Pre-Base Compensation Research Paper

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.

Compensation systems can take on many forms, all of which have positives and negatives related to it. However, certain components are noted to be determinants of solid compensation plans. One agreement of a solid compensation system is the use of incentives. “Clearly a successful companies set objectives that will provide incentives to increase profitability” (Needles & Powers, 2011). Incentive bonuses should be measures that the company finds important to long-term growth. According to Needles & Powers (2011) the most successful companies long term focused on profitability measures. For large for-profit firms, compensation programs should offer stock options. The interweaving between the market value of a company’s stock and company’s performance both motivate and increase compensation to employees As the market value of the stock goes up, the difference between the option price and the market price grows, which increases the amount of compensation” (Needles & Powers, 2011). Conclusively, a compensation plan should serve all stakeholders, be simple, group employees properly, reflect company culture and values, and be flexible (Davis & Hardy, 1999; The Basics of a Compensation Program).

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.

Firstly, the president and other management team members may get a higher overall salary by putting next year’s revenue to this year and transferring current year expenses to next year. The division’s management team’s salary and bonus may be based on the earnings of the division. By increasing revenue and decreasing expenses, they will be able to fake a higher operating income and thus receive higher compensation.

Each employee is paid at the minimum the average salary for their position, and award we those with additional experience and education with additional compensation with their experience and skill level. We also make available each job description, requirements and pay scale for each position at our facility.

The pay plan reflecting compensation for employees will be reviewed and approved annually by the Board of Trustees. Budgetary limitations may restrict the ability of all Coastal

The components and general structure of any business firm could lead to disconnection of the relationship between managers and their employees. It is, therefore, necessary that Kudler Foods adopt a well-defined strategy, which will protect the relationship. The composition of the compensation plan for Kudler was developed with the needs and efforts in mind. For Kudler Foods Organization, the Human Resource Managers planned for a strategy that would include all necessary components. The compensation plan for the organization included the base pay, short-term incentives, long-term incentives and benefits for employees, plans for retirement and finally the equity element (Tibergien & Pomering, 2011). The components are discussed in detail, in the proceeding paragraphs.

This occurs when the pay range of a lower level position overlaps a higher level position too much

Provisions to this plan include bonuses of as much as 5%of an employee’s base salary just for meeting production quotas and managers will be limited to a 30% wage increase for improved performance (Robles).

Atlanta values its staff and the dedication team members bring the achievement of overall organization goals. From a human resources perspective, we want to ensure the organization provides an overall rewarding work experience. We review staff compensation on a regular basis to ensure marketplace alignment. As a result of the most recent marketplace review, your base salary will increase to $34,000 and your incentive target will increase to 5%. The change in your compensation will be effective today, September 1,

Thereafter, the 3rd through the 5ht percent will be match by $.50 for every dollar contributed. This compensation package will also include a health spending account to help with medical office co-pay, dental services and for prescription glasses. Due to government regulations the benefits package will include protection under the following laws: FMLA, FSLA, and Affordable health care act. The employee will be eligible for protection under the FMLA after working 1250 hours. In addition, being that this position is a non-exempt position the employee will be paid time and half for anything worked over 40 hours. The 40 hours must be labor work hours and cannot be used in conjunction with pay without work. The rewards package will include bonus for company meeting and exceeding profits and will be awarded semi-annual at the rate of 10% of the annual salary. The 10% will be granted if the company meets 100% of sales goal. If the company meets 95% of the forecasted sales then the employee will be granted 5% of the annual salary. In addition, to the bonus pay the company will provide merit pay increases based on annual employee performances. The most important aspect of this compensation package would be the rewards that will motivate the secretary. Due to this position being an individual contributor it can become a lonely position. Therefore, it is critical to ensure a reward package is in place to motivate the employee. One of the rewards would be to provide

They are thinking of implement a strategic compensation plan as well as various other options that will allow its organization to focus on its strategic objectives and develop a comprehensive plan, considering base pay, short- and long-term incentives, benefits and growth opportunities. This kind of planning helps ensure that the compensation system will support the organization's long-and short-term objectives without overlap, which would have more than one pay plan driving the same objectives. The ultimate objective of this process is to ensure that the compensation system and other important facets attract and retain the desired employees and that it motivates them to do those things that support the business plan.

However, it is not easy for an organization to apply a variable pay program. Like John& Traci (2004) stated in their article that if the companies do not manage variable pay plan effectively, the outcome could be less than stellar. There are several concerns for the organization to think about. Thomas (2003) suggested that first concern is about the performance measures. It is difficult

Today, competition between the businesses is extremely high thus companies need to find ways to be competitive. Organizations prepare the best market strategy to increase the company performance and the ways to keep their employee motivation on the highest level to perform well within the competition. At that time, several incentive pay programs play an important role for every organization to perform well within the competition.