Effectively Managing Employee Compensation and Benefit Packages

Competing in global markets entail many factors and centralization of its human resource practices is certainly vital to improve global competitiveness and empower employees for global assignments. To achieve success in global marketplace, the challenge of all businesses regardless of their size is to understand global corporate cultural differences and invest in human resources which includes selecting and retaining talented employee, training and development whilst encouraging employees to be innovative and creative. Employees selected to work in foreign locations should be prepared beforehand with adequate cross-cultural training. For an organization to be successful in the international marketplace, it must be concerned with this fit from both an internal and

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).

If a company were to send employees to the above named different countries from the USA to make pay scales in the companies based within the foreign country. The USA employee would want to take into consideration that the other countries pay their employees different rates and the amounts of cost of living in the countries when it has high cost to live places the pay rate would have to be higher than when cost of living is low. You also have to look hard at pay scales already in place in those countries. The above data was all done on average cost of living. You can either do it for less than average or higher and is the exchange rate s lower than in the USA you can afford to pay a little higher to attract employees. HRM must consider the laws n each and every country first. The laws for every country are different and labor laws are most important in following then make pay scales by the cost of living in each.

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.

The cost target aims at developing a fund set aside for providing benefits to employees. The management promises that this fund remains off limit to covering company expenses and constantly grows as the company grows. A sustained growth ensures drafting of more benefits into the existent package. This methodology aims to serve the changing trends in the market workforce. Thus, the company asserts that this package provides a long-term pathway to retaining experienced employees and attracting others from rival firms.

The organizations are also aware of the fact that they may engage in capital investments and may erect spacious and beautiful buildings but if they do not have the right kind of individuals orchestrating in the rhythm of organizational success the organization will perish ultimately. Work force planning is a similar human resource tool that facilitates an organization long term accomplishment and sustainability. Work force planning is in fact a systematic approach that is used for identifying and addressing calculated gaps or discrepancies of the availability of human resources currently available with respect to the future needs and anticipated skill of the human resource needed to cater the future challenges of an organization. Subsequently the human resource planning forms the summative pillar of organization's success and strategic decision making. The most important motivator to the employees in the organizational setting is the rewards and compensations and it is for this reason that the human resource executives spend a great deal of efforts in designing and implementing the compensation programs.

Face to those options and wide resource, the managers in global enterprises have particular concern about the employees’ ability to disseminate knowledge and innovation throughout their global operations . The use of expatriates has seemed to be a logical choice for staffing, while the use of parent-country nations seems to be most appropriate in some specific situation . Some other global enterprises also prefer integrate the expatriates and local human resource. Nevertheless, each procedure has both advantage and disadvantage.

In today’s ever increasing competitive business environment, Human Resource practices with business outcomes in mind is a necessary first step in aligning business goals with employee motives, a well-rounded compensation plan precedes attainment of these business goals(Martocchio 3). As can be seen by this statement, compensation is a major concern for all players in the business world today. As a matter of fact, if a company fails to properly manage their compensation package they will find themselves being left behind by the competition. In particular, what exactly does being left behind in compensation and benefits mean? It stands that other companies will have an advantage in attracting high performers who can create an impact for

Employee compensation is very important in any organization since it helps to mark the established relationship between the employer and employee. Compensation usually encompasses many motivating factors that act as a catalyst to an employee in the cause of work. It has been discovered that organizations with good compensation practices are able to maintain their skillful and experienced workers. This then leads to a company gaining a competitive advantage in the market since customer value is greatly delivered (Milkovich et al, 2011).

Since pay honest vigorously impact enlistment, turnover, and representative efficiency, it is critical that candidates and workers see these practices in an ideal light. In the accompanying segment, we talk about how individuals structure discernments around an association 's remuneration framework and how these observations at last influence their conduct.

In an expanding economy, human resources are scarce, and it’s important to attract and retain the best people. In a recessionary economy, human capital is a major expense that needs to be controlled effectively. But no matter what the global economic situation may be, you need maximum insight and flexibility to manage enterprise compensation. You also need the ability to adapt dynamically to ever-changing circumstances. A comprehensive compensation management solution achieves this by integrating all relevant human resources (HR) processes, including the administration of fixed and variable pay, long-term incentives. performance management, compensation budgeting, personnel cost planning, salary benchmarking, and payroll.

Compensation and compensation plans vary widely throughout India. However, expatriates cost generally three times more than a local, with middle managers’ packages averaging almost $300,000. The most commonly used compensation approach for expatriates is the home country based balance sheet approach. These systems and plans evolved quickly in recent decades. However, there continues to be room for improvement.

The organization for which I am designing the compensation package is a company that offers internet solution to customers in the domestic US market and the global market. The position that I am hiring is that of a company secretary. The secretary will be required to work in the office of the human resource manager and will handle all the papered and paperless documentation. The position comes with numerous benefits and packages as outlined herein.

There are three different methods to calculate expatriates’ base pay. (Martocchio, 2015) concludes that the first method is the home country-based pay method which compensates expatriates the amount they would receive from similar work in the United States. The home country-based pay method is most suitable when expatriate assignments are short in duration and local nationals performing comparable jobs receive substantially higher pay. The second way is the host country-based method which compensates expatriates based on the host countries’ pay scales. Companies can determine the base by various standards, including job evaluation techniques, market pricing, and jobholders’ past relevant work experience. The host country-based method is most suitable when assignments are of long duration because expatriates tend to judge their pay compared with their local coworkers rather than their counterparts at home country. The third method is headquarters-based method

The compensation practices that a business firm partakes are independently sufficient to determine the level of success that is attainable. It is the best means to use in an attempt to get the workforce fired up for the various duties that they may be delegated. This is because it is the direct pointer of the returns the entities can generate from the full commitment they may be willing to show in the attainment of the primary objectives of the undertaking. Therefore, it is critical that any business that may harbor the intent of a forward progression towards the achievement of greater heights may be obliged to review its remuneration practices.