Kudler Fine Foods Reward System Case Study
Kudler Fine Foods is committed to designing and implementing an organizational reward system that will promote and incentivize the goals of the organization. Human Resources will examine the challenges in planning and administering a pay system which includes understanding economic and legal factors that determine pay levels, align compensation strategy to general business strategy, develop systematic pay structures, and address key policy issues (Casio, 2006). Kudler Fine Foods organization rewards system consists of three components including direct compensation, benefits, and employee assistance programs.
Pay System
Kudler Fine Foods pay system strategy involves developing a systematic process to assign a monetary value to each job …show more content…
in the organization a base rate and a procedure for increasing the base rate based on merit and inflation (Casio, 2006). Updated job descriptions, a job evaluation method (one that will rate jobs in term of worth) and pay surveys will help create the organization pay structure. Below illustrates the salary grades and wage ranges based on a point-factor method of job evaluation commonly used in the United States (Casio, 2006).
Pay Raises or Incentives The organization’s incentive system objectives are to increase each employee level of job performance. All employees will eligible for a lump sum pay incentive annually. Employees’ individual incentive plans will reward individual who perform above standard. The lump sum pay incentive will be based on the company performance. Spot bonuses are also offered to employees by manager discretion. Spot bonuses are awarded for exceptional performance demonstrated by employee. Spot bonuses will offered in two increment of $50 or $100.
Benefits
Kudler Fine Foods employee benefits are designed to offer each individual personalized and alternative benefit solutions, which includes health and security, paid time off and employee services.
All employees will be enrolled in a term life insurance policy fully paid by organization. Employees are eligible for a life insurance policy amount of one and half times their annual salary. Employee will be given the option to purchase additional life insurance. Kudler will negotiate with healthcare providers and organizations to control the cost of healthcare and to promote preventative care.
The Health Maintenance Organization (HMO) Program will coordinate with a specified group of doctors and hospitals to provide care. Employees are limited to only the specified groups or hospitals the HMO provides. The HMO plan offers no deductible, and copayment fees from $0 to $20 for visits depending on services performed. Employee also will be offered the option to seek their own healthcare providers outside the HMO program for an additional cost. A Preferred Provided Organization Program is also available to employees who want to visit their own doctor and hospital providers. There will a yearly family deductible of $500 and $250 for individual before any medical expenses are covered. The plans will pay 80% on care provided or performed within the preferred provider list. The plan will pay only $70 on care rendered outside the preferred provider
list.
A retirement savings plan offered by the organization will help employee with saving for income after employment. Kudler Profit Sharing Plan (401K) allows the employees to elect payroll deductions to invest in specific investment options such stocks, bonds, and mutual funds. All employee contributions will be match by Kudler by 50%. A portion of the organization’s profits will be invested in each employee’s retirement savings account at the end of the year.
Paid Time Off
Kudler will offer each employee a total of 80 hours of paid vacation time each year. Each employee is eligible for a total 56 hours of paid sick time in event of illness annually. A grievance leave of absence of a total of 48 hours is offer to employee in event of death of a relative. All employees are paid normal scheduled hours for federal holidays observed.
Employee Services
Kudler will provide employee assistance programs to promote work-life balance, assist with wellness, and offer discounts for specific eligible purchases. Employee Services Programs includes:
Childcare reimbursement
Tuition Reimbursement
Financial Planning
Employee Referral
Fitness and Wellness
Counseling
Pay System
Kudler Fine Foods pay system strategy involves developing a systematic process to assign a monetary value to each job …show more content…
in the organization a base rate and a procedure for increasing the base rate based on merit and inflation (Casio, 2006). Updated job descriptions, a job evaluation method (one that will rate jobs in term of worth) and pay surveys will help create the organization pay structure. Below illustrates the salary grades and wage ranges based on a point-factor method of job evaluation commonly used in the United States (Casio, 2006).
Pay Raises or Incentives The organization’s incentive system objectives are to increase each employee level of job performance. All employees will eligible for a lump sum pay incentive annually. Employees’ individual incentive plans will reward individual who perform above standard. The lump sum pay incentive will be based on the company performance. Spot bonuses are also offered to employees by manager discretion. Spot bonuses are awarded for exceptional performance demonstrated by employee. Spot bonuses will offered in two increment of $50 or $100.
Benefits
Kudler Fine Foods employee benefits are designed to offer each individual personalized and alternative benefit solutions, which includes health and security, paid time off and employee services.
All employees will be enrolled in a term life insurance policy fully paid by organization. Employees are eligible for a life insurance policy amount of one and half times their annual salary. Employee will be given the option to purchase additional life insurance. Kudler will negotiate with healthcare providers and organizations to control the cost of healthcare and to promote preventative care.
The Health Maintenance Organization (HMO) Program will coordinate with a specified group of doctors and hospitals to provide care. Employees are limited to only the specified groups or hospitals the HMO provides. The HMO plan offers no deductible, and copayment fees from $0 to $20 for visits depending on services performed. Employee also will be offered the option to seek their own healthcare providers outside the HMO program for an additional cost. A Preferred Provided Organization Program is also available to employees who want to visit their own doctor and hospital providers. There will a yearly family deductible of $500 and $250 for individual before any medical expenses are covered. The plans will pay 80% on care provided or performed within the preferred provider list. The plan will pay only $70 on care rendered outside the preferred provider
list.
A retirement savings plan offered by the organization will help employee with saving for income after employment. Kudler Profit Sharing Plan (401K) allows the employees to elect payroll deductions to invest in specific investment options such stocks, bonds, and mutual funds. All employee contributions will be match by Kudler by 50%. A portion of the organization’s profits will be invested in each employee’s retirement savings account at the end of the year.
Paid Time Off
Kudler will offer each employee a total of 80 hours of paid vacation time each year. Each employee is eligible for a total 56 hours of paid sick time in event of illness annually. A grievance leave of absence of a total of 48 hours is offer to employee in event of death of a relative. All employees are paid normal scheduled hours for federal holidays observed.
Employee Services
Kudler will provide employee assistance programs to promote work-life balance, assist with wellness, and offer discounts for specific eligible purchases. Employee Services Programs includes:
Childcare reimbursement
Tuition Reimbursement
Financial Planning
Employee Referral
Fitness and Wellness
Counseling