Recognizing Employee Contributions
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Recognizing Employee Contributions
Methods human resource professional can use to determine incentive pay
A human resource professional can use the following methods in determining the incentive pay;
Halsey premium method: under this plan a worker who completes the job within or more than the set standard time receives the usual time rate pay. However, a worker who finishes the job a time less than the normal time receives a bonus. The bonus is a fixed percentage of between 50% of the time saved with the other 50% being the employer's share. Consequently, the plan has catered for both the company and the employee. Not only does the method motivate workers to enhance their efficiency it also ensures that they equally share the advantage arising out of the time saved.
Taylor’s differential piece rate method: the method is against the payment of incentives based on time. It provides for two piece rates that are the low piece for output below the standard and a high piece for work above the standard. Take, for instance, a company that has a standard of 40 units per day and 30 and 25 rates per unit for high and low piece respectively. A worker who produces 40 units gets a pay at the rate of 35whereas a worker who produces at 30 gets a pay at the rate of 25. The method takes into consideration both individuals, groups and the company since it ensures that efficient workers are highly reward, and the company will in turn attract only the best in the market (Brown, 2002, p.37).
Legal requirements affecting employee benefits Both the employer and the employee are called upon to appreciate legislations in place that affect employee benefits plans. There exist several legislation depending on location or state. However, there are some common federal laws that govern employee benefits plans and are as follows:
The Employee Retirement Income Security Act: the Act is concerned with self-funding of worker benefits. It stipulates the requirement standards and fiduciary duties on welfare and retirement benefits. The law safeguards the rights of beneficiaries of the employee benefits plans.
The Consolidated Omnibus Budget Reconciliation Act: the statute requires employers to provide health care coverage to employees who are retiring or leaving the company and would else not be entitled to healthcare plans.
The Civil Rights Act: the law makes it illegal to discriminate employees on the basis of color, race, religion or sex.
The Health Insurance Portability and Accountability Act: the Act is meant to make health insurance continuous. The law restricts insurers' ability to impose pre-existing condition exclusions. The law ensures people can change work without the worry of losing their health benefits.
The Age Discrimination in Employment Act: it protects workers over 40 years of compulsory retirement or dismissal on the basis of age. (Employee Benefits Survey, 1995, p.57)
Legally mandated benefits that a company must offer to its employees Employee’s benefits are regarded as the cornerstone of any workplace. Employers who do not offer benefits are faced with problems recruiting or retaining their employees. However, there are benefits that all employers are required by law to offer to their employees. These benefits include:
Social security: employers are required to pay social security taxes at the same rate as the employees. Currently both the employee and the employer are required to pay 6.5% rate and an additional 1.45% rate for health care.
Workers compensation: also known as disability benefits. They bestow benefits to workers disabled by work-related injury or illness.
Family and Medicare leave: employers with over 50 employees are required to provide leave as provided by the Family and Medicare leave (Shi, 2007, p.248)
Additional benefits that the organization should consider providing to its employees Apart from the compulsory benefits companies are required to offer their employees there are other equally important but optional benefits. These benefits include:
Survivor Benefits: these benefits are for survivors of a deceased employee. The survivors are comprised mostly of mandatory Social Security and workers compensation benefits. The company should analyze the employee’s age, marital position, and parental duties to determine eligibility. A well-known survivorship benefit is the life cover that takes advantage of tax inclinations and exclusions.
Hazard pay benefit: the benefit ensures that workers doing hazardous work get additional pay. Any work that may lead to physical discomfort or distress and cannot be alleviated by protective gear amounts to physical hardship. The pay is only paid for the hours during which the worker is working in hazardous environments.
Holiday pay benefit: the benefit refers to compensation offered to employees on holidays such Christmas or time not worked when the company is closed, or the employee is on vacation. No employer is required to pay employees for time no worked (Beam & McFadden, 1998, p.451).

Concepts that a company must consider when designing benefit plans
Incentive is the stimulation of effort and effectiveness by offering some inducements that may be in for instance cash bonus or non-monetary benefits such as promotion. The top goals of issuing incentives are to increase production volumes, reduce production costs, improve quality, and raise the employee's morale. Incentive plans are classified as either time-based or production based. Time-based plans are characterized by a preset standard time for doing a specific job. If an employee, for instance, finishes his work in a time less than the standard time, he/she gets a bonus as a reward for the showcased efficiency. Production based plan determines the standard time based on the number of units a work has produced. A worker who exhibits the efficiency is paid at a higher rate per unit.
Assess the efficiency of common techniques for effectively communicating compensation and benefits plans to employees. Support your answer.