In every organization Human Resource department is accountable for the hiring, compensating and retaining the employees by offering those benefits and compensations. The purpose of Human Resource Management is to evaluate, encourage and manage the performance of employees in the organization. For any organization employees are the most valuable assets which are involved in everyday operations of an organization (Hendry, 1995).
Role and Importance of Compensation and Benefits Package
In this scenario the new head of Human Resource department has to develop the benefits and compensation program and manage the team. The compensation and benefits package attracts, encourages, and retains the employees with right skills and abilities (Bartram, 2013). This is important because the competition and rivalries nowadays comprises of best quality of workforce for which HRM department is accountable. Therefore, the HRM department designs its hiring process and compensation program to employ, motivate, retain and evaluate the performance of employees for better performance to achieve the organizational goals.
Project Charter
A project charter involves the strategy and approach to achieve the objective of the organization. It begins with the idea, vision or an objective which is associated with the objective of the organization. It is a critical element of the project which defines what needs to be achieved and how it is to be initiated. A project charter also defines the stakeholders of the organizations which are the members or the other organizations which are actively involved in the project.
Purpose
The purpose of project charter here is to design a program that expands and coordinate the benefits and compensation activities which support the Organization's mission, vision and goal. The compensation and benefit program of the organization aims to increase the performance and retention of the employees by creating the appropriate strategies (Bryant, 2013). With the expansion of the organization there is demand in the workforce and HRM is responsible to create the incentives for the satisfaction of employees to attract the new and retain the old ones. Therefore the benefits keep the employees stick to the organization or join the organization (Huselid, 1995).
Goal
The goal of this project charter is to create a sustainable, visible and consistently applicable benefit and compensation program where employees of the organization are engaged in;
Comprehensive and supportive work environment.
Encouraging high performance.
Emphasizing on the contribution and participation by employees that support in achieving the organizational values and goals.
The Compensation and Benefit program of the organization is defined in the following diagram which encapsulates the employee satisfaction.
Rewards
In the above program there are number of rewards and benefits apart from the basic salary. These rewards include:
Bonus: It is in the form of financial incentive and an employee is eligible for the bonus if he exceeds his performance objective.
Salary increases: The salary of an employee is increased if he continuously achieves its objective.
Promotion: Promotion is decided after the performance evaluation of an employee on the semi-annual basis. The employee prevails if he is consistent performer ...
