Component of Compensation: Motivating Executives to Lead Companies toward Competitive Advantage
Which Component Of Compensation Is Most Essential To Motivate Executives To Lead Companies Toward Competitive Advantage? Discuss Your Rationale?
Table of contents
Index____________________________________________________2
Introduction_______________________________________________3
Factors to consider when drafting compensation packages___________3
Salaries and Wages_________________________________________3
Bonuses__________________________________________________4
Long term incentives________________________________________4
Life and/or disability insurance________________________________4
Health insurance___________________________________________4
Retirement plans___________________________________________4
Time-offs and flexible schedules______________________________4
Miscellaneous compensation_________________________________5
The issue________________________________________________________5
Method of Collecting Information____________________________________6
Analysis/Evaluation of Information___________________________________6
Summary, Conclusions, and/or Recommendations_______________________6
References______________________________________________________7
Introduction
Compensation has long evolved from what was once a perception based on salary to a much more complicated issue that calls for immediate attention to all business owners seeking to employ managers. Things that were never considered in the past are now major determinants of whether or not a manager will consider accepting a position with a certain organization. As Frost (1992) describes, due to the nature in which information is spread, it turns out that employers are not the only ones burdened with the expectation of compensation, but employees too. It is therefore important for employers to make effective considerations when creating their compensation package in order to guarantee they recruit the best managers that will give their businesses a cutting
Table of contents
Index____________________________________________________2
Introduction_______________________________________________3
Factors to consider when drafting compensation packages___________3
Salaries and Wages_________________________________________3
Bonuses__________________________________________________4
Long term incentives________________________________________4
Life and/or disability insurance________________________________4
Health insurance___________________________________________4
Retirement plans___________________________________________4
Time-offs and flexible schedules______________________________4
Miscellaneous compensation_________________________________5
The issue________________________________________________________5
Method of Collecting Information____________________________________6
Analysis/Evaluation of Information___________________________________6
Summary, Conclusions, and/or Recommendations_______________________6
References______________________________________________________7
Introduction
Compensation has long evolved from what was once a perception based on salary to a much more complicated issue that calls for immediate attention to all business owners seeking to employ managers. Things that were never considered in the past are now major determinants of whether or not a manager will consider accepting a position with a certain organization. As Frost (1992) describes, due to the nature in which information is spread, it turns out that employers are not the only ones burdened with the expectation of compensation, but employees too. It is therefore important for employers to make effective considerations when creating their compensation package in order to guarantee they recruit the best managers that will give their businesses a cutting
References: Ford, K. (2000). Fundamentals of employment law (2nd ed.). Chicago, Ill.: Tort and Insurance Practice, American Bar Association. Frost, K. (1992). Fundamentals of flexible compensation (2nd ed.). New York: Wiley. Fundamentals of workers ' compensation. (1999). Mechanicsburg, Pa.: Pennsylvania Bar Institute. Rappaport, A. (1999). New Thinking on How to Link Executive Pay with Performance. Harvard Business Review. Retrieved from http://hbr.org/1999/03/new-thinking-on-how- to-link-executive-pay-with-performance/ar/1 U.S. Department of Labor, Bureau of Labor Statistics. (2014, July 2014) Employee Benefits Survey. Retrieved from http://www.bls.gov/ncs/ebs/