Compensation
In this assignment the upper management has asked Eric Garcia to suggest a new compensation plan specifically for the Puerto Rican team that include: A description of a compensation package for the new employment team, why the pay system will work, what reward package would motivate the employees to increase performance, compensation plan’s benefits to the individual and the company and how the Puerto Rican compensation plan differs from the parent company’s compensation plan. He must propose the plan and a rationale to the Human Resources Department for approval.
Compensation package for new employment team
The level of pay in a company is one or the most important aspect of the employee; they will pay close attention in this category in terms of fairness. If the employees think the pay level for the job is not acceptable the lack of commitment and mistrust will be reflected in their performance. According to University of Phoenix Week Five Compensation (2012), there are four key challenges of pay planning and administrative system: (1) Understand the pay levels of economics and legal factors. (2) To develop a systematic pay structure. (3) Combine compensation and general business strategy. (4) Address key policy issues. Granting bonuses to new heirs it can offer a competitive compensation package, especially for those with special required skills by the company. Overtime will be provided by request and it can be rotated among the employees so it can be share equally.
Why pay system will work
The pay system will work because the team will be paid not based on what is in the market. Instead the company will make an assessment on what must be paid to attract and retain the correct personnel, what the company can afford to pay, and to have the available requirement to accomplish the company mission. Developing a good job description will help to designed a pay system that the organization is willing to pay for common job characteristics such as skill, responsibility, and working condition. For example since the company will be embarking a new direction to Puerto Rico one of the especial skill will be the Spanish language. Knowing all those key elements the pay system of the company will work.
Rewards package that would motivate employees to reach performance
There is several rewards to motivate an employee to reach out his/her performance. Those rewards will be divided by two, reward system the financial reward and the nonfinancial reward. In the financial rewards will include the direct (salaries) and indirect (benefits) payments and in the nonfinancial rewards will be everything that enhances an employee sense of respect, social, mental, and physical (University of Phoenix, 2012, Week five Compensation). However, the objective most important in the pay system are the three dimension of equity; (1) Internal (the organization are paying fair?), External (the organization are paying fair compare to other organization?), and individual equity (the individual are being paid fairly to other individuals doing the same job in the same organization?). Also to be effective in the organization the reward system should provide four things: (1) treatment of individual needs, (2) equity with external market, (3) good level of reward to complete basic needs, and (4) equity within the organization (University of Phoenix, 2012, Week five Compensation). Managers need to be careful to not confuse pension plan as a reward because a pension plan can retain an employee’s, but it will make little to improve or motivate performance base on the length of the benefit of each other.

Compensation plan’s benefits
Managers on compensation plan benefits need to think very carefully on what they need to offer base on the benefits programs. By knowing that benefits falls into the employee services, payment for time not worked, security, and health the company or the individual can have a clear understanding the compensation plan benefits that will be implemented. The objective to set a compensation benefits plan program is to combined salary and benefits into a single package that will set the organization goals. Some of the benefits will be Social Security, Pension Plan, Sick and Annual leave, Disability insurance, Life insurance, Medical coverage, vacation, Holydays, and some tuition aid as Thrift Saving Plans.
Conclusion
The compensation package systems are made to motivate, retain, and attract employees to achieve external and internal equity. Also will maintain a balance on the compensation between regular employees and supervisors. The objective of is to develop a pay system to provide monetary pay to each skill or job set for the team and to establish a standing procedure for increasing benefits. To create a job base system it needs four tools; a job evaluating plan, job analysis/description, pay structure, and a pay survey. The four pay policy are important s well; pay compression, pay secrecy v/s openness, pay raises, and the pay system inflation (University of Phoenix, 2012, Week five Compensation). Payment for time not worked, employee services, security and health are the three major package components. Even though the cost of benefits is high, the employees take them very seriously. This is because the employers have not done their work well on job cost analysis for benefits program.

Reference University of Phoenix. (2012). Managing Human Resources, Ch. 11 . Retrieved from University of Phoenix, HRM/531PR website. University of Phoenix. (2012). Managing Human Resource, Ch. 12 . Retrieved from University of Phoenix, HRM/531PR website.