenda, M. (2013, Dec). Matching on the rise. Business NH Magazine, 30(12), 31. Retrieved from http://eds.a.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=4&sid=8918bb97-aa68-4610-b0d0-be38364eb171%40sessionmgr4004&hid=4211