...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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...of why many suggestion plans have failed? Student Answer: - employee apathy - failure to recognize contributions - management lacks interest - union members block suggestions through committee action 4. Which one of the following is not a benefit to the employer when offering an ESOP? Student Answer: - maintains a stable work force - owner can sell stock to a friend - results in a dilution of value of the stock - ESOT can borrow money under favorable conditions 5. In contrast to compensation systems in the private sector, those for government employees are less likely to include use of Student Answer: - wage surveys - job descriptions - job evaluation - financial incentives 6. Which one of the following statements is not true regarding a defined contribution plan? Student Answer: - most pension plans are defined contribution plans - crucial to a defined contribution plan are investment and management skills - employers assume the investment risk - most plans have less than 100 participants 7. Which of the following is not true about a well-designed incentive scheme? Student An...
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...employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast at least three compensation strategies and determine recommendations for how they may be implemented within your organization. Name: Henry Rivera I.D. #: 000318961 Reference Title Finding #1 Godfrey, W. (2013, January). Compensation Strategy for Success. Prezi. Retrieved from http://prezi.com/j9k9_m_2qiwn/compensation-strategies-for-success/ Sager, Suzanne. (2011, September). Merit Pay Most Often Used in Compensation in Public and Academic Librarians. Library Worklife. Retrieved from http://ala-apa.org/newsletter/2011/09/01/merit-pay-most-often-used-in-compensation-for-public-and-academic-librarians/ Ojimba, E. (2004, November 15). Salary Basics – Developing a Strong Compensation Strategy. Salary.com for Business. Retrieved from http://www.salary.com/Small-Business-Advice/advice.asp?part=par410 Finding #2 McGladrey. (2011). Lessons from Recession Increasing Focus on Incentive Compensation Programs. Retrieved from http://mcgladrey.com/Perspective/Lessons-from-recession-increasing-focus-on-incentive-compensation-programs University of Wisconsin – Green Bay. (2013, April 9). Compensation Philosophy. Retrieved from http://www.uwgb.edu/hr/documents/CompPhilosophy0401.pdf Finding #3 Gerhart, B., Milkovich, G.T., & Newman, J.M. (n.d.). Compensation Strategy. Answer, McGraw Hill. Retrieved from http://mhanswers-auth...
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...Abstract The intent of the paper is to examine current trends in the most commonly defined contribution retirement plan, the 401(k) plan. It will outline the best course of action to achieve an effective plan and maximize employee participation. This paper will review current mandates regulated by government agencies and explain the importance of remaining in compliance. Finally, the paper discusses best practices for implementation, as well as the best ways to promote a 401(k) plan within your organization. Throughout the process the details of the 401(k) plan at Tampa Bay & Company, a small sized organization, will be compared to other non-governmental company 401(k) plans to highlight specific examples and draw comparisons. Overall 401(k) Trends In response to the economic downturn there has been an increasing surge of employers who are lowering benefits associated with 401(k) plans. The most common trends are employers reducing the amount of match, reducing the portion of the match, or eliminating the match altogether. Over the past couple of years several surveys have been completed by investment firms, revealing that the number of employers who have decreased company contributions is on the rise. Some surveys show as low as a 7% decrease, but the majority of surveys claim that the amount is closer to 25% of employers who decreased matches or ceased employee contributions all together. Nearly two-thirds of employers still continue to provide matching contributions...
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...thousand). This means the advertiser pays for every thousand times the advert loads on the publisher’s page. This is how a campaign is normally priced when brand awareness or exposure is the primary goal. The advertiser and the publisher negotiate a fixed amount that the advertiser will pay for every 1,000 times an ad is shown. CPM is a very simple payment scheme, assuming the two parties can agree on a method for counting impressions. There are often stipulations in the agreement, such that the ad can only be shown on certain pages of the publisher’s site, or can only be shown on pages with a limited number of other ads. In a CPM relationship, the publisher is primarily concerned with maintaining a high-quality audience that has well defined interests or characteristics. The advertiser is primarily concerned with creating a message that will be noticed by their target audience, because they pay for the impression whether or not the user actually sees the ad. In general, the more knowledge a publisher has about a particular audience, the higher the CPM that can be charged, because the advertiser is able to more clearly know who their message is being delivered to. One prominent weakness of CPM advertising lies in the fact that the advertiser is only getting value if the user actually sees the ad. If the user doesn’t notice the ad on the page, the money the advertiser paid is wasted. Another weakness is that it is difficult for an advertiser to prove that...
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...Total Compensation Methods Paper Total Compensation Methods Paper In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio. Compensation Methods “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following: • Commission • Overtime • Bonus • Expense Allowances ...
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...Bailey DeVry University Professor: Patricia Meunier-Muenks HRM-430-67386 Compensation & Benefits Compensation Challenges for Wisconsin Electric April 16, 2016 Executive Summary The point of this paper is to look at the compensation challenges inside of Wisconsin Electric (WE Energies) and make a pay methodology that will benefit the organization, as well as the representative. With the steady change in today's business world, to have an upper hand makes it troublesome for managers to pull in and hold the most skilled representatives. Recognizing the organization's compensation procedure guarantees the organization offers the right pay and pay increases in compensation to keep top employees. When we hear the word compensation we consider paying a worker for their work performed, however, there is substantially more to compensation. Compensation and benefits, "incorporates not just compensation, but also the direct and indirect rewards and advantages the representative is furnished with consequently for their commitment to the organization. To decide compensation, companies should build up a pay and compensation program that diagrams a fair process for repaying workers" ("Compensation and Benefits," n.d.). This approach is a critical piece in helping HR to deal with staying aggressive and successful in the worldwide business sector. All through this paper we will talk about the compensation and benefits methodology of WE Energies and recommendations on the most proficient...
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...The Impact of Compensation Practices February 20, 2011 “The ultimate goal of a pay system is to align the goals and interests of employees with the goals and interests of the organization” – Robert L. Heneman The Impact of Compensation Practices The business arena is ever changing. Where people work, how they work, the relationships in the workplace and compensation for their work continues to change. Hence, “It will be the challenge of compensation professionals to devise ways to reward and motivate employees who work under increasingly flexible arrangements” (Bennett, 1995). Most people interchange and have the perspective that pay and compensation are the same when in reality, compensation is more than just monetary rewards. Compensation is often misunderstood, and can also be misapplied. More often than not, it is out of synch with the values and processes of an organization. This is because despite continued organizational changes, the actual strategies for administering and implementing compensation is misaligned with the rapid changes in the company. “Pay can no longer be seen as a mere expense and cost of doing business, but instead must be viewed as an investment that is closely linked to the long-term success of the organization” (Flannery, et. al., 1996). As Cable and Judge (1994) note, “compensation systems are capable of attracting (or repelling) the right kinds of people because they communicate so much about an organization’s philosophy,...
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...2011 Technical Summary IAS 19 Employee Benefits as issued at 1 January 2011. Includes IFRSs with an effective date after 1 January 2011 but not the IFRSs they will replace. This extract has been prepared by IFRS Foundation staff and has not been approved by the IASB. For the requirements reference must be made to International Financial Reporting Standards. Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees. The objective of this Standard is to prescribe the accounting and disclosure for employee benefits. The Standard requires an entity to recognise: (a) a liability when an employee has provided service in exchange for employee benefits to be paid in the future; and (b) an expense when the entity consumes the economic benefit arising from service provided by an employee in exchange for employee benefits. This Standard shall be applied by an employer in accounting for all employee benefits, except those to which IFRS 2 Share-based Payment applies. Short-term employee benefits Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service. When an employee has rendered service to an entity during an accounting period, the entity shall recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service: (a) as a liability...
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... Its ability to learn, decide and adapt to the external environment made CR attractive to regulators, researchers, academia, politicians and the industry. CR promises to bring a paradigm shift in spectrum management policies from command-and-control regime to dynamic and opportunistic spectrum access. Despite more than a decade of research in the CR area, there are too little CR systems ready for the market. This lack of ready CR systems may reflect an overemphasis in the CR literature on theory and simulations with less work done in experimental-basedresearch and publications. In order to fast-track the real-life deployments of CR systems, the research community is now focusing on the development of CR platforms. With different software defined radio (SDR) packages and hardware available, it is confusing to decide which one to build or use. The objective of this paper is to study the design of CR platforms making use available SDR software packages and hardware. Our conclusion is that CR research should now focus on experimental-based results using real-life CR platforms in order to realize market-ready CR systems. Cognitive radio (CR) technology has become one of the hot research topics in wireless communications network over the past twelve years. CR is an intelligent wireless communication system capable of changing its transceiver parameters based...
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...is being used to detect and adjust to changing communications constraints in the field. This automatically changes to the frequencies and interfaces needed. "Cognitive radios react to environment for better public safety communications." (National institute of justice, Dec 11, 2012, para. 1) Radios were once built using analog electronic parts and circuits that handled signal processing. Technology has advanced exponentially over the past few decades with a new era of digital technology. Now a days radios have become more like computers. Another important factor in this digital development is the cost. Digital parts and circuits are much less expensive than analog. Analog can mostly do a few tasks, digital can do multiple tasks as defined as its software. This new cognitive radio will assist law enforcers in the field in many ways. It will be programmed to recognize a particular frequency that has been overloaded with traffic and it will automatically find and switch over to an alternative frequency without the operator doing it manually. The cognitive radio is aware of its own environment, it knows its own capabilities and limitations as well as its operator’s needs. These radios are running under an engine called cognitive engine. A software package that does as many things as a human would do. Allowing law officers to do their primary job. SDR is a type of software...
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...MASTER IN BUSINESS ADMINISTRATION ------------------------------------------------- (GENERAL MANAGEMENT) ------------------------------------------------- ------------------------------------------------- MGT6033: COMPENSATION & BENEFITS MANAGEMENT ------------------------------------------------- ------------------------------------------------- COURSEWORK / ASSIGNMENT I ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Prepared By: Lim Chee Seong (IC: 661007-08-6109) ------------------------------------------------- (Student ID: PACE 024747) ------------------------------------------------- ------------------------------------------------- Lecturer: Dr. Perema Kumari S Ponnampalam ------------------------------------------------- ------------------------------------------------- a) Compensation management as one of the important link to the human resource management, has greatly...
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...HRM 531 Week 2 Quiz Correct answer in capital letter 1. At a comprehensive point of view, a(n) _____ includes anything an employee values and desires that an employer is able and willing to offer in exchange for employee contributions. a. competency-based pay system b. employee stock ownership plan C. organizational reward system d. merit-pay method Organizational reward systems include both financial and nonfinancial rewards for employee contributions. 2. ___________ bridge the gap between organizational objectives and individual expectations and aspirations. a. Financial systems b. Corporate compensation systems c. Employment practices D. Rewards Organizational reward systems and compensation systems design involves working out tradeoffs among somewhat seriously-conflicting objectives. 3. Reviews of both laboratory and field tests of _____________ are quite consistent. Individuals tend to follow the equity norm and to use it as a basis for distributing rewards. A. equity theory b. the external labor market c. organizational needs d. the internal labor market Pay systems must be seen as adequate and equitable if they are to accomplish the objectives that management sets for them. 4. In labor economics, __________________ theory holds that unless an employee can produce a value equal to the value received in wages, it will not be worthwhile to hire that worker. A. the marginal productivity b...
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...Organizational Objectives and Total Compensation in Different Markets Compensation laws are created to protect employees within an organization. Unsure of legal obligations in designing a total compensation plan, a client needs an explanation on how certain laws and regulations affect total compensation in their organization. The client’s organization employs 200 people, is a federal contractor, and operates in the biotech industry. Laws and Regulations The compensation laws and regulations are almost the same in all industries. In the case of a company that works in the biotech industry, special care concerning the compensation plan is required. This is because of the fact that this industry is believed to be involved in special hazards to health and security and is also inclusive of some revolutionary implications, moral, and ethical issues. The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay: A) The Fair Labor Standards Act (FLSA): It is one of the most important legislations concerning the total compensation plan for the small business owners and companies. It involves five major compensation laws that administer minimum wage, equal pay, overtime pay, child labor, and record keeping requirements (Martocchio, 2009). B) The Equal Pay Act (1963): This law is an amendment to the FLSA and restricts any kind of discrimination based on sex for men and women working at similar jobs and in...
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...following: Discuss how benefits contribute to an overall compensation plan. The total wage cost of an employee to the organization is far more than the pay rate of that employee. Likewise, the total compensation reward of the employee exceeds his or her take-home pay. Total compensation consists partly of the pay of the employee and partly of a set of other rewards that are loosely called benefits. The addition of these items to the compensation package considerably complicates all aspects of the administration of compensation --from the compensation strategy to the implementation of the plan. Benefits are unlike base pay in that they are awarded for different objectives, they are not periodically given, they are oftentimes deferred rather than current, and they require different types of administration. Since pay and benefits together make up the wage costs of the organization, there is a trade-off between direct pay and benefits. This is an extremely important point and helps to explain some of the lack of wage increases in the US (Atchison, T. J., Belcher, D. W. & Thomsen, D. J., 2010). . Benefits are a hodgepodge of programs that provide employees with a number of forms of rewards beyond their wages. Besides fringe benefits, this area has been called such things as indirect compensation, wage supplements, non-wage benefits, social wages, supplementary employee remuneration, supplementary compensation, and indirect payments. Here the simple term benefits will be...
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