COMPENSATION AND BENEFIT

Consultant for an esteemed company Holland Enterprises -Compensation and Benefit-

Table of contents

Introduction1

Discuss how an effective compensation and benefit system contributes to organizational effectiveness.2

Discuss the principal components of a typical compensation and benefit system for a large scale organization3

Guaranteed pay3

Variable pay3

Benefits4

Equity-based compensation4

Pay structure architecture (Influencers of the compensation and benefit plan)4

Bonus plans as part of the compensation plan of any large organization5

Adjust labor cost to financial results5

Drive employee performance5

Employee retention5

Ratio of base pay to incentive bonus pay6

Strategy to convince the top managers of the organization to increase their compensation and benefit expenses6

Conclusion7

References8

Consultant for an esteemed company Holland Enterprises

Introduction

Holland Enterprises is a manufacturing company, making fire trucks and emergency vehicles for firefighters everywhere, meeting their stringent demands. The company s over 35 years of experience in firefighting, and combines it with the cutting edge technology and equipment to make the best equipments. The greatest assets of the company are its owners, Kevin Holland and Owners Raymond, having more than 15 years of firefighting experience.

This extensive experience allows them, and the company to be able to understand the needs of the firefighters, and to produce high quality, customized vehicles to meet unforeseen demands, in a remarkable manner. Procurement of the chassis is from companies like GM, Ford and Freightliner, who have international recognition. The design of the vehicles is from the frame up, using the advance engineering skills and practical experience of the teams of the company.

Holland Enterprises was known as one of the city's largest employer with the aim to identify the best employees, hire and retain them. The company lost 25% of its staff due to the economic conditions, and realizing this, is planning to step up its hiring and compensation practices. Considering a number of exit interviews, the identification of the reasons for the high turnover is the poor compensation practices of the company.

The company intends to restructure its compensations and benefits plans, to improve retention and help retain all employees. A major player in today's job market is the compensation and benefit plans, and competition has increased for employees, making them seek new jobs, feeling that the compensation and benefit system of the company is unjust. The company is not compensating its workers the way the market demands.

Discuss how an effective compensation and benefit system contributes to organizational effectiveness.

An effective and practical compensation and benefit plan is a vital component of every company. Every company must seek to manage the workforce. Failure for the entire organization results because of a poorly managed and poorly compensated workforce. In the attracting and retaining of high quality employees, compensation and benefits are the most critical factors. The reward an employee receives for their contribution to the company is known as compensation and is vitally important for impressive performance.

Generous monetary and non-monetary compensation are provided by prominent employers, in addition to benefits to their workforce. Keeping the strategic goals of the company in mind, the compensation system of an organization is designed to provide the greatest impact, analyzing each ...