...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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...ESTABLISHING A COMPENSATION AND BENEFITS PACKAGE LEONARD ANTHONY 3085841 Questions I would have to consider before establishing compensation and benefits package are; what is the purpose of the business I am in? Is it a high turnover industry? Is the industry targeted employees targeted for short-term employment? Am I in the peoples business or is my business predicated on the performance of employees? Once those questions have been answered, I would be able to establish a compensation and benefits package. For this paper I will take the later that my industry or field does experience turnover but it consist of employees that are committed to the company and looking for long term employment. The first things I would have to consider are my direct (cash) and indirect (benefits) compensation package. My direct compensation package would consist of salary, hourly wages and bonus. Factors that would affect my direct compensation package are supply and demand, labor unions and the company’s ability to pay and its productivity and government regulations according to (Montana & Charnov, 2000, p 222). Supply and Demand dictates the availability of qualified people within the area to do the job. If the economy is doing well then their will be great competition in attracting qualified candidates to do the job, this means management would have to pay a higher dollar amount to qualified candidates. If the market is slow then there will be a surplus of qualified and candidates...
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...PhD HR Management Foundations Incentive Pay The main goal of employee incentives is to motivate employees to achieve their highest performance possible. Human Resources must first determine the needs of the employees. Once those needs have been assess, then they must decide on an incentive plan that focuses on those particular needs. “Incentive plans must showcase what the potential may be if the purpose is fulfilled” Kishore & Rao, 2013). For this particular company one method that could be used to determine incentive pay is by basing it on individual’s performance. First you would identify who your top performers may be. Human Resources should communicate with them and inform them of the incentive plan for performance bonuses based on sales for the quarter. Even though this is an individual based performance plan it can also be applied to groups within the organization. For example, the internet sales team of the company would participate in a different form of performance bonuses based on the teams internet sales achieved. For individuals, it motivates them to self-satisfying goals set by the company and shows them that they are assets. For groups, it can help to encourage and motivate teamwork. In regards to the company’s performance, this plan enforces an increase in the profits of the business. Another option available is to pay individuals based on group performances. Due to the fact that efficiency is an important aspect of this position I believe that the company...
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...of Business System NEW ADVANCES IN BUSINESS 12-13TYAABSS007-3: INNOVATIVE MOTIVATION IN ECONOMIC CRISIS: THE FLEXIBLE BENEFITS SCHEMES BY Mai Ngoc Nguyen 1215894 An assignment submitted in partial fulfillment of the assessment for the New Advances in Business (12-13TYAABSS007-3) unit March 2013 * Contents Contents 2 EXECUTIVE SUMMARY 3 LIST OF FIGURES 3 LIST OF TABLES 3 1 Introduction 4 2 Literature review 6 3 The economic crisis and the transition in methods of motivation: The need for an innovate benefits package 9 3.1 Impacts of the economic crisis on employees and employers 9 3.2 The transition in methods of motivation: The need for an innovative benefits package 12 3.3 The traditional benefits package and its motivating effectiveness 14 4 The flexible approach to benefits provision in a gloomy economy 16 4.1 Effectiveness of the flexible benefits schemes in motivation 17 4.2 Factors affecting the motivating effectiveness of the flexible benefits schemes 18 4.3 Current issues influencing the adoption of the flexible benefits schemes 20 5 Conclusion 21 APPENDIX - Changes in the British WorkForce 22 REFERENCES 23 FURTHER READING 27 * EXECUTIVE SUMMARY In recent years, in the UK, both employees and employers have to bear negative impacts from the recession, especially employees with their financial difficulties and diverse needs. It is more important than ever for motivation. However, employee motivation is...
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...……………….7 References………………………………………………………………………………………………………………………………………………8 Executive Summary Within this report I have completed research on three additional compensation strategies that have a focus on retaining and recruiting highly qualified employees in the manufacturing field. The additional compensation packages could be implemented into the benefit package already in place for both our exempt and non exempt employees, as well as future employees. The key factor in this report is to battle our problem of employee turnover. While we offer a very competitive wage for a manufacturing company we also need to show that we value dedication and above all pride in a job well done. We need to make sure that we are encouraging the quality of the work performed meet existing standards, and also provides the extrinsic motivation needed to instill a sense of loyalty. By offering additional compensation we are telling our employees that we value the need to advance and learn new concepts to keep our company fresh and moving in a forward direction into the future. Offering Tuition Assistance Programs shows that the company encourages career development. This package also has the added benefit of exposing employees and future...
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...Compensation and Benefits Strategies Recommendations HRM/531 8 July 2013 University of Phoenix Compensation and Benefits Strategies Searching for a job in today’s market can become a long process and one thing many potential employees look at first is the compensation and benefits packages being offered from the potential most qualified, retaining employees, and maintaining motivated workers (Cascio, 2013). Most organizations are realizing that a well-constructed compensation and benefits programs for employees has a considerable effect on productivity, morale, and the employers cost benefit. These positive effects bring in revenue to add to the business success. In today’s economy there are many who are unemployed and the compensation and benefits component is on the side of the employer where the employer can be more constrained on their rewards and benefits. Regrettably in todays market companies can offer less or no compensation and benefits, and oftentimes receive more in skills and expertise. Although the compensation and benefits package has gone through a transformation its primary purpose is to focus on adequacy, equity, cost control, and balance. Our team has reviewed and concluded that the following adjustments should be implemented in the compensation and benefits package at Landslide Limousines. Compensation will be determined considering the organization’s budget and most importantly the required performance and productivity to achieve organizational goals...
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...offers, a corporation must offer them large compensation packages to stay competitive against rival companies. The total compensation packages for company executives include their base salary, benefits and stock options, which are often much more extravagant in comparison to the average worker of the firm. John Rawls’s A Theory of Justice provides principles that deal with the social and economic inequalities in society like the pay gap between executives and lower employees. When companies are trying to determine the pay of their CEOs, it would be wise to apply the stakeholder theory by Edward Freeman. Stakeholders are very important in the success of the company and all stakeholders should be considered when making business decisions. By using the stakeholder theory, the boards will be able to balance the benefits and losses for everyone involved in the company The average CEO in 2010 that earned $11,358,445 in salary would earn approximately 57 times more than 95% of all households in the United States. It is not necessary to be paying an individual such an enormous amount of money when 95% of families are able to live with $200,000 or less. In addition, there should be a moral limit on how much compensation an executive can accept as there are others in the firm whose hard work , result in a company’s success and profit. John Rawls’s principles from A Theory of Justice can be applied to the compensation packages of chief executives to show how lopsided they are. Rawls has...
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...Compensation and Benefits Strategies Recommendations Dave Tauala, David Cosme, Luana Pa'ahana, Rolly Alvarado, Sharon Losalio HRM/531 May 28, 2014 Arlis Liu Compensation and Benefits Strategies Recommendations A competitive and affordable total rewards system will not be effective if potential employees do not know what benefits are available. Communication of the package is just as important as the package itself. Employees tend to perceive the value of competitive benefits as excessive costs versus value (Cascio, 2013). The intent in the design of compensation programs is to incorporate salary and benefits into a package that will achieve Landslide Limousines' organizational goals. The team from Atwood and Allen Consulting put together recommendations for a total rewards package for 25 employees with projected revenue of $50,000 for the first year and a 5% revenue growth over the next two years. Limousine Market Landslide Limousines is a new business entering the marketplace. According to Austin Ground Transportation (n.d.), there are more than 70 limousine services. Landslide Limousines will need to market their service comparable to other limousine businesses. Austin is a tourist destination known for its diverse shops, bars, and restaurants. With today's unpredictable economy, limousine services are feeling the pinch as shuttle buses are gaining more business (Breslow, 2014). Entering the market as a new company, the ability to pay employees will be constrained...
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...ORGANISATION PERFORMANCE (A CASE STUDY OF CASE STUDY OF COCACOLA KWANZA COMPANY DAR ES SALAAM TANZANIA) BY OMARI RAHA SHEDRACK A Research Proposal Submitted in Partial Fulfillment of the Requirement for the Degree of Bachelor of Human resources Management of Tumaini University Makumira-Dar es salaam College. 2015 IMPACT ASSESSMENT OF EMPLOYEE MOTIVATION ON ORGANISATION PERFORMANCE: (A CASE STUDY OF CASE STUDY OF COCACOLA KWANZA COMPANY DAR ES SALAAM TANZANIA) BY OMARI RAHA SHEDRACK Supervisor: Dr. J. Mwita A Research Proposal Submitted in Partial Fulfillment of the Requirement for the Degree of Bachelor of Human resources Management of Tumaini University Makumira-Dar es salaam College. 2015 ABSTRACT The study aims at assessing the impact of employee motivation on organization performance so as to help the organization know the contribution of motivation to them. This study will be carried out at Coca-Cola Kwanza Company limited at Dar es Salaam Tanzania. The study have the objectives of assessing various motivational packages for the staff of Coca cola Company Limited, to determine which of these motivational packages influence staff performance at Coca Cola Kwanza Company Limited, to assess the effect of motivational packages on corporate performance at Coca Cola kwanza Company limited, and to examine the motivation strategies of motivating employees The study is expected to help employers to determine whether motivation packages enhance staff...
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...subscribes to a slightly different compensation and benefits strategy, but most of those strategies are designed to recruit and retain top industry talent. Compensation strategies support business objectives by motiving employees to meet company goals. Rewarding accountability and skill competency helps businesses shape employes into future company leaders. Administration strategies showing respect for each employee's individual talents and needs lead to a high level of employee loyalty and low turnover. Many modern organizations strive for flexible salary and benefits, which can raise employee motivation by supporting each employee's desired level of work/life balance. Understanding Compensation Strategy Several elements make up an overall compensation strategy. These elements include: alignment with organizational strategy, individual employee's room for career growth, the contributions of employees and the involvement of management using guidance and performance appraisals. Management uses salary and benefits to show employees that the company values their contributions. In turn, employees help the organization perform better in the industry marketplace. Linking Compensation to Organizational Strategy Though benefit and salary administration are often part of a business's comprehensive compensation strategy, every department within a corporation may have different pay and benefit challenges. Salary and benefit administrators can keep the strategy focused by...
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...Running head: Compensation Planning 1 Compensation Planning Jonathan Phifer BUS 434 Compensation & Benefits Management Instructor Justin Furlong July 8, 2013 Compensation Planning 2 Compensation Planning When HR is designing a strategic compensation plan for and organization there are several key factor to consider which should include criteria for strengthening performance, containing cost, limiting liability, and promoting fair pay for employees. To ensure long term success and organizations need a compensation package that links organization strategy to good performance and ties it to the labor market. It also must be within legal compliance of the law and provides a sound salary structure pay for the employees. With the collaborative between these components they must be designed in such a way that it will support the organization business strategy which will stand the test of time and allow the organization to be successful. In this paper I am going to identify these key components and while designing a compensation plan for Holland Enterprises to allow the organization to be successful in the market place. The global market over the last two decades has placed greater stress on organizations regarding their ability to be competitive and profitable...
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...EFFECT OF MOTIVATION AND TRAINING ON THE PRODUCTIVITY OF AN ORGANIZATION TABLE OF CONTENT Title Page - - - - - - - - - - i Certification- - - - - - - - - - ii Dedication - - - - - - - - - - iii Acknowledgement - - - - - - - - iv Table of contents - - - - - - - - - v Abstract - - - - - - - - - - vi CHAPTER ONE: INTRODUCTION 1.1 Background of the study - - - - - - - 1 – 3 1.2 Statement of the problem - - - - - - - 3 – 4 1.3 Objectives of the study - - - - - - - 5 1.4 Research Questions - - - - - - - - 5 1.5 Hypothesis - - - - - - - - - 6 1.6 Significance of the study - - - - - - - 6 1.7 Scope of the study - - - - - - - - 7 1.8 Limitation of the study - - - - - - - 7 – 10 1.9 Plan of the study - - - - - - - - 10 – 11 1.9.1 Definition of terms - - - - - - - 11 CHAPTER TWO : LITERATURE REVIEW 2.1 Introduction - - - - - - - - - 8 2.2 Concept of motivation and training - - - - - 12 – 15 2.3 Theories of motivation - - - - - - - - 16 – 21 2.3.1 Motivation in Nigerian banking industry - - - - 21 – 23 2.4 Factors that trigger training - - - - - - - 23 – 24 2.5 Aims of training - - - - - - - - 24 2.6 Benefits of training to organization - - - - - 24 – 26 2.7 Benefits of training to employees - - - - - - 26 2.8 Types of training - - - - - - - - 27 – 30 2.9 Appraisal of training- - - - - - - - - 30 2.10 Methods of evaluation - - - - - - - 31 CHAPTER THREE: RESEARCH METHODOLOGY 3.1 Introduction - - - - - - - - - 31 3.2 Population - - - - - - - - - 31 3.3 Sampling...
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...strategic move towards management of a firm's workforce. The workforce is the most valuable asset in any organization. Indeed, organizations are constituted by employees and not the processes and technology employed. The goals of any organization can only achieved by entrusting it to a committed workforce. According to Youssef (2012), HRM functions in hiring people, ensures growth of employees' capabilities so as to fully utilize them and compensate them for their contributions in making organization's goals. However, HRM exists to ensure employee productivity by addressing any hindrance occurring on employees' performance. This paper explores the functions of HRM, major concerns in those functions and their relevance to the sum total goal of an organization. In addition the paper reflectively focuses on the impacts of functions to the employees' current and future career. To achieve the organizational goals, HRM develops the employees and motivates the individual employee via proper communication of the social responsible and ethical behavior thereby expounding any performance gaps in the organization and providing remedies to them to ensure efficient working. The process of HRM is guided by outlining the future of the organization. The plan relates the efforts of the employees with the organizational goals. Achievements of employees can only be relevant to the organization if they continually address the organizational goals. Organizational goals distinguish between organizations in...
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...| Does a 401K Benefit Affect Employee Performance? | Week 5 (Research Paper) | By: Jasmine Branch. 11/7/2014 | Executive Summary: My research paper provides an analysis of the current affects on work performance, and employee motivation with regard to employee benefits with a focus on 401(k) options. The methods of analysis include survey observations, articles read, and peer communication information received. All references can be found in the reference section as noted. Results of the information received show that employees are typically motivated by incentives given to them, those incentives do include the 401(k) option. The report finds that employees are motivated as well as feel more valued when employers extend the 401(k) option to them as well as a range of other benefits at the employers discretion. The report also thoroughly explains what motivation is and how it is manefested in the workplace to adhere to the topic as mentioned. Some limitations include studies that included 401(k) option discussions but not enough information to determine whether or not this option affected work performance. Known results are based on an overall review of the studies as they pertained to employees receiving benefits as well as how they felt after receiving those options. In business, employee satisfaction is a major factor in the success of the business. Employee satisfaction translates to customer satisfaction, which affects retention...
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...has created a vital need for effective Human Resource Management (HRM). Implementing and executing areas of human resource management entail Equal Employment Opportunity (EEO) and Affirmative Action, Human Resource Planning, Recruitment, Selection, Human Resource Development, Compensation and Benefits, Safety and Health, and Employee Labor and Relations. By studying each area, one can comprehend how they can be used in one’s career ambitions and prepare for a productive, prosperous future. One area of Human Resource Management is the understanding and implementing of procedures to have Equal Employment Opportunity (EEO) According to (Ivancevich, 2010) Human Resource Management is a function performed in organizations that facilitates the most effective use of people to achieve organizational and i individual goals. As society and organizations grow and become more complex, HRM functions continue to expand into many areas vital to organizational growth and success. EEO and Affirmative Action Equal Employment Opportunity forbids all types of discrimination which includes race, religion, creed, sexual orientation, ethnicity and gender. Equal Employment Opportunity effects just about every area of HRM from planning, recruitment to the selection and other areas of HRM. It is important that leadership, management on all levels of a company to be involved in EEO procedures and processes. Forming and having EEO policies in place avoids work place discrimination. Additionally...
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