Team Paper Total Compensation Plan 1

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Total Compensation Plan Barbara Chalfant, Lincoln Boe, Tisha Showers, Rena Brown, Jennifer Smith HRM/ 324 June 2, 2014 Steven Hartman Total Compensation Plan Riordan Manufacturing is a leader in the plastics manufacturing industry. As a fortune 1000 company, this employer of over 500 employees has not only made an investment into the products that roll off the production lines but most importantly the employees who help produce these products (University of Phoenix, 2013). In addition to the annual salary or hourly compensation these employees receive, Riordan makes additional investments in employees to better their wellbeing inside and outside of work. The complete benefit package offered by Riordan is known as the total…show more content…
Riordan’s top retirement plan is 401(k) savings plans with the one goal in mind, helping an employee retire, (Martocchio, 2009). The 401(k) plan is accessible to full-time employees who work at least 30 hours within a work week. An employee must work for the organization for at least 12months and be at least 21 or older to qualify for this plan (Apollo Group, 2013). The company’s pension plan is currently done through open enrollment though the process may change in the near future to automatic enrollment. The idea of doing an automatic enrollment will automatically enroll each and every employee in that particular retirement plan unless the employee chooses not to after the fact. The employee would have the option to opt-out at any point within a particular deadline which is 90 days. With the current open enrollment plan, Riordan employees have the choice to choose just how much of his or her paycheck will contribute to the plan and the company will equal that amount or up to a particular dollar amount. The benefit in enrolling into the 401(k) plan is the employee’s contribution is deducted before state and federal withholdings (Apollo Group, Inc., 2013). In order to involve workers and to promote worker engagement toward the 401(k) savings strategy, the company has established an interaction plan. When a worker is first employed as a new hire, the employee will obtain

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