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.
It is important that the compensation and benefits plan of an organization meet the needs of not only the employees but also of the organization itself as well. There will always be some sort of resistance in certain areas; it will always be something that needs to be enforced. Boeing can give compensation and benefits to their employee for their training and mentorship programs.