...Compensation: Compensation Package is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission. Compensation can also include non-monetary perks such as a company-paid car, company-paid housing and stock options. Compensation is an integral part of human resource management which helps in motivating the employees and improving organizational effectiveness. Importance of Compensation Package: 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. The compensation strategy differentiates the organization on the job market and builds the attractiveness of the company for the top talents. They love to be hired by the attractive organization, they do not like to be hired by the average company offering the same conditions as any other average organization in the...
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...employees, you have been asked to evaluate different compensation strategies that are available for adoption within your organization. Compare and contrast at least three compensation strategies and determine recommendations for how they may be implemented within your organization. Name: Henry Rivera I.D. #: 000318961 Reference Title Finding #1 Godfrey, W. (2013, January). Compensation Strategy for Success. Prezi. Retrieved from http://prezi.com/j9k9_m_2qiwn/compensation-strategies-for-success/ Sager, Suzanne. (2011, September). Merit Pay Most Often Used in Compensation in Public and Academic Librarians. Library Worklife. Retrieved from http://ala-apa.org/newsletter/2011/09/01/merit-pay-most-often-used-in-compensation-for-public-and-academic-librarians/ Ojimba, E. (2004, November 15). Salary Basics – Developing a Strong Compensation Strategy. Salary.com for Business. Retrieved from http://www.salary.com/Small-Business-Advice/advice.asp?part=par410 Finding #2 McGladrey. (2011). Lessons from Recession Increasing Focus on Incentive Compensation Programs. Retrieved from http://mcgladrey.com/Perspective/Lessons-from-recession-increasing-focus-on-incentive-compensation-programs University of Wisconsin – Green Bay. (2013, April 9). Compensation Philosophy. Retrieved from http://www.uwgb.edu/hr/documents/CompPhilosophy0401.pdf Finding #3 Gerhart, B., Milkovich, G.T., & Newman, J.M. (n.d.). Compensation Strategy. Answer, McGraw Hill. Retrieved from http://mhanswers-auth...
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...Bailey DeVry University Professor: Patricia Meunier-Muenks HRM-430-67386 Compensation & Benefits Compensation Challenges for Wisconsin Electric April 16, 2016 Executive Summary The point of this paper is to look at the compensation challenges inside of Wisconsin Electric (WE Energies) and make a pay methodology that will benefit the organization, as well as the representative. With the steady change in today's business world, to have an upper hand makes it troublesome for managers to pull in and hold the most skilled representatives. Recognizing the organization's compensation procedure guarantees the organization offers the right pay and pay increases in compensation to keep top employees. When we hear the word compensation we consider paying a worker for their work performed, however, there is substantially more to compensation. Compensation and benefits, "incorporates not just compensation, but also the direct and indirect rewards and advantages the representative is furnished with consequently for their commitment to the organization. To decide compensation, companies should build up a pay and compensation program that diagrams a fair process for repaying workers" ("Compensation and Benefits," n.d.). This approach is a critical piece in helping HR to deal with staying aggressive and successful in the worldwide business sector. All through this paper we will talk about the compensation and benefits methodology of WE Energies and recommendations on the most proficient...
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...Total Compensation Methods Paper Total Compensation Methods Paper In all businesses, a company needs to make sure that their turnover ratio is maintained while, at the same time, keep their best employees. Compensation and benefits are just two ways that a company can do such things. The company must know what each individual is looking for at the same time. Not all employees want the same thing. Some employees want the steady 40 hour 5-day a week salary job, while others may want 4-day weeks and more paid time off. By providing a proper balance of all items such as compensation, benefit programs, and salary, the administration of the company can keep their excelling employees and may not have to worry about a huge turnover ratio. Compensation Methods “Compensation is a systematic approach to providing monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.” (HR Guide to the Internet) In this type of economy, many businesses will start to freeze wages and stop giving their employees any type of compensation. However, this may hurt the employee morale. By giving out a reward for an excellent job performance at times, a company could see a bigger profit in this rough economy. There are a few different types of compensation methods. These methods include but are not limited to the following: • Commission • Overtime • Bonus • Expense Allowances ...
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...CPDC The CPDC (Cost per Double Click) designates the amount paid to the affiliate for a click on a link or on an advertiser's graphic element, followed by another click on the advertiser's site. CPM CPM stands for cost per thousand impressions (M is the Roman numeral for a thousand). This means the advertiser pays for every thousand times the advert loads on the publisher’s page. This is how a campaign is normally priced when brand awareness or exposure is the primary goal. The advertiser and the publisher negotiate a fixed amount that the advertiser will pay for every 1,000 times an ad is shown. CPM is a very simple payment scheme, assuming the two parties can agree on a method for counting impressions. There are often stipulations in the agreement, such that the ad can only be shown on certain pages of the publisher’s site, or can only be shown on pages with a limited number of other ads. In a CPM relationship, the publisher is primarily concerned with maintaining a high-quality audience that has well defined interests or characteristics. The advertiser is primarily concerned with creating a message that will be noticed by their target audience, because they pay for the impression whether or not the user actually sees the ad. In general, the more knowledge a publisher has about a particular audience, the higher the CPM that can be charged, because the advertiser is able to more clearly know who their message is being delivered to. One prominent...
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...Organizational Objectives and Total Compensation in Different Markets Compensation laws are created to protect employees within an organization. Unsure of legal obligations in designing a total compensation plan, a client needs an explanation on how certain laws and regulations affect total compensation in their organization. The client’s organization employs 200 people, is a federal contractor, and operates in the biotech industry. Laws and Regulations The compensation laws and regulations are almost the same in all industries. In the case of a company that works in the biotech industry, special care concerning the compensation plan is required. This is because of the fact that this industry is believed to be involved in special hazards to health and security and is also inclusive of some revolutionary implications, moral, and ethical issues. The following are some of the laws relating to compensation plan in the industry that helps in identifying the different aspects of pay: A) The Fair Labor Standards Act (FLSA): It is one of the most important legislations concerning the total compensation plan for the small business owners and companies. It involves five major compensation laws that administer minimum wage, equal pay, overtime pay, child labor, and record keeping requirements (Martocchio, 2009). B) The Equal Pay Act (1963): This law is an amendment to the FLSA and restricts any kind of discrimination based on sex for men and women working at similar jobs and in...
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...HRM 598 Week 8 Final Exam Devry (TCO A) You are the compensation director for the New York Fruit Pies Company, which has 100 employees and is located in a small city of 50,000 in a rural agricultural part of New York State. You have just joined the company and have identified the need to create a revised compensation system. You are familiar with the four strategic pay policies that are typically found in pay models. Discuss each of the strategic policies as they would apply to your company. Are there any goals that your compensation system should incorporate? (Points : 30) 1. (TCO B) As the new lead for the compensation services team, you have been given the responsibility for developing a job-based point evaluation plan for the Satellite-to-Home video company. The bulk of the employees are in-home service technicians with technical skills and customer-service expertise. You meet with the compensation services team to discuss the assignment. What are the four compensable factors that you want to include in the plan? What are weights that you would assign to each factor? What is the definition for each of the factors? What is your justification of why you have selected each factor? Explain why you weighted it the way that you did. Briefly describe a job-based point evaluation plan. Discuss four compensable factors you would include in the job-based point evaluation plan. Be sure to define each factor, justify why you selected it, and provide the weights or...
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...Since compensation and benefits are vital part of HRM in most of the organizations, education of compensation and benefits reflect many practices and concepts pertaining to HRM. Human Resources practices do not operate in parts. They need to be strategic, logical and planned in the situation of the bigger organization, of which they are a part. Anyone in HRM is first a business partner of the organization and then an HR professional in their individual disciplines such as compensation and benefits. A business partner is the one who is loyal to the company passionate about the business first and then to his or her respective discipline or area of work. This reflective research paper will also identify the major elements of compensation and benefits in addition to teaching strategies of these functions. It is important to implement compensation and benefits in a mutually beneficial way, for the individual and the organization. Prior to any discussion about compensation and benefits, it is important to understand the distinction between direct and indirect compensation. Direct compensation refers to any reward, usually in cash and stock, given in direct proportion to performance. Indirect compensation is not related to performance and is given in the form of various benefits. Compensation and benefits strategy must cascade from the organizational mission and the HR strategy. This is true of all the HR functions. However, it is particularly critical in compensation and benefits...
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...Chapter 1- The Pay Model Compensation: Does it matter? Compensation is one of the most powerful tools organizations have to influence their employees. General Motors (GM), like Chrysler, has, for decades, paid its workers well—too well perhaps for what it received in return. Having labor costs higher than the competition, without corresponding advantages in efficiency, quality, and customer service, does not seem to have served GM or its stakeholders well. On the other hand, Nucor Steel pays its workers very well relative to what other companies inside and outside of the steel industry pay. But Nucor also has much higher productivity than is typical in the steel industry. Wall Street financial services firms and banks used incentive plans that rewarded people for developing “innovative” new financial investment vehicles and for taking risks to earn themselves and their firms a lot of money. Troubled Asset Relief Program (TARP), which included restrictions on executive pay designed to discourage executives from taking “unnecessary and exces-sive risks.” In an opinion piece in The Wall Street Journal, entitled “How Business Schools Have Failed Business,” the former director of corporate finance policy at the United States Treasury wrote that “misaligned incentive programs are at the core of what brought our financial system to its knees.” 7 He says that we “should ask how many of the business schools attended by America’s CEOs and directors educate their students about the...
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...Case Analysis: When Salaries Aren’t Secret Case Summary RightNow!, a retail chain specializing in women’s clothing, led by ◦ Hank Adamson as CEO. ◦ Charlie Herald as the VP of HR and ◦ Harriet Duval as the CFO. Someone exposes the salaries of all 165 employees via email. Since RightNow! Was exapanding fast, they hired people at a wide range of salaries; making the new salaries disparate from existing ones. Immediate reaction of employees - comparing each other on the basis of pay. Several started contacting HR to discuss disparity in pay. Charlie and Harriet come up with two opposing views on how to handle the situation. Hank must decide what to do. Charlie’s View Opened Pandora’s box and facing possible resignations and lawsuits. Need to turn this into a positive result. Keep salaries public henceforth. ◦ No need to have extra security and secrecy built around salaries. It might happen again anyway ◦ Most people share what companies pay online anyway ◦ Employees will self-correct pay disparities ◦ Fame to RightNow! Because of this policy Harriet’s View Short-lived gossip and furor which will pass soon. Disparities in income are present in all companies. Cant spend time explaining to each employee why they earn more/less than someone else Since the cat’s out of the bag, the company should revisit pay disparities and conduct review. Beef up computer security to avoid future incidents like this Commentator’s Advice - Victor Sim Exposing incomes would lead...
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...The value conflict that could present itself with regards to the PDQ memo, could be those individuals on the Board of Directors that agree with the salary of Mr. James. Some may argue that he is in fact worth every penny that he is paid and it is a salary well earned. Fallacies There were a number of fallacies identified by HR in the communication to the Board of Directors. The three fallacies were Mr. James’ personal wealth, the family relation to the PDQ founder and the negative attitude towards the town and other employees that were expressed by M. James. The mentioning of Mr. James own personal wealth was used to distract the Board from the issues at hand. The HR Department used an article published by two Wharton professors as a way to sway the argument. The memo notes that Mr. James is the only grandson of the PDQ founder and that he himself stands to inherit the company one day. This ties in closely with the personal wealth fallacy, in that Mr. James does not need this job because he is already quite wealthy, and will be even more so one day in the future. Finally, Mr. James exemplified a negative attitude towards the...
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...Total Compensation and Benefits Package of UCBL Salary Structure Refer to the Salary & Remuneration Package Structure for Supervisors and Executive Staff of UCBL for details regarding the structure of salary and allowances for different units under UCBL Revision of Pay Elements The compensation structure may be revised, if necessary, with the approval of the Director, Admin/HR, and Head of the Dept., Finance and the Chief Executive. Employee Compensation Records Employee Pay Records are maintained by the Personnel & Admin Department for Workers and Supervisors and by the Human Resource Department for the Executives. These departments maintain personal file of all employees where all records in regards to the employee are kept in addition to any soft copy (in computer database) maintained by the departments. These records are confidential and should not be accessible to any unauthorized persons (authorization defined by HR or Personnel &Admin dept. head). Basic Employee Benefits for Permanent Employees Provident Fund The Company's Provident Fund is a funded scheme. All confirmed and permanent employees are entitled to be members of the Provident Fund. The employee contribution, equal to 10% of the basic salary, is deducted each month through the payroll. The Company's Provident Fund is a funded scheme. All long-established and enduring employees are at liberty to be members of the Provident Fund. In the Provident Fund Ledger, both the employee's and...
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...Billy’s Bar-B-Q MGMT335-01 Unit 4 Assignment Abstract Billy’s Bar-B-Q wants to open a new Texas style restaurant in the North. This paper will identify the different systems of compensation as well as the benefits and disadvantages of each. It will define comparable worth and how companies can compensate their employees based on this and not break any federal legislation. Billy’s Bar-B-Q What are the different types of compensation systems? What are the benefits and disadvantages of each type of compensation? Companies have to compensate their employees for the work that they do. What is Comparable Worth? How do companies attempt to compensate their employees based on the Comparable Worth concept without violating the federal legislation? Companies have many laws they have to follow and by basing the compensation on comparable worth, the companies are letting the employees know they matter to the company. Compensation is “something given as an equivalent for services (Compensation, 2012).” Compensation is given in different types such as base pay, commissions, overtime pay, bonuses, travel, stock options, and benefits (HR Guide, 2012). The benefits of base pay are that the employee is sure to always have a pay check and paying bills will not be an issue. The disadvantage of base pay is making sure it is equivalent to the amount of work the worker is doing. The benefit of commission is that the pay for a commission job is almost always more than just base pay...
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...of a set of interrelated critical questions, the ability to ask and answer critical questions at appropriate times and the desire to actively use the critical questions. This assignment, which focused on the PDQ Memorandum (Mark Headlee, personal communication, October 1, 2011), was an interesting discussion to use for the critical thinking process. Initially, when I thought about critical thinking as a task, my mind immediately focused on a problem and a solution. It most often times in my experience has been a lengthy discussion which resulted in numerous steps in the process. The model used by Browne and Keeley, is a different approach than what I was familiar with, however, it was quite unique when applying it to the PDQ CEO compensation evaluation. The PDQ scenario was very unique, because there was some background information provided which helped to frame the case of the writer. Without knowing the background information and why the task was being assigned, it would have been difficult to ascertain why the memo was written and also why the critical thinking exercise was even...
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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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