...Compensation and Benefits Plan Companies welcome employees to their organizations through job proposals that should set the tone for a good working relationship. Companies spend tremendous amount of time and resources seeking and attracting high quality talent and people who will hopefully contribute to the long-term success and future growth of the organization. Compensation and benefit packages can be strategic tools that reflect an organization’s commitment to the employee. They should be designed to meet the candidate’s needs and expectations to ensure acceptance. This paper represents a job proposal created by our team for the position of Senior Reliability Engineer at Medtronic, Inc. Various resources and websites were utilized to create a competitive package consistent with Medtronic’s high standards and company policies. Our team included justification of the chosen strategy and also identified potential obstacles and forms of resistance that could impede implementation of the package being offered. Background and Mission of Medtronic, Inc. Medtronic, Inc. was founded in 1949 as a medical equipment repair shop and has grown into a multinational company that has transformed the way debilitating, chronic diseases are treated (Medtronic, 2012). Its mission is to contribute to the human welfare through application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend...
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...Compensation and Benefits Plan Our team has been asked to develop some compensation and benefit recommendations for our client based on their planned expansion to Arizona. The expansion in Arizona will increase the number of employees to 130. Annual revenue is expected to increase the first year to $10,300,000. Currently, there are 41 commercial construction projects in Arizona, and it is recommended the company pursue commercial retail. (Commercial Construction Projects in Arizona, 2013) . The team’s recommendation is based on; market evaluations of similar companies, Arizona pay and benefits laws, and a company structure to create a compensation and benefits strategy. Sundt Construction, a medium sized construction company headquartered in Tempe Arizona, was founded in 1890 by Mauritz Martinsen Sundt. Sundt offers their employees a somewhat generous compensation package which includes not only the basics of retirement and health care, but also added perks such as continuing education (The Sundt Exprience, 2013). Sundt offers a generous health care plan which includes vision care and prescription benefits. Sundt offers several different medical plans to include one plan that has no monthly premium charge (because of employee ownership) for employees and their dependents which is a Preferred Provider Organization (PPO) network. Sundt maintains a wellness where employees receive a $350 credit for health expenses related to improving or maintaining health. Sundt...
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...Compensation and Benefits Plan Compensation and benefits curriculum have a considerable amount of influence in a business’ capability to allure and retain workforce. Understanding the company’s goals, attracting experience candidates, and reward the existing employees will expand benefits and compensations to fit the potential position and work environment. By built on a strong working characteristic, respected core benefits package with insurance, and superior compensations Freeley & Driscoll can expand and fill a new position more effectively. In response to Feeley & Driscoll, P.C.’s (the “Company”) operational goal of 10 percent annual revenue growth, a market development and expansion manager position will be created to lead the Company’s expansion into new markets beyond the New England demographic. In order to attract experienced candidates for the position, the compensation and benefits package must include a variety of options to meet the needs of the employee. At the same time, the proposed package should reflect the Company’s expectations for the position, utilizing a combination of fixed and performance-based compensation, and benefits to ensure the candidate is thoroughly invested in the Company’s success. Since its inception, the Company has built its success through the hard work and dedication of its employees. As a result, the Company has rewarded its employees with the highest salaries in its industry and region. The Company believes a mutually beneficial...
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...Business Solutions Compensation and Benefits Jerome Rutledge, Rahim Shadid, Sridhar Venugopal, Ursula Wester, and Cassandra Woods HRM 531 April 18, 2013 Carolyn Szlaga Purpose The purpose of this plan is to provide fair and equitable compensation for the individual(s) that will be performing the assistant project manager role at Westar Small Business Solutions. This plan clearly describes the total compensation that Westar Small Business Solutions will be providing to those performing the Assistant Project Manager Role. Eligibility This compensation plan applies to full-time, managerial employees performing the Assistant Project Manager Role at Westar Small Business Solutions. This plan does not apply to part-time or contract staff. Goals and Objectives Westar Small Business Solutions believes in the following compensation principles: * To provide fair and equitable compensation to employees. * To reflect the extensive educational and experience credentials required of Consulting Professionals as well as the value their roles bring to the organization. * To offer competitive pay and benefits, within the context of our industry to attract and retain the best talent possible. * To use compensation as a tool to recognize individual merit. * To provide performance-based incentives to encourage excellence and reward employees for his or her contribution to the achievement of organization goals. Compensation Components Total compensation at Westar Small...
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...Compensation and Benefits Plan Based on the job analysis performed previously by Team B for the program manager position, the success of the new engine program would bring in a big jump in sales for the company. Thus, the program manager position is important to ensure a quality completion of the program. Keys to successful compensation and benefits plan are to provide fair compensation to attract and retain employees and to align with the company’s strategic goals. The proposal for the compensation and benefit plan for the program manager is competitively based on U.S. national averages in aerospace industry, company size, education, and experience. The base salary range is formulated by using the Formal Salary Structures (Culpepper and Associates, 2010). They are consistent with aerospace industry standards. The proposed base salary range is between 25% -75% companies offer in accordance to Salary.com. The plan includes benefits that are consistent with company budgeting plan and strategic plan. The compensation and benefit plan is as followings. Salary: The base salary shall be in the range $126, 396 - $154,343. The salary range shall reflect an employee’s work experience, education, and skills as a mid-level program manager. The range is corresponding to the company’s pay grade PM-9 to PM-12. Annually, management will review the employee’s overall individual performance and job responsibilities to make any salary adjustments as necessary. Benefits: All employees are...
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...Compensation and Benefits Plans In week three, the team openly discussed evaluating pay and incentive systems, as well as, direct and indirect compensation topics in their related fields. Feedback revealed two out of the three members believed compensation to be relatively equitable. Working for a publicly traded organization, one member wondered why stock options were not included in her current compensation package. Understanding effective merit-pay systems and what they entail made her realize that stock options are generally offered as incentives to executive level managers who are responsible for achieving a company’s long-term strategic goals. However, the chapter also illustrates smaller firms do offer employee stock-ownership plans (ESOPs) as an additional benefit. She has decided to investigate the issue further. The team’s reflection on an employee’s general attitude toward benefit packages concluded that employees differ in his or her preference for choosing benefit plans characterized as defined-benefit, defined-contribution, and cash-balance plans. Allowing employees the flexibility to select a plan most compatible to his or her individual need benefits both the employer and employee, resulting in greater job satisfaction, employee retention, and costs control. Additionally, the team discovered employees often misunderstand the benefits package offered and fail to take full advantage of its perks. The members agree that employees should take a proactive...
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...assessed for compensation and benefits issues. The Parker Automotive Group and a new and used car dealership and they have three locations in close proximity. The three locations in need of help are World of Ford and Lincoln, Parker Chevrolet Buick, GMC of Alexandria and Chrysler, Jeep and Dodge. The challenges this dealership range from a very high turnover rate, poor benefits, unstructured incentive programs, no recruitment and low retention and down to sexual harassment. An unstructured incentive program has caused hostility and has left many employees feeling under appreciated. For instance at the Chevy Service Department two incentives were given; one was for the technician’s. The other was for the service managers. These two incentive programs ran from January 2012- April 2012. During this period five service employees who did not fall under the two categories were left watching the rest of the staff “win” cash or free lunch of choice weekly for sixteen weeks. Even the Parts Department, which is part of the Service Department, got bonuses for the sales they made. The other staff should have been included to prevent any hurt feelings or worse, losing an employee. Not only are the staff employed my Parker underpaid and underappreciated but they are paying an arm and a leg for health benefits. They also have a high deductible to pay before those benefits come into effect. This leaves the employee paying out of pocket even more for health insurance benefits. With the high...
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...The Effects of a Well-Designed Compensation and Benefits Plan on Employee Behavior The Effects of a Well-Designed Compensation and Benefits Plan on Employee Behavior Compensation can be defined as “all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship” whether directly (compensation) or indirectly (benefits) (Katz, 2012). A strong and competitive compensation and benefits package is a powerful instrument for attracting and retaining the best talent. The development of a flexible compensation and benefits plan has an impact on employee retention and recruiting activities. The goal is to design the compensation and benefits package to attract qualified and talented applicants, as well as retain the current employees that are important and bring value to the organization. Reducing Turnover with a Compensation Strategy HR Function. HR serves in a consultative capacity to the managers and leaders of the organization and is responsible for the implementation of activities or policies in staffing, recruitment, data analysis, reward and recognition, and advising with regard to federal law compliance (Pophal, 2010). The human resource function “serves to align the wants and needs of the employee with the wants and needs of the employer” (Rothwell, Prescott, and Taylor, 2008). Recruitment and retention should be the main focus of HR and if not effectively managed can prove to be a huge risk to the organization...
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...Compensation and Benefits Obstacles Every organization must have a compensation plan no matter how it is delivered, for example it can be written or unwritten, formal or informal. However, there are many different reasons that can present some challenges while devising a compensation plan. When considering what can help identify potential obstacles for a compensation plan, here are some questions to consider. What is the goal/target of an organization compensation system? Boeing feels that a high-performance culture is critical to its future. Boeing wants its employees to be actively engaged in seeking customer focused solutions to grow the business and boost economic profit. Boeing offers employee incentive programs that help boost employee morale. Another question would be will this benefit our employees at Boeing? How are we prepared to compensate them further if they do not agree with the proposed plan? What are the standards for communication policies? This refers to how the compensation plan will be delivered to the employees. Compensation should be based on performance that support’s the organization global growth. Another obstacle to be considered when establishing compensation and benefits would be the effect the economy has on most professions. Economic downturn may require employee to pay more for their benefits in order to offset the health care industry cost. Proactive positioning from HR will help prevent many of these obstacles from happening. ...
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...Career Development Plan Part VI—Compensation HRM/531 Human Capital Management December 20, 2010 University of Phoenix 1 Career Development IV: Compensation Compensation Plan In the challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. Labor commands a high level of overhead for a company; therefore, pay policies, benefits, and compensations are critically important to be evaluated closely because it impacts the way of life for all employees. Developing a workable compensation plan enables both workers and employers to achieve mutual goals. When employers reach set goals, rewards and incentives set forth within the compensation plan are based upon the level of achievement. To succeed in uncertain times, companies must adapt to the needs of current and potential employees. To do this, a comprehensive compensation plan, which motivates its employees, keeps costs at a minimum, and provides equality for all will provide employers with an advantage. To achieve a successful sales compensation plan, the sales goals are defined clearly, realistically, and challenging to the employee. Tracking and measuring goals help to determine performance levels that impact an creating an employee’s pay structure. To do accomplish this, InterClean incorporated a scoring system that includes experiences, education, and other qualifications. The compensation plan for new sales team will consist of the...
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...Career Development IV Compensation Compensation Plan Sherry Martin HRM/531 In today’s challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. Labor commands a high level of overhead for a company; therefore, pay policies, benefits, and compensations are critically important to be evaluated closely because it affects the livelihood and lifestyle of all workers. Ideally, an effective and sound sale compensation plan enables the company directly tie sales activities toward the expected outcome, and these outcomes should be rewarded with incentives and compensation base on the achievement level. Employers that want to succeed in this increasingly competitive environment must have a well-designed compensation plan that motivates employees, controls compensation costs, and ensures equity. The best compensation plans mirror the culture of the employer. To achieved a successful sales compensation plan, the sales goal has to be defined clearly, realistically, and challenging. Performances have to be track closely and measured toward goals. To determine a salary, a pay structure has to be created that will put employees in a grading system which includes experiences, education, and other qualifications. Compensation plan for new sales team department comprise off: • Sales Bonuses-based incentives • For short term incentives: Periodic bonuses (Quarterly) when sales quota was reached. 40 % Percentage off...
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...Different Types of Compensation and the Benefits Rondricka Jefferies September 19, 2012 ACG 4111 Abstract There is a wide range of different types of compensation and other benefits. This paper will focus on three of many, Share based compensation to include stock options and restricted stock, Base Compensation and Pension Plans. Throughout this research project; there will be observance of the accounting treatments and disclosures along with the benefits, advantages and disadvantages to employees, share holders and investors. This will allow and develop a better understanding as to why compensation and other benefits are so important to employers, employees and shareholders. Understanding Different Types of Compensation and the3 Benefits Compensation and Benefits comes in many different forms. The major goal for compensation and benefits is to reward employees for services provided by an individual for the benefit of the organization. It’s a set of programs, aiming to achieve and attract capable workers to a particular business. Compensation and benefits also helps motivate employees towards superior performance and retaining these services for a long period of time (Ricci, Ignacio Human resource management. Website). The three types of Compensation and Benefits analyzed through this research are Shared Base Compensation dealing with stock option and restricted stock, Regular Base Compensation and Pension Plans. Shared based compensation gives a company’s...
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...Subject: Develop a Compensation Plan This memo is to inform the manager of Human Resource of remarkable ideas and rationales for a career development compensation plan for approval. Ms. Johnson, Manager of Interclean Cleaning, will describe a new compensation plan for her new team with Interclean and explain why her pay system will work, describe components of a reward package to motivate her employees to perform well, and describe her compensation plan benefits to individuals and to the company. The compensation plan with the manager’s ideas and rationales are submitted to the Human Resource Department Manager for your approval. First, Ms. Johnson will describe a new compensation plan for her new employment team and explain her pay system telling why it will work. The new compensation plan Ms. Johnson poses for her team gives a list of direct cash payments and indirect payments to make employees reach peak performance. Direct cash payment includes incentives to motivate the team to increase customer satisfaction. Team members with the highest level of customer satisfaction will receive a cash bonus of $200. Interclean sails with an increase in customer satisfaction and business increase. Bonus awards are another cash direct payment employees are capable of obtaining for peak performance. Bonus awards will be given to employee receiving the highest number of sales for the year along with a frame and a special dinner. Ms. Johnson’s plan also involves indirect...
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...Organizational Objectives and Total Compensation in Different Markets Keith Hammond HRM/324 December 09, 2013 Professor Sharon Fletcher Organizational Objectives and Total Compensation in Different Markets There are a number of applicable Federal and State laws that have an effect on compensation within an organization, along with taxes paid on income. The way an organization determines the benefit plans and salaries of its employees are directly related to the guidelines that are produced from certain Federal and State laws. A well known law and one that is at the top of the priority list for organizations to adhere to is the Fair Labor Standard Act. Business organizations should be very familiar with this law. The law deals with the five major laws of compensation. They include minimum wage levels overtime pay, record keeping responsibility and the child labor act (Martocchio, Joseph J (2009). Through the years there have been adjustments made to the laws. Another law closely related to the Fair Labor Standard Act is the Equal Pay Act of 1963. This act restricts the difference in the salaries given to make and also female employees in the same position (Martocchio, Joseph J (2009). The act does not however restrict the system of seniority, the system merit and the system that rewards for performance. The act also does not pay attention to the exempt and non-exempt status of the employees. The laws that exist to protect employee is known as the consumer credit...
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...Learning Team Assignment: Compensation and Benefits Strategies Recommendations Purpose of Assignment For this task, Traci has asked your team to develop compensation and benefits strategies for your client. It is important to understand the relationship of compensation and benefits to achieving business objectives and employee attraction and retention. You will also need to consider the increasing cost of compensation and benefits and appropriate actions management may take to maintain or reduce this cost factor. It is important that any business have a compensation and benefits plan that not only attracts and helps to retain quality employees, but also allows the business to survive financially. Learning Team Assignment: Compensation and Benefits Strategies Recommendations Purpose of Assignment For this task, Traci has asked your team to develop compensation and benefits strategies for your client. It is important to understand the relationship of compensation and benefits to achieving business objectives and employee attraction and retention. You will also need to consider the increasing cost of compensation and benefits and appropriate actions management may take to maintain or reduce this cost factor. It is important that any business have a compensation and benefits plan that not only attracts and helps to retain quality employees, but also allows the business to survive financially. Learning Team Assignment: Compensation and Benefits Strategies Recommendations ...
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