GC3 Compensation and Benefits Plan Pay Philosophy As GC3 pushes for a stronger and revitalized company, Tri-State Consulting, LLC recognizes the mission, vision and business strategy should be the basis for the company’s Compensation Strategy. “Turning compensation into a driver of business success is part of knowing your business (Miller, 2011).” Alignment with the business strategy is shown through industry match of compensation in the 50 percentile, which is part of differentiating services from rivals. Out of the 2,700 staff members, there are eight benchmark roles. These roles hold the following job titles Barista, HR Manager, HR Assistant/Store Manager, Store Manager, Recruiting Specialist, Training & Development Coordinator, Chief …show more content…
It is recommended that GC3 use a Total Rewards Program to help supplement their pay structure and allow employees to be rewarded by more than pay. This strategy is simplistic, yet gives structure to compensation and it allows for flexibility, if GC3 has an out-performing employee. Compensation Strategy Job Evaluation and Market Comparisons GC3 will endeavor to pay all of its employees total annual cash compensation at the median (50th Percentile, or middle) of appropriate national and/or local market rates of pay for similar jobs in similar companies, see comparison chart from industry survey to GC3 alignment below. If location or individual performance exceeds expectations and industry standards, higher levels of total annual cash compensation will be awarded, as well as bonus programs for determined out-performing locations. However, salaries may be adjusted versus industry levels based upon experience, competency and sustained performance. Total compensation plans and/or a total rewards program define an organization 's strategy to attract, motivate, retain and engage employees. Compensation and benefits have paved the way for total rewards that encompass not only compensation and allowances, but also personal and professional growth opportunities and a motivating work environment (Heneman, 2007).” Pay Structure GC3 will use two platforms, or pay structures, for compensation of employees: First, market pay with bands and,
Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.
carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).
Share how you would compensate each of the employees with the budget dollars provided (see Compensation Template in Doc Sharing). You must provide substantiation for your salary decisions. Even with the decisions you make, what might be some consequences? Input your decisions into the template. Include your risk analysis.
Base pay will be determined according to the value of the skills and competencies an employee has acquired on the production floor, there will be the incentive for skill development as employees base pay will increase as their skill proficiencies enlarge. This will also create mobility between jobs in the organization as many members will be proficient in numerous jobs.
Columbus Custom Carpentry is a relatively small family-owned business that was started in 1946. The organization is rooted in the Midwest area of the country and focuses mainly on the production of antique and custom contemporary style doorwork. The organization currently has four locations and employs 135 employees. Even though the company operates in a niche market, Columbus Custom Carpentry has experienced great success resulting in annual sales of 15 million dollars. The organization is composed of several different departments, which are grouped into four different units. These units are administration, marketing, manufacturing and warehousing. Columbus Custom Carpentry has numerous problems dealing with internal and external compensation equity. The following team research conducted will examine identified human resource management issues dealing with topics such as pay equity, turnover rates, market pricing, and pay structure. The research will offer
A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:
To foster competitiveness and deliver better results, there is a program called STACK where employees are ranked based on the work done and their incentive is decided based on it. Better the rank, better the incentives.
Macy’s Inc. is one of the nation’s premier retailers operating more than 850 department stores and employing approximately 182,000 employees in the United States. Macy’s takes pride in selling numerous private label
Total pay which can be a form of statement of total reward which can include: salary, variable pay, additional benefits and performance related pay.
The six features of an effective total rewards program include: focusing on alignment, taking the employees views into account, measuring / managing costs, the greater use of incentive based pay, having effective communication / education and managing the reward program. The combination of these factors is helping firms to more efficiently monitor the sales force.
advantages of a total rewards program outlined in Chapter 2 of the textbook and discuss
Reward Management (RM) has been defined as the distribution of monetary and non-monetary rewards to employees in an effort to align the interests of the employees, the organisation, and its shareholders (O’Neil, 1998). In addition O’Neil (1998) also suggests that a RM system can serve the purpose of attracting prospective job applicants, retaining valuable employees, motivating employees, ensuring legal requirements relating to direct and indirect rewards are not violated, assisting the company in achieving human resource and business objectives, and ultimately assisting the organisation in obtaining a competitive advantage.
Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).
Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration. Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process. Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).
An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.