...HRM 430 Compensation & Benefits Devry University Compensation Definition Compensation is defined as the amount of total monetary and non-monetary pay to an employee from an employer in return for work performed as directed in the job description (Heathfield). Compensation can also be thought of as direct financial compensation, indirect financial compensation, and non-financial compensation. Compensation is the reason why millions of people go to work every day. Some forms of monetary compensation can include payments such as profit sharing, bonuses, overtime pay, sales commissions, and checks. Then there are the forms of non-monetary compensation that could include things like a company-car or a company-paid house. For example, in the military we have company-paid housing. Some people might not think of the military as a company but many companies have modeled their staffing just like ours and we have forms of monetary and non-monetary compensation as well. Overview of Compensation Philosophy A good compensation philosophy shows an employers’ commitment to how much it values its employees. It gives employees something to reference when talking about pay during any type of negotiations. Its purpose is to attract the best candidates and to motive and retain its current employees. In order to ensure that a company can attract, retain, and motivate its employees it compensation plan must contain the following components: base pay, incentive pay, and benefits...
Words: 621 - Pages: 3
...Casmin Joseph Compensation/ Benefits Week 2 Chapter 1 1. Compensation is the total reward received by an employee in exchange for services performed for an organization. It can include both direct pay (salary and wages) and indirect pay (benefits programs). Also it represents the intrinsic and extrinsic rewards employees receive for performing their jobs. A company’s compensation system is based on these two types of rewards. 2. Five jobs that I believe rate highly on the five core job characteristics are teachers, scientist, loan officers, chefs and police. The jobs listed are of individuals who not only enjoy the outcome of their job but are also motivated by their employers. The feedback that they receive is also what makes them able to improve their skills and talents. When they are able to do this they are able to satisfy their customers. 3. Lowest-cost Strategy Wal-Mart- is known for their everyday low prices strategy. They are able to do this by obtain the goods at the cheapest price and a resell to the consumer at cheap prices, this in turn cause savings among consumers. Wal-Mart able to carry out this strategy developed close relationship with their suppliers and manufactures. The purchasing of large quantity of stock allowed them to be able to saving through these developed relationships. Due to the savings that customers were receiving from shopping at Wal-Mart, they frequented the store often. Differentiation Strategy Pepsi Co is known for...
Words: 575 - Pages: 3
...Mgt 1008 – Compensation and Benefits “We Care” Company is one of thirty home care service providers in the United States and in 2011 merged with a company called “Sunshine” which was also a home care service provider. The Company now has 45 offices domestically and an employee population of 600 employees (350 employees from “We Care” and 250 employees from “Sunshine”). The Company expects to increase their employee population by another 300 people by 2016. The COO (Chief Operating Officer) of “We Care” has determined that there are a number of duplicate jobs and some jobs are obsolete based on the new business strategy. The COO would like to streamline the present jobs and create new ones that will support the new business strategy going forward. The goal of the Company is to be the leader in the home care services industry within five years. At the same time, the CFO (Chief Financial Officer) has determined as a result of the merger, the largest budget expense is in the area of employees’ salaries and benefits. She would like to reduce the salary and benefit expenses by 15% over the next 2 yrs. She is aware of the initiative to create new jobs which will support the new business strategy, but also needs to address the large expense items which appear in the budget. The Director of HR has selected you, a Compensation & Benefits Consultant to work on this “special” project which is to recommend which jobs should be eliminated and created to support the new business...
Words: 569 - Pages: 3
...The six forms of deferred (stock) compensation include: Incentive stock options, Non-statutory stock options, Restricted stock, Phantom stock plans, Discount stock options, and Stock appreciation rights. * Incentive stock options entitle executives to purchase their companies’ stock in the future at a predetermined price. * Compared to incentive stock options, non-statutory stock options do not qualify for favorable tax treatment. Executives’ pay income taxes on the difference between the discounted price and the stock’s fair market value at the time of the stock grant. * Restricted Stock means that executives do not have any ownership control over the disposition of the stock for a predetermined period, often 5–10 years. Executives must sell the stock back to the company for exactly the same discounted price they had at the time of purchase if they terminate their employment before the end of the designated restriction period. * A phantom stock plan is a compensation arrangement whereby boards of directors promise to pay a bonus in the form of the equivalent of either the value of company shares or the increase in that value over a period of time. * Discount stock option plans are similar to non-statutory stock option plans with one exception. Companies grant stock options at rates far below the stock’s fair market value on the date the option is granted. * Stock appreciation rights provide executives income at the end of a designated period, much like...
Words: 584 - Pages: 3
...The vice president of human resource is liable to play a huge role for the successful administration of any organization. I got the realization of this fact when I was designated as the VP of HR in my hospital. Since after this promotion, the challenges o and responsibilities of my job had been increased considerably. Therefore, obviously besides providing the solutions of the problems, I am also expected to out forward new ideas as to enhance the productivity of the workers. Human resource is the biggest and most valuable asset for every organization. In fact, according to the beliefs of many businessmen, a sincere workforce is more important than the huge investments, if a company wants to progress in business. Human resource acts like the wheels that enable an organization to move towards its goals. If the human resource is withdrawn from an organization, the whole system will be stopped because there will be no one to perform any task in the latter (Compensation’s Role in). As a result, it gets highly critical for the organizations to be strongly concerned with the workforce related issues. Every organization, irrespective of its nature or type, is bound to remain careful and vigilant when it comes to cope with the problems of its human resource. This is all that I have come to conclude after the vast experience I have had as VP of HR. Quite obviously, it is practically not possible for any organization to absolutely come up to all the expectations of the workers...
Words: 1643 - Pages: 7
...Compensation and Benefits Kathleen Fournier Professor Jama Rand Human Resource Management June 6, 2011 Evaluate whether or not the compensation system at Collegiate Promotions is effective. Since the compensation for the independent sales representatives is ultimately based on their individual performance, this system could be affective for highly motivated and skilled sales reps that are used to compensation based solely from their products sold. A possible negative factor involved in the compensation system is not having defined geographic locations identified for the sales representatives to service. This introduces much more competitiveness amongst the sales reps and could create hostility, which could result in lack of motivation and loss of sales representatives. In the event that sales representatives become disgruntled, unmotivated and or quit, regardless of them being independent and not employees of Collegiate Promotions (CP), this affects CP. It affects their overall profit because their product is not getting sold. Due to this potential impact, a safe assessment of this compensation system would be that it would not be the best and effective for CP’s bottom line. Discuss why a sales representative would try to sell at the top of the price range? Why at the bottom of the price range? A sales representative’s decision of setting their price range will be the result of a few different factors. If a sales rep plans...
Words: 701 - Pages: 3
... | |Compensation and Benefits | |Human Resource Management Coures | | Employee compensation and benefits are critical factors in the new hire acceptance process and in employee retention. Firms must develop and offer exceptional compensation and benefit programs to attract and retain the best and most talented employees while making them feel proud, valued, and as appreciated members of the organization. An organization’s fundamental purpose and objective of compensation is to provide appropriate and equitable rewards to employees at a level that matches their skills, abilities, and contributions to the organization (DeNisi, Angelo S., Griffin, Ricky W. 2008, p. 284, para.1). Compensation is the human resource management function that deals with every type of reward that individuals receive in return for performing work – including financial and nonfinancial rewards. Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of employee benefits. Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (Cascio, 2006, p.418, para. 1). Direct compensation is an employee’s base...
Words: 1684 - Pages: 7
...HRM430: Compensation & Benefits Chassity K. Moody DeVry University Online In a job market like the current one, attracting and retaining the best help is challenging. The key to finding and keeping good employees is creating an environment in which they would want to work. We have all heard about surveys that demonstrate that it is far more than mere compensation that motivates employees to stay where they are. It is the same when potential candidates are assessing their options and choosing which opportunity they will accept. The current competitive conditions in the business world make it difficult to acquire and retain the top talents. Once the organization is able to identify, it can be unable to offer the right pay and to manage the pay increases to retain top talents. The compensation strategy is the extremely important piece of the overall HR Strategy to keep the company competitive and successful. On the other hand, the compensation strategy is important to keep the personnel budget under the control and to manage the jobs in the right salary (pay) brackets. (Ulich, D, 2011) The focus on compensation is most often the most important source of the job. It is taken for granted because of the amount of salary that is received. In non-profit organizations there are obvious challenges when it comes to providing competitive salary and benefits to attract and keep the best staff. If Family Christian Health Center could market their strengths, it would make...
Words: 1408 - Pages: 6
...RUNNING HEAD: COMPENSATION AND BENEFITS Compensation and Benefits September 7, 2012 Compensation and Benefits Introduction This paper will discuss how to leverage labor relations for the improvement of the quality of health care provided by the corporation. There will be a strategy for compensation practices tailored to corporate needs. Guidelines will be provided for the management of benefits and variable pay specific to hospitals. Further guidelines will be made for the management of merit pay for hospital employees. Leveraging Labor Relations for the Improvement of Quality Care Leveraging of labor relations for the improvement of quality care begin with happy employees. Within health care settings patients expect to be treated with competent and compassionate healthcare employees. These patients deserve our utmost quality care which will lead to healthier patient populations and overall improve their wellbeing. The next step is to seek out employees who will meet the goals set forth by the hospital. These employees will treat each patient with dignity and respect while providing patient care also when dealing with family and friends of the patient. Effective labor relations begin with effective actions provided by management. This may be accomplished by routine job assessments which will seek to determine if the employee is providing quality care to the patients. According to Adelman (2012) it is important that management make their selves visible and available...
Words: 1338 - Pages: 6
...Sentara Healthcare Benefits Packages Rodger Walker, Student # 4121227 American Military University Professor Jennifer Halsey Compensation and Benefits (HRMT 412) 06/22/12 Introduction I chose to use Sentara Healthcare as my subject organization for this paper. Sentara Healthcare is an acknowledged leader in patient safety and quality innovation. Founded in 1888 as the Retreat for the Sick in Norfolk, Virginia, Sentara has ranked for more than a decade among the nation's top integrated healthcare systems by Modern Healthcare magazine and is the number one most integrated health care system for the last two years (Sentara). Sentara, a not-for-profit health system, operates more than 100 sites of care serving residents across Virginia and northeastern North Carolina. The system is comprised of 10 acute care hospitals, including seven in Hampton Roads, one in Northern Virginia, nursing and assisted-living centers, a 3,680-provider medical staff, and three medical groups with 618 providers. Another reason I chose Sentara Healthcare for my subject is that the organization offers one of the most diverse and comprehensive benefits packages I have ever seen. Body Sentara offers a Flexible Benefit Plan (FBP) that allows employees to choose from numerous grouped plan options, or employees can pick and choose individual benefits. Employees have the option of choosing health coverage including medical insurance, dental insurance, or vision insurance. For other health...
Words: 1871 - Pages: 8
...Title: Management Name: Institution: Performance pay also called merit pay can be defined as a system that remunerates its employees in relation to an assessment of individual performance and how well one works. Such systems basically are meant to align employees’ individual effort to the goals and objectives of the organization. Hence it is a reward to individual employees whose tasks have been considered to be above the set standards of an organization or above average. In cases and situations where the output produced or sales produced by an employee are hard or difficult to be empirically determined, performance pay is most applicable; for examples in the teaching profession. In cases of performance payment, individual performance is usually reviewed regularly through a process called performance appraisal. Performance appraisal helps in establishing and identifying if the set objectives and standards are in line with the performance results. Generally, performance pay is usually rewarded on basis of performance results rather than on the time worked, (Council, 2011). Performance pay for teachers has been quite a subject of contention in many places and especially in the USA. Performance pay is meant to compensate teachers based on a set of performance standard and does not consider a teacher’s level of education or the level of experience gained. Hence, the more outstanding results a teacher produces from the students, the more the teacher is to be paid. Merit...
Words: 1560 - Pages: 7
...Capítulo 9: Performance Evaluation and Management First Task: Answer the discussions question: 1. What is “360-degree feedback”? What advantages might it have over more traditional performance appraisal systems that use only downward feedback? What are some of the problems that could occur in using a 360-degree feedback system? a. El sistema de evaluación de 360 grados es conocido como el Método de Combinado Múltiple, y es la más moderna de las técnicas de evaluación. Utiliza la retro-alimentación de todos los sectores alrededor de la persona evaluada. Esta técnica sirve para medir el desempeño personal, medir las competencias del evaluado, y diseñar programas de desarrollo del mismo. ------------------------------------------------- Jefe o Supervisor ------------------------------------------------- Jefe o Supervisor ------------------------------------------------- Compañeros (Pares) ------------------------------------------------- Compañeros (Pares) ------------------------------------------------- Evaluado ------------------------------------------------- Evaluado ------------------------------------------------- Clientes (Internos/Externos) ------------------------------------------------- Clientes (Internos/Externos) ------------------------------------------------- Subordinados o empleados ------------------------------------------------- Subordinados o empleados Algunas de las ventajas que este sistema de evaluacion posee son: ...
Words: 1503 - Pages: 7
...Compensation and Benefits Plan Compensation and benefits curriculum have a considerable amount of influence in a business’ capability to allure and retain workforce. Understanding the company’s goals, attracting experience candidates, and reward the existing employees will expand benefits and compensations to fit the potential position and work environment. By built on a strong working characteristic, respected core benefits package with insurance, and superior compensations Freeley & Driscoll can expand and fill a new position more effectively. In response to Feeley & Driscoll, P.C.’s (the “Company”) operational goal of 10 percent annual revenue growth, a market development and expansion manager position will be created to lead the Company’s expansion into new markets beyond the New England demographic. In order to attract experienced candidates for the position, the compensation and benefits package must include a variety of options to meet the needs of the employee. At the same time, the proposed package should reflect the Company’s expectations for the position, utilizing a combination of fixed and performance-based compensation, and benefits to ensure the candidate is thoroughly invested in the Company’s success. Since its inception, the Company has built its success through the hard work and dedication of its employees. As a result, the Company has rewarded its employees with the highest salaries in its industry and region. The Company believes a mutually beneficial...
Words: 1756 - Pages: 8
...Determining a compensation and benefits plan that meets the needs of the employee and the organization can be difficult. Both parties need to be on the same page and be willing to compromise. In this proposal one specific job description will be used to how a compensation and benefits plan was chosen. Along with any obstacles or resistance that could be foreseen if the compensation and benefits plan were to be implemented. A small construction company that is bringing in multi-million dollar contracts is looking to make changes to its current compensation and benefits plan. The first position that needs to be looked at is the human resources manager. The human resources manager at a major construction company will have a multitude of responsibilities. They take care of the recruiting, posting ads, screening candidates, performing background checks and drug screens. They conduct new hire orientations, develop and maintain employee handbooks. Maintain employee files in accordance with laws. Responsible for handling employee relations and expected to be a first point of contact for employees needing assistance. They also take care of processing payroll in a timely fashion in accordance with payroll laws and process any pay increases or decreases, garnishments and last checks. Last they are the people the employees go to when it comes to their compensation and benefits packages. The company wants to evaluate the plan they have now and see if there are any changes that need to...
Words: 251 - Pages: 2
...Compensation and Benefits Plan Companies welcome employees to their organizations through job proposals that should set the tone for a good working relationship. Companies spend tremendous amount of time and resources seeking and attracting high quality talent and people who will hopefully contribute to the long-term success and future growth of the organization. Compensation and benefit packages can be strategic tools that reflect an organization’s commitment to the employee. They should be designed to meet the candidate’s needs and expectations to ensure acceptance. This paper represents a job proposal created by our team for the position of Senior Reliability Engineer at Medtronic, Inc. Various resources and websites were utilized to create a competitive package consistent with Medtronic’s high standards and company policies. Our team included justification of the chosen strategy and also identified potential obstacles and forms of resistance that could impede implementation of the package being offered. Background and Mission of Medtronic, Inc. Medtronic, Inc. was founded in 1949 as a medical equipment repair shop and has grown into a multinational company that has transformed the way debilitating, chronic diseases are treated (Medtronic, 2012). Its mission is to contribute to the human welfare through application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend...
Words: 1323 - Pages: 6
