HRM/531 week 3

Merit Pay

Compensation and benefit programs for employees need to be an exceptional

offer that is developed to attract and retain the best and talented employees. A merit

pay compensation strategy is used for an incentive pay based on goals and achievements

set by the employer. Compensations that are recommended for this company is a health

benefit package that is managed by the employees. This package consists of medical,

vision, and dental coverage. The medical insurance is PPO and HMO of choice. Dental

coverage has a limit per person of $1500 of service a year. Vision has free yearly eye

exam and discount cost on eyewear. This will make the employees feel proud and valued

to work for this organization.

Conclusion

The fundamental purpose and the objective of the organization compensation are

to provide equitable rewards that are appropriate for employees that highlight from their

abilities, skills, and the contributions to the company. Employee compensation has key

factors and strategies would help this company maintain satisfactory of the employees

and the organization as a whole. A compensation structure and benefit strategy is

analyzed for a medium size organization and market evaluation and position. The

company strategy consists of cost, ability to pay, legal requirements, which motivate and

maintain skilled employees. The plan has provided performance incentives and merit pay

for the employees that are suitable for their employees. The laws of benefits and pay

programs are provided so that the organization has proper and informed choices that would benefit the employer and employees. The compensation and benefit program is

essential to new hires decision to remain employed for the company.