...Plastec Company: A Strategic Compensation Plan Webster University Plastec Company has not had a good compensation plan, and as a result, they have had tremendous turnovers in the company. In an effort to make the compensation plan more effective and competitive, Plastec needs to compare their wage including variable pay and benefits with other employers. Recruiting and retaining machine operators has been a recurring problem for Plastec, and this is a result of lack of professional development in addition to the unattractive compensation plan. The company needs to provide appropriate benefits that cover the middle aged with a mix of employees who are single and others who have families. Paul, the HR manager from Plastec Company has seen employees from the organization express that pay and benefits for employees are not as good as competitors such as Acme’s through several exit interviews. John, one of the managers at Plastec has also heard employees expressing this as well. Paul can identify using some simple methods which can compare Plastec Company pay and benefits with their competitors. Paul will need to determine if the organization will pay for labor below market, at market or above market. With the issue at Plastec Company, one can assume that the organization is paying below market. Benefits such as holiday and vacation with Acme have been perceived better in their organization. Paul can use numerous recourses to determine comparable...
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...Variable pay is compensation linked to individual, group/team and/or organizational performance. Variable pay programs are very poplular, with more than 80% of organizations using them according to a Worldat work annual survey. Variable pay plans attempt to provide tangible rewards, traditionally known as incentives, to employees for performance beyond normal expectations By using variable pay is a better way to attract, retain and motivate employees, said Ken Abosch, business leader at Hewitt Associates during Worldat work’s Total Rewards conference and exhibition in Anaheim, California. The key to motivating the machine operators is to understand what motivates them. Different things motivate each individual. The first thing Plastec can do is to find out what it is that really motivates each of them, by doing this they can asking them, listening to them and observe them. Plastec can designed a variable pay plan for their machine operators around net operating margin. Each machine operator should have a separate target value. As part of the plan, machine operators can be treated to several days of award (rewards), spa treatments, golf outings, paid time off, gifts, monetary, and meals. Machine Operator managers can be recognized for attainment of their specific goals. Also with financial and non-financial rewards this is a win-win for all. In addition financial reward are provided to the machine operators in recognition of their contributions. To increase their...
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...Running head: PLASTIC COMPANY REVISED HR ANALYSIS 1 Plastic Company Revised HR Analyis Learning Team 1 Dr. Kendra Swensen Managing Human Resources September 2,2010 Plastic Company Revised HR Analysi 2 Abstract In this narrative style paper we will be discussing human resource (HR) solutions, methods, and potential problems involving Plastic, a plastic manufacturing company. The company originally started over 15 years ago and has grown to be a diverse organization encompassing employees from different nationalities and ethnicities. After surviving a decline in the industry, Plastic is now looking to possibly offer employment opportunities to new applicants. Newly hired HR manager Paul must include detailed job requirements for applicants while abiding by employment laws and regulations. Paul will also be tasked with prioritizing job training (aside from safety training), updating manager job descriptions, and analyzing the efficient way to recruit new applicants. Keywords: diversity, ethnicities, nationalities, human resources (HR), and job description. Plastic Company Revised HR Analysis 3 Plastic Industry Company has been faced with a decrease in growth and development due to the recent downturn in the overall economy and layoff. Plastic’s employees are primarily Caucasian and African American there are two Russians and on Vietnamese. As a result the Human Resource manager...
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...the current HR director of Plastec uses to work for Utiliscan but left the company for better opportunities. Before he left the company Paul conducted an employee survey that the shared with the top executives of the company. Paul’s survey outlined several crucial areas that need to be addressed by the company to attract and retain employees. The company financial funds are stretched and Paul has been asked to develop a plan to address the problems that will not break the bank. Based on the survey Paul plan needs to focus on improving benefits & compensations, training, pay and performance, and safety bank. These areas are important to the strategy goals of the organization, motivation and performance of the employees. Benefits and compensation are very important to the organization and the employees. A health care analysis has shown that health care insurance can be very expensive and can cost Employees approximately $10,000 and employers can expect to contribute between $2000 -$3000 towards the premium per employee (wwww). Paul plans should look at what type of plans the employees have now and compare them to other plans that could reduce the cost to the employer and the employee. The most prominent ones are changing copayments and employee contributions and Utiliscan should look into using manage care programs such as preferred provider organizations or health maintenance organizations (HMO) and consumer driven health care plans (Mathis & Jackson, 2011)...
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