Benefits And Benefits Of Employee Compensation

Employees are driven by a numerous motivators to stay in the company, but the biggest is simply getting a regular paycheck. Ensuring that the compensation system is effective is not just important but critical. A few organizations evaluate their compensation system to identify any shortcomings. It is always important to look at how the organization can improve its compensation strategy to attract the best candidates who can innovate and lead the company in the industry. In order to retain high performing employees, the compensation plan should offer more than just a competitive salary. A good example is Costco and Walmart, on the benefits side, 82% of Costco employees have health-insurance coverage, compared with less than half at Wal-Mart.

In the case presented both AFLAC and L.L. Bean had their own distinctive ways of utilizing their products in order to enhance the total compensation for its employees. The factor that has deterred more employees away from their current employer is that of benefit packages, and reward systems. As stated by () “compensation affects a person economically, sociologically, and psychologically. For this reason, mishandling compensation issues is likely to have a strong negative impact on employees and, ultimately, on the firm’s performance” (p.313). Many felt just a bump in pay wasn’t enough to substantiate their hard work or the efforts that the performance efforts provided to their organization. As stated by () “the right total rewards system a blend of monetary and non-monetary

The challenges of an organization can influence the performance of an organization from a satisfaction with pay (Gomez-Mejia, Balkin, & Cardy, 2016, p. 296). The employee salary within an organization is a huge cause for turnover of employees (p. 296). First, the topic of employee salary is of great importance for the current and potential workforce (Lee & Lin, 2014, p. 1577). In addition, employees that have the perception on receiving lower compensation that others within their market will lack in performance and have a desire to leave the organization (p. 1577). In retrospect, the regular evaluation of compensation within the organization is vital to the reduction of employee turnover (p. 1577).

The term compensation refers to all forms of financial returns and tangible benefits that employees receive in exchange for their time, talents, efforts, performance, and results (Bernardin & Russell, 2013) Presumably, employees are motivated by the compensation they receive in all combinations to include their benefits packages. Naturally, employees want to be able to take care of their family to include having good medical coverage and other related benefits. Equity is said to occur when a person perceives that the ratio of his outcomes to his inputs is equal to other’s outcome/input ratio (Salvendy, 1976). Of course, employees want more money, and companies want more work out of each employee. With the cost of benefits like health insurance continuing to rise, companies have to take the higher cost of benefits into consideration when implementing pay

Dennis Whedbee’s crew moved quickly to prepare an oil well for pumping on the Sweet Grass Woman lease site, an area of vast plains teeming with crude oil in North Dakota. It was a mundane fall day in September of 2012, and Whedbee, a derrickhand, was helping remove a pipe fitting from the well when it suddenly burst. Oil pressurized at more than 700 pounds per square inch spewed out of the well, hitting Whedbee and instantly ripping off his arm below the elbow (Grabell et al.). Little did Whedbee know that the worst was yet come when he would struggle with laws restricting his workers’ compensation benefits for years to come. Whedbee is not the only one who has faced these difficulties. Over the past few decades,

2) An inappropriate way to assess the acceptability of a job evaluation plan and its

In a free market, such as the one used in the United States of America, competition between companies is cutthroat as businesses look for every possible way to have the edge over competitors. One of the major ways that businesses stay ahead of the competition is attracting and retaining the most talented employees. It is common practice for companies in the United States of America to provide several non-wage compensations to employees with the aim of sweetening the employment and reducing turnover (entrepreneur.com, n.d). Employees have come to appreciate the benefits offered by companies and consider benefits just as important as their salary.

Employees dedicate a huge part of their time working for a company. A typical full time employee that works 40 hours a week spends about 200 hours per month only at work. This is not including time spent on driving to work and back home. More importantly employees are also valuable asset to the companies; they bring in skills, experience and get the job done. Therefore as forms of payment other than monetary compensations companies offer a variety of benefits intended to help promote financial security and raise living standards. Some of these benefits are statuary and some are voluntary. Mandatory benefits include Social Security, unemployment, insurance, worker’s compensation and family and medical leave. Most benefits such as pensions

Benefit packages particularly one that offers great medical coverage (including dental and vision), help retain and attract great talent. Alan can get JSH a tax advantage of deducting plan contributions which can include health insurance, life insurance, and retirement plans. Rather than making a higher salary offering, Alan can offer a good benefits package which ultimately create saving for the company. With the company being relatively small the owners can take advantage of the benefits package themselves instead of having to have privately own insurance. Offering medical coverage has been appeared to decline non-appearance and enhance the morale and wellbeing of the employees.

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).

There are many qualities that lead to how an employee is compensated. They are judged on their efficiency, productivity, compatibility with their fellow coworkers and their ability to generate profit in addition to many other skills required for their position. When companies take into account all of these attributes how do they determine how much money employee should receive? Chief executive officers are responsible for a company’s success or failure, all responsibility is placed on their shoulders, so how much payment should CEO’s receive? According to entrepreneur.com an employee is an investment, “You never want to pay more than the job is worth to you… How much more valuable will this person make my company?” These questions play a pivotal role in deciding an employee’s value. When there are succinct indicators to decide an employee’s salary why would a company continue to overpay their employees?

InterClean is entering a new strategic target and upper management has asked for a proposed compensation plan purposely for the new sales team. Recommendations for the new compensation plan will be submitted to the human resource department manager for endorsement. The foundation of the new compensation plan was developed after reviewing the job analysis, training program, and performance management plan. The plan includes a description of the prepared proposal and the explanation of an effective pay system. The three parts of a total rewards package to encourage employees to achieve highest performance is implemented in this strategic plan. The compensation plan also illustrates the designed

In today’s competitive workforce, compensation and benefit packages plays a crucial role on recruitment and retention for both the organization and the employee. Bumpbie finds itself in a situation where it could positively affect its employee’s morale, turnover rate and longevity; by making a strategic decision to implement compensation and benefit packages that will encourage current workers to stay and entice new applicants. Money is not always the inherent reason businesses experience high turnover rate, the constant shifting in the job market will always be a contributing factor as well as employee’s moral. Mayhew, R. (2016), explains that an “employee compensation plan” refers to all the components offered as well as the way in which they are paid, and the reason behind the employees getting the compensation case bonuses, salary increases and incentives. The fact that there are voluntary and mandatory benefits that organization provides to their employees give employees the freedom of choice, as well as the option to make the whether to stay with or leave an organization based on the benefits it provides. Variable Pay is also an option that some employers offer their employee which is performance based or results oriented. Whether it is profit sharing, merit based programs or incentive bonuses; it all comes down to which organization can provide employees with the compensation or benefits packages that best satisfy their needs.

perform each job. While training each employee in each area is time consuming it has many benefits to the employees and to the business. By allowing employees to rotate though the different jobs in the restaurant it helps prevent employee burn out in some of the higher stress areas of the business. The cash register is one of these areas; employees are expected to have a constant outgoing, happy appearance with customers and having to deal with the never ending calls for takeout increases stress. On the other hand it allows for increased flexibility and shift coverage for the business owner. For instance, if one employee calls out sick and that employee were scheduled to be the pizza maker for that night, it would be relatively easy to shift another worker or call someone in to cover that position. This increased flexibility takes stress off of the business owner and the employees. The owner also does a good job at trying to give employees the opportunity for job enlargement; he allows employees to come up with specialty pizzas not on the menu for the week, and whichever employee has the bestselling pizza at the end of the month gets some kind of bonus. By allowing employees to use their creativity it keeps them involved and caring for the business; which in turn improves the bottom line and efficiency of the company.

The position will also offer other employee benefits and allowances as a motivation for the workforce. The company will offer medical insurance where the employees will be sponsored for half the amount incurred as medical expenses. The medical cover offered by the company also covers the immediate