...Assignment 4: Recognizing Employee Contributions Strayer University Alberta Thrash, PhD HR Management Foundations Incentive Pay The main goal of employee incentives is to motivate employees to achieve their highest performance possible. Human Resources must first determine the needs of the employees. Once those needs have been assess, then they must decide on an incentive plan that focuses on those particular needs. “Incentive plans must showcase what the potential may be if the purpose is fulfilled” Kishore & Rao, 2013). For this particular company one method that could be used to determine incentive pay is by basing it on individual’s performance. First you would identify who your top performers may be. Human Resources should communicate with them and inform them of the incentive plan for performance bonuses based on sales for the quarter. Even though this is an individual based performance plan it can also be applied to groups within the organization. For example, the internet sales team of the company would participate in a different form of performance bonuses based on the teams internet sales achieved. For individuals, it motivates them to self-satisfying goals set by the company and shows them that they are assets. For groups, it can help to encourage and motivate teamwork. In regards to the company’s performance, this plan enforces an increase in the profits of the business. Another option available is to pay individuals based on group performances. Due to...
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...many methods to determine the proper incentive plan. It is very important to understand whether the company needs an incentive plan to compensate for short or long term cash flow. This determination will help the company become aligned and the right path to creating an incentive plan that will flourish within the future. Because this is a retail company with both online and in store sales, it is important to evaluate the merchandise being sold. Is the merchandise high end or does the merchandise that’s being sold catered more to the volume in a lower market. The vision of the company will align with this if evaluated properly. Long term incentives are better for employees because it creates capital but it can be hard keeping employees motivated with long term incentives because it takes too long to reach the goal.. “For example, rewarding assembly line workers for increased production may result in a sacrifice in quality. The framework can be pre-established, or it can be built into the plan over time” according to Smith (2007). Legal Requirements & Additional Benefits There are five basic benefits required by law. * Workers Compensation which gives employees benefits if they are ill or if they are injured. * Social Security Taxes are required to be paid on employees. * Family and Medical Leave is time that employees are granted to take time off for emergency family issues such as the birth of a child. * COBRA Benefits are required for employers with 20 or...
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...Compensation and Benefits Strategies Recommendations May 20, 2014 Steven Colon James Thompson Oscar Caldera University of Phoenix HRM/531 Robin Sully Compensation and Benefits Strategies Recommendations The following paper will be about the development of the compensation and benefit recommendations for Mr. Bradley Stonefield. This development will have a market evaluation with researches on what companies in the relevant market are providing to employees from a total compensation perspective. With the results of the research, we will then take a look at the compensation structure. With these two outcomes, we will be able to recommend a position in the market. We will also be creating a total compensation and benefits strategy, consider the use of performance incentives and merit pay to recognize and engage employees. In creating these compensations we will have to identify laws related to the benefits and pay program. Results for the Market Evaluation The results for the market evaluation will show that it will be very competitive for a small startup business to hire qualified and experienced limousine drivers in Austin, Texas. According to the Yellow Pages (2014), Austin has over 113 limousine business competing in the same market. With these many companies operating in the same market may result in several issues when it deals with human resources (HR). One of the issues with this type of market is that should assume high employee...
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...Incentive Pay HR Management Foundations December 14, 2014 Determining Incentive Pay All organizations and companies have a pay structure. This pay structure is often very rigid and dependent upon many factors. This pay scale is something that applies to all employees and helps dictate base pay and any future raises. While this pay scale is not adjustable, setting performance-related pay is often at the discretion of the company. This is called incentive pay (Noe, 2011). Often, incentive pay is tied to performance or other metrics set by the company. In general, incentive pay is a way to bolster employee production while helping the company meet profit goals. However, the incentive pay must comply with HR policies and standards. According to Noe (2014), a study of 150 companies and organizations revealed that the way a company paid their employees was strongly linked to employee satisfaction and their level of profitability. As mentioned before, incentive pay is monetary compensation beyond the employee’s regular salary. It is often used to energize or direct an employees’ behavior as it is often linked to predetermined behaviors or outcomes (Noe, 2014). Incentive pay can be found as a commission for those in sales, or a bonus for those in other fields. Offering incentive pay can be beneficial to the company for many reasons. Employees are often willing to work harder or find creative ways to problem solve when money is on the line. In addition, incentive...
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...Running head: Compensation Planning 1 Compensation Planning Jonathan Phifer BUS 434 Compensation & Benefits Management Instructor Justin Furlong July 8, 2013 Compensation Planning 2 Compensation Planning When HR is designing a strategic compensation plan for and organization there are several key factor to consider which should include criteria for strengthening performance, containing cost, limiting liability, and promoting fair pay for employees. To ensure long term success and organizations need a compensation package that links organization strategy to good performance and ties it to the labor market. It also must be within legal compliance of the law and provides a sound salary structure pay for the employees. With the collaborative between these components they must be designed in such a way that it will support the organization business strategy which will stand the test of time and allow the organization to be successful. In this paper I am going to identify these key components and while designing a compensation plan for Holland Enterprises to allow the organization to be successful in the market place. The global market over the last two decades has placed greater stress on organizations regarding their ability to be competitive and profitable...
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...2010. Nr. 5 (24). Research papers. CRITICAL ISSUES FOR COMPENSATION AND INCENTIVES MANAGEMENT: THEORETICAL APPROACH Ramunė Čiarnienė, Milita Vienažindienė Kaunas University of Technology, Vilnius Co-operative College For most people, pay is a primary reason for working. Indeed, compensation is at the core of any employment exchange, and it serves as a defining characteristic of any employment relationship. The study focuses on critical points of compensation and incentives management. The fundamentals of a good incentive program include the elements of vision, potential, communication and motivation and can be realized if incentive promises are fulfilled – by both employer and employee. The aim of the paper is to identify the most important attributes of compensation and incentives management. Research method is the analysis and synthesis of scientific literature, logical, comparative and graphic representation. On the base of analysis, authors of this paper present the model of incentive system for positive employee attitudes and behaviors. Keywords: compensation, employees, incentives, management. Introduction Compensation refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship. Pay may be received directly in the form of cash (e.g., wages, merit increases, incentives, cost of living adjustments) or indirectly through benefits and services (e. g., pensions, health insurance, paid time off). Programs...
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...365 Compensation and Benefit Systems November 8, 2009 Fair and Equitable Compensation The bases on which fair and equitable compensation are determined, and administered, can significantly affect employee productivity and the achievement of organizational goals. Establishing compensation programs require both large and small organizations to consider specific goals. Employee retention, compensation distribution and adherence to the budget must be carefully weighed against the overall organizational goals and expectations. Compensation must reward employees for past performance while serving as a motivation tool for future performances. There are many different ways to motivate employees. Employers can motivate their workers as individuals, groups, teams, or the organization as a whole. Motivation takes forms like offering rewards, improving working conditions, or employee recognition. When people get motivated, they will have a reason to put more efforts on what they are doing. Base salary is only one aspect of a retention plan for important employees. Benefits and incentive plans are valuable perks in recruiting and retaining essential employees. Benefits are an established and integral part of the total compensation package. In order to have a sound benefits package there are certain basic considerations. By utilizing a flexible benefits package, employees are able to choose those benefits that are best suited to their individual needs. Incentive pay plans can be advantageous...
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...Evelyn E. Joseph HRM 500 – Human Resources Management Foundations Dr. Alberta Thrash, Instructor Strayer University December 14, 2014 Two methods an HR professional could use to determine incentive pay. Specify the principal manner in which the proposed methods take into consideration individual, group, and company performance. As an HR manager of a new retail company that is growing in revenue and profitability it is important to enhance the base compensation and benefits package offered to employee. Many companies are using employee incentive and reward schemes to help them motivate workers, increase productivity and recruit and retain valuable staff. Incentive schemes work by encouraging employees to associate excellence with reward. This is achieved when employees consistently see their colleagues being rewarded for delivering excellence in their field. Over time, it can lead to the development of a more positive workplace ideology which in turn can help to keep individual employees and teams of workers motivated (www.ovationincentives.com). Incentive pay is the forms of pay linked to any employee’s performance as an individual, group member or organization member (Noe, Hollenbeck, Gerhart, and Wright (2014) p. 371). The two methods often used to determine incentive pay are merit pay and profit sharing. Merit pay is system of linking pay increases to ratings on performance appraisals (Noe, Hollenbeck, Gerhart, and Wright (2014) p. 375). A healthy competitive...
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...Singapore Tax Rates and Income Tax System Introduction Singapore’s is one of the world’s biggest economies. Since the global financial crisis and more recently, the Eurozone sovereign debt crisis and the downgrading of the US credit ratings, many global and local investors has sought Singapore as a new safe haven for investing their wealth in and setting up businesses and regional headquarters. In 2010, Singapore’s economy has rebounded close to 15% year on year. Singapore, due to its scarcity of natural resources, depends heavily on foreign investments for growth and economic expansion. Therefore, the government’s policy is to advocate Singapore as a global hub for international trade and commerce. Over the past years, Singapore has always been ranked of one the frontrunners in the world in terms ease of doing business (1), world leader in foreign trade and investment (1), best investment potential for 16 consecutive years (2), most open economy for international trade and investment (1). Source: http://www.weforum.org/reports/global-enabling-trade-report-2010?fo=1 http://app.www.sg/who/196/Business-and-working-conditions.aspx http://www.doingbusiness.org/data/exploreeconomies/singapore/ Another significant reason Singapore continues to attract both local and overseas investment is due to its tax regime – well-known for its attractive corporate and personal tax rates, tax relief measures, absences of capital gains tax, one tier tax system and extensive double...
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...Performance-based Pay Employee benefits are incentives that businesses create in order to draw employees to the company and reward them for good performance. Some benefits are bonus plans that award employees that make the most sales or have the highest production rates. Others are stock option plans that allow employees to purchase company stock at a discount. Incentive schemes are one of the most popular and potentially effective forms of benefits available for employees, particularly those involved in the sales process. These schemes reward those who meet or exceed their targets, and provide a financial or non-financial incentive to encourage high productivity. The primary advantage to employee benefits is motivation. The best kinds of benefits are used to attract talented business leaders to the organization. These leaders then increase performance as whole with awards for increasing efficiency or creating new solutions for business issues, companies can also encourage creativity and change throughout the organization. Many of the advantages associated with introducing incentive schemes as benefits for sales employees are self-explanatory. In the first instance, once employees are drawing a salary there is frequently little reason for these individuals to work as hard as they could. While sales employees would expect to lose their jobs if they repeatedly failed to meet their targets, many employees coast through, fulfilling the minimum requirements but failing to meet their...
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...People Respond to Incentives Page 2 in your text briefly relates incentives with choice of an action. In terms of cost benefit analysis, incentives can be viewed as benefits or ( negative benefits ). For the society, we would hope that incentives urge people to do more of a good thing and less of a bad thing Best selling authors Levitt and Dubner ( Freakanomics) described an incentive as a bullet, a lever, a key: an often tiny object with astonishing power to change a situation. There are at least three basic flavors of incentive: economic, social, and moral. All of which involved some type of costs and benefits . According to Levitt and Dubner, every one of us regularly passes up opportunities to maim, steal, and defraud. The chance of going to jail—thereby losing your job, your house, and your freedom, all of which are essentially economic penalties -- is certainly a strong incentive. But when it comes to crime, people also respond to moral incentives (they don't want to do something they consider wrong) and social incentives (they don't want to be seen by others as doing something wrong). For certain types of misbehavior, social incentives are terribly powerful. In an echo of Hester Prynne's scarlet letter, many American cities now fight prostitution with a "shaming" offensive, posting pictures of convicted johns (and prostitutes) on websites or on local-access television. Which is a more horrifying deterrent: a $500 fine for soliciting a prostitute or the thought...
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...with competitors (Bauer & Erdogan, 2009). In this regard, firms must ensure that they appreciate their employees’ efforts in attaining the set goals of the organization. This presentation, thus; seeks to elaborate on the process of recognizing employee contribution that firms can utilize. Methods to Determine Incentive Pay Incentive is the one of the ways through which companies motivate their employees in order to increase productivity. There are diverse incentives that companies can employ, although the most commonly used is the pay for performance incentive. A research conducted in a number of firms in the United States of America established that 86% of employees participating in the survey increased their productivity following provision of monetary incentive. the remaining 14% increased their productivity following the announcement of an upcoming promotion, a well as the promise of long employment tenure (Brun & Dugas, 2008). This is an illustration that adoption of incentive pay is vital for the enhanced performance and productivity of employees. In essence, it is the duty of the human resources manager to device methods through which incentive pay will be...
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...quality workers. There are many different ways to compensate workers but the focus of research has been on that of performance based, incentive based and total compensation strategies. These each have a different benefits for different organizations. The performance based compensation is one that rewards workers for completing projects by certain deadlines or with certain standards. This strategy is beneficial for an organization that has strict deadlines and wants to attract workers who think what they accomplish should speak for itself. This compensation rewards workers who achieve a certain task in a given amount of time and is rewarded by benefits or promotions. This strategy is beneficial for retaining skilled workers who are competitive and high performing. The incentive based compensation strategy is one that rewards workers who attain professional achievements. These achievements could be joining a professional organization or gaining a professional certification. This strategy is beneficial to the organization as it helps to demonstrate the credentials and professionalism of the company displayed by the achievements of employees. This strategy can be beneficial for companies that value a high esteem and overall image. The total compensation based compensation strategy is one that combines monetary compensation with benefits to become more appealing to prospective and current employees. This strategy looks to limit the total cost...
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...if these assets have to be developed and made productive, incentives should be offered. Though there are many kinds of incentives that can be offered ,it was found that profit sharing resulted in the greatest yield to the human assets .Employees knew that if they became productive they would earn a bonus and this would help hem recognize their productive levels . Building of human assets through profit sharing: Retirement savings plans and profit sharing were considered to be the most important human asset building activity and though revolutionary in nature with a little foresight and great planning can be converted into a productive tool which could never be refused by any employee. Profit sharing as has been empirically proved, it the best ways to retain employees in an organization .when employees settle themselves into an organization for long periods of time they get associated with the firm and become the most productive asset and are very simple incentives to attract the right kind of people, invest in them and protect their retirement benefits. These are considered to be most common method of building human assets . organizations have to recognize that employees needed to build their assts while at work and it was in their interest to see that these needs were met .Employees also realized that the longer they stayed with the company better would be their retirement benefits. This was an economic incentive given by employers to build the strong human asset base...
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...Q) Career planning and its benefits? What is Career Planning? Career planning is a lifelong process, which includes choosing an occupation, getting a job, growing in our job, possibly changing careers, and eventually retiring. The Career Planning Site offers coverage of all these areas. This article will focus on career choice and the process one goes through in selecting an occupation. This may happen once in our lifetimes, but it is more likely to happen several times as we first define and then redefine ourselves and our goals. Process The career planning process has four steps: Step 1: knowing yourself Step 2: finding out Step 3: making decisions Step 4: taking action Step 1: knowing yourself Begin by thinking about where you are now, where you want to be and how you’re going to get there. Once you have thought about where you are at now and where you want to be, you can work on getting to know your skills, interests and values. Begin by asking yourself the following questions: Where am I at now? Where do I want to be? What do I want out of a job or career? What do I like to do? What are my strengths? What is important to me? At the end of this step you will have a clearer idea of your work or learning goal and your individual preferences. You can use this information about yourself as your personal ‘wish list’ against which you can compare all the information you gather in Step 2: finding out. Your personal preferences are very useful for helping you choose your...
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