Compensation and Benefits

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:

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

“Year after year, as executive pay continues its inexorable climb, it's amusing to watch corporate directors try to justify the piles of shareholder money they throw at the hired help (Morgenson 1)”. There are many employees that go the extra mile and produce more for their company, but they often never receive anything extra in return. Due to this, they are less motivated to go the extra mile in the future. In contrast, incentive pay is beneficial to an organization’s overall production efficiency and effectiveness.

If you are disabled by injury or illness caused by your job, Fitch Manufacturing will pay Worker's Compensation benefits as follows:

The most significant benefit is “Total compensation package, or total rewards,” because they include far more than salary. Total compensation also includes the indirect benefits that result, such as 401(k) plans, vacation time, holiday pay, and healthcare coverage. When a company offers employees an attractive compensation package, they create an enjoyable environment in which workers want to work, and often stay longer with the enterprise (Dessler, 2008), and (Lecture Notes, 2015).

With an effective compensation and benefits package, the organization will see improvements to include quality employees. There will still be ample turnover, which is healthy for the business. Provided the package is reviewed and updated to be current and remains competitive, you will consistently draw upper echelon talent, and exceptional performers.

Having looked at what PRP is and how it is used, I have then chosen to research a number of contrasting opinions on whether it is actually effective and if so which businesses are more suited to the scheme. When looking at motivation in the workplace, the basis for PRP is the rather controversial view that money is a motivator (Nelarine 2001) and a number of researchers have differed in their views on whether PRP really does motivate employees. Although Barnes (2008) suggests that at one level a well designed and managed performance appraisal system should enable operations managers to improve the motivation of individual employees, others have suggested otherwise. Price who believes that pay for performance is

Compensation strategy is attracting lots of attention from new hire employees or current employees. Employees know that, properly engaged and managed compensation program can expand the reach of organization goal and the future career of individual’s goal. Compensation strategy provides an opportunity to reward eligible employees based on company and individual performance. They are designed to support the company’s total compensational goal and assist in attraction, motivating and retaining talented employees. Also, it provides eligible employees with a competitive variable benefit earning opportunity based on mission and goal achievement. Management has responsibility to develop and implement the processes and programs required to administer the compensation system at the same time. Management is also responsible for ensuring that compensation strategy is consistent with the policy and guidelines.

Pay-for-performance pay is an increasingly popular compensation strategy in today’s business world. According to research conducted by consulting firm Aon Hewitt, 90% of the 1,100 employers polled use some form of variable, performance-based pay in their compensation strategy (Kelleher, 2013). There is also considerable evidence that employees, themselves, believe that their compensation should be tied in some way to their performance (Milkovich, Newman, & Gerhart, 2016, p. 332). With such a significant number of organizations utilizing this type of pay, as well as the overwhelming support of employees, it would seem that pay-for-performance is an effective strategy. However, there is argument over whether pay-for-performance is truly an effective compensation strategy. Despite its prevalence and support, both managerial and employee alike, failures such as Hewlett-Packard’s in the 1990’s (Beer & Cannon, 2004) demonstrate that the extent of pay-for-performance’s effectiveness is questionable. This report sets out to examine the evidence in support of and in opposition against the efficacy of pay-for-performance to determine if this compensation strategy can truly motivate employee behavior and benefit an organization’s business strategy.

A company's compensation and benefits package will likely be a great determinant of the quality of its personnel and the stake that these employees feel that they have in the hiring organization. This is why it is incumbent upon an organization to choose a compensation and benefits strategy that is at once consistent with internal values, needs and expectations and respects the external forces of industry standards, market context and geographical impact.

    So far, the company has made nominal attempts to make the workplace more appealing to employees, such as offering a self-funded dental and vision program to associates and increasing training for frontline employees.

What is a compensation packages? Compensation packages are a group of different benefits that employees gain for employers. Compensation is needed for every business no matter what it is to be successful; I do not know anyone who would work for free. (“Cost-benefit analysis assesses the profitability of a financial endeavor by considering the present value of each cost and benefit. Present values are used under the assumption that money available now is worth more than money in the future. That is generally true in an economy with positive inflation, so values need to be discounted for this effect. Cost-benefit analysis use ratios for assessing the investment, but a positive cost-benefit ratio does not necessarily mean you have a positive expected return.”) ("How to Determine Whether the Cost-Benefit Ratio Is Positive or Negative | Chron.com," 2015)

Compensation is one of the most important considerations perspective employees will make prior to accepting a job offer. For this reason, another performance of Human Resource (HR) professionals is the compensation analysis. The focus of the analyst in this position is to use strategy in formulating compensation and benefits packages that are attractive and conducive to maintaining talented employees (Editorial Board, 2011). As another critical service of HR experts, this document will explore the types of benefits and compensations companies use to meet certain criteria of employees. This work will also provide insight on the ways in which these packages are designed to attract

To ensure that WorldatWork retains its skilled workforce, the managers are usually keen to make it known to these hardworking individuals that their skills and workforce to the firm are appreciated. Therefore, managers seek to bond with their employees and improve their personal relations with them (Komati & Ross, 2013).

One of the many topics that we discussed when we met with Joe Daggar, a senior manager at Paychex, was how the company meets the needs of employees in relation to employee compensation. Paychex has a set system where the company performs anonymous surveys to determine which kind of compensation packages employees are looking for. By using these surveys they constantly change and adapt to the needs of their employees. Investment opportunities was another feature that was mentioned in regards to employee compensation. By giving employees access to company stock and assets over the duration of their employment, employees feel that they are really a necessary component of the company. This can help in the struggle to retain employees that would potentially leave the company otherwise, which is crucial due to the fact that high turnover rates are something that every company strives to avoid, regardless of the industry. It is easier and cheaper to retain workers rather than hire and train new ones, so by constantly changing and upgrading the compensation package, workers are more likely to stay with the company in the long run. (Daggar)