Compensation Strategies Essay

Executive SummaryThis cut through leave behind figure at 3 different hire systems that our participation female genitals develop and roll out within our confederacy for our employees and forthcoming employees. hire is wholeness of the c have to important and rewarding factors for our employees. Employees rely on their fabricate to pay their rent or mortgage, food for their family, vacations, education for their children, and modernise for their retirement life. How recompense is paid pile determine the forest of employee you acquire and how want you retain them. This report provides information on different hire strategies to attract/recruit good talent, improve employee take and retain value employees. Annual sexual morality increments help companies to poke out being hawkish in the usage force. investigate enters employees want to work for employers that are competitive with salaries. By moving to an yearly be increase system employees result procee d to increase production and suffer business objectives to receive more pay. Employees panorama at merit increases as entitlement and production can remain flat. Our troupe can increase productivity across the board by fix business goals to merit increases.In order to take down the production filled, intercourse from focus leave behind need to take place to assemble expectations of achieving goals and what the potency merit increase the employee can receive by hitting those goals. healthcare eudaemonias can be a deciding factor for many battalion on whether or not they consider working for our company or if they decide to leave our company. Health benefits provided by the employer describes they care more or less the employee and it helps get the employee back to work fast which helps to be more productive. healthcare is not yet a benefit to the employee but also part of their wages. converse and training by management should be conducted yearbookly to go ever ywhere the employees full schoolwide Compensation Package to portray the total pecuniary amount received by the employee from the employer. The last type of compensation we impart consider for the employees as a company is a 401(k) excogitate. 401(k) sees are festering with the number of employers that are providing options for their employees.As the query shows, the address of losing an employee in the long run due to not providing a 401(k) plan can pass water gamyer turn any over rate and training costs. We want to recruit and keep straighten out employees and mingyd on the research shown, providing a 401(k) plan ordain do what we need. My good word is to implement the one-year merit system, health care benefits and a 401(k) plan. For the compensation packages to be a success we allow acquire compensation statements for every employee to review and train all managers with direct reports so they can hawk the great message we form to share. Also, goals and expec tations will be utilise as early as possible during the year to establish a strong foundation for capital punishment. Our compensation plan is intended to attract central talent, increase employee engagement, incent and retain advanced- execute managers who will enhance the profitability of our company and effect value for our shareowners.IntroductionCompensation is an important element of our company. Employees rely on their compensation to pay their rent or mortgage, food for their family, vacations, education for their children, and work for their retirement life. How compensation is paid can determine the quality of employee you grow and how long you retain them. This report provides information on different compensation strategies to attract/recruit good talent, improve employee production and retain value employees. Also, with gross revenue volume goals to increase, technology and innovation changing so quickly, and the quality of service customers are expecting, emplo yers have to come up with ways to be better than their competition. The way to be better than your competition is through the population who work for the company.And one the bestways to attract those employees are to have a better compensation packages for your employees. The goal for this research will show you the optimistic impacts to the company by offering Annual Merit Increases, health care Benefits, and 401k plans to the employees. These compensation benefits are important to high quality employees our companys trying recruit, retaining high producing employees, as tumefy as, increasing motivation and production with all former(a)(a) employees. By implementing these actions our company will be able-bodied to show our employees our commitment to be the best company to work for and to show how valuable our employees are to the company.Research FindingsMerit Pay Increase harmonise to Towers Perrins Global workforce study, competitive base pay is the most important factor th at attracts UK workers to an employer, with almost six-out-ten (59%) respondents stating that this would influence their decision (Competitive base pay, 2007, p.16). Not single is it important to attract workers but retaining high performing employees and charge them motivated to increase and maintain productivity to compete in the marketplace is vital. One way to retain and motivate employees is through annual merit increases. If a merit pay system results, it motivates employees to work exhaustinger and hit more (Mack, 2014). In order for the merit pay system to succeed it will need to be tied in with the business dodge of the organization and not viewed as an entitlement. Merit increases can motivate employees to bring home the bacon whatever goal the company sets. For example, by finishing projects timely with high quality or rolling out new operational procedures for the company. Employees ofttimes fail to see a link between merit pay and the accomplishment of business go als because no link is being made (Heneman, 2002, p.382).In a Supervisory utilization is important direct reports empathize how their idiosyncratic goals align to organizational priorities and how merit increases are earned ground on exceeding their given goals. Planning and Goal Setting is the foundation for performance management and execution of our strategies. It focuses on ensuring employees have a clear consciousness of annual organizationalpriorities, and defining individual employee goals aligned to their job role and those priorities. Finally, it is important that in force(p) chat exists between employees and management and that managers have the unavoidable tools for administering rewards (Leritz Ph.D., 2012, p.1).Analysis Research shows employees want to work for employers that are competitive with salaries. By moving to an annual merit increase system employees will continue to increase production and meet business objectives to receive more compensation. Employe es look at merit increases as entitlement and production can remain flat. Our company can increase productivity across the board by tying business goals to merit increases. In order to get the production needed, communication from management will need to take place to set expectations of achieving goals and what the potentiality merit increase the employee can receive by hitting those goals.Healthcare BenefitsAccording to Competitive base pay most important for enlisting (2007), almost two thirds (59%) of faculty would consider leaving their job if their employer failed to book of facts health and wellbeing in the workplace. Business in the Communitys Business action on health campaign shows that 83% of staff considers the way that an employer looks after the health and wellbeing of staff is important when choosing a job (p.16). Effective communication from employers about the compensation plans has a study influence on the turnover rate of the tiptop performing employees. Bec ause one companies benefits are better than the other doesnt mean employees will stay. establish on the surveys conducted, companies with better communication strategies and lesser benefits had only 12% turnover compared to 17% turnover with companies that offered better benefits. Companies with excellent benefits and effective communications had only an 8% turnover of top-performing employees. Also, when employees were surveyed on how well-to-do they were with their benefits, only 22% were satisfied with the better benefits from employers with poor communications. On the other hand, 76% of employees with lesser benefits and effective communication from the employers were satisfied with their benefits (Better benefitscommunications, 2005, p.9).Companies must show the employees that healthcare benefits are a part of total compensation because companies that dont efficaciously communicate the value have higher(prenominal) turnover rates for top performers. According to Kathryn Yates , global director of communication consulting at Watson Wyatt, Employers can go huge sums of cash on benefits, but if their employees arent aware of the cost or dont appreciate the value of the benefits, they arent issue to see a return on their investment. (Better benefits communications, 2005, p.9).Analysis Research shows the importance of health benefits to employees and what it takes to retain those employees. Health benefits provided by the employer shows they care about the employee as well as it helps get the employee back to work quicker which helps to be more productive. Healthcare is not only a benefit to the employee but also part of their compensation. Communication and training by management should be conducted annually to go over the employees full plenary Compensation Package to show the total monetary amount received by the employee from the employer. This communication and training on healthcare benefits are vital to keeping our top performers.401(k) PlanThe inc rease of matching contribution for 401(k) plans through employers has come up from 68 percent to 73 percent over the last mate of years (Plenda, 2013, p.31). In a recent survey, if another employer offered a akin job with a 401(k) plan, 40 percent of employees said they would pursue other opportunities with the new employer. It was also determined when a 401(k) plan is presented most employees work harder and stay on the job longer (Lamont, 2014, p.10). People who save money are good workers because they place greater value on in store(predicate) outcomes. These types of employees work more and are more conscientious of how they treat employer assets because they clear their reputations will be hurt by careless actions they take. Not only do employees stay on the job longer but companies can use 401(k) plans to attract workers that are more conscientious and productive on the job (Munnell & Sunden, 2004 pp. 3-20).Research by Bank of America MerrillLynch shows higher turnover ra tes, increase in training costs, and lower productivity and sales as a potential consequence for not offering a competitive benefits package to its employees. Employers should look at benefits as one of the most important investments they can make. These investments will attract top talent and show they are invested in their employees professional growth, as well as, their pecuniary well-being to give them a competitive advantage over other employers (Brooks, 2012).Analysis 401(k) plans are growing with the number of employers that are providing options for their employees. As the research shows, companys not providing a 401(k) plan can lose employees to competitors, lose productivity and sales. We want to recruit and keep top employees and based on the research shown, providing a 401(k) plan will do what we need to help increase our advantage of attracting and keeping top talent over our competitors.RecommendationsOur companys compensation plan is intended to attract find out ta lent, increase employee engagement, incent and retain high-performing employees who will enhance the profitability of our company and create value for our shareowners. Below are the recommendations to begin implementing merit increases, healthcare plans, and 401(k) plans to our employees. These actions will align specific goals to our organizations priorities and enables us to execute its strategies to deliver exceptional compensation packages to our employees.Recommendation It is recommended to establish goals and expectations every year to consider employees have a clear understanding of annual organizational priorities and their delineate individual employee goals are aligned to their job role and those priorities. Managers will meet with each of their respective employees to communicate their goals and expectations and have the employees sign and approve understanding. On February 15th, annually, managers will meet with each employee to discuss results and give feedback on ach ievements, strengths, areas of opportunities, and merit increase theemployee will be receiving on their March 1st paycheck. By implementing a merit increase we will increase employee engagement, incent and retain high-performing employees who will enhance the profitability of our company and create value for our shareowners.Recommendation My recommendation is to set up health care benefits with United Health handle and contribute $500 per month towards employees costs. Additionally, implement a Comprehensive Compensation Package to be presented and reviewed by the manager to the employees at their annual merit increase to show them the rich compensation they have with the company. The Comprehensive Compensation package will give a personalized overview of all components of the employees compensation and cash value of the benefits available. By communicating with the employees, we will see an increase in retention and satisfaction that will pass our company costs and increase profi tability.Recommendation My final recommendation is to set up Fidelity to manage the employees 401(k) accounts. In addition, the company will match 3% of the employees contributions and will schedule yearly financial seminars with Fidelity for financial guidance and retirement advice. During yearly reviews, managers will be present the Comprehensive Compensation Package to give an overview of all components of the employees compensation and cash value of the company matching. By providing a 401(k) plan and financial guidance we will attract top recruits, as well as, retain top employees.ConclusionMy goal for this research is to show you the positive impacts to the company by offering annual merit increases, healthcare benefits, and 401k plans to the employees. These compensation benefits are important to recruit high quality employees, retain high producing employees, and increasing motivation and production with all other employees. By creating annual merit increases, employees are more productive and try to reach the highest increase they can get to add to their salary. Adding the companys business objectives to the merit increases for the employees to reach will addincreased productivity to the company. Adding healthcare insurance coverage for employees and communicating with them the value added to their compensation is important to retaining employees. Employees with healthcare also go to the doctor more often and come back to work quicker which means less down time and higher production.Lastly, introducing a 401(k) plan to the employees creates long lasting and loyal employees that are vested in the companys success. The findings show the importance of pay to employees and the importance of attracting employees to a company. Also, employees work harder which will make the company more profitable. Planning, goal setting, communication. The importance of the findings for healthcare is employees are will to leave their company if employers dont provide heal thcare benefits. Shows communication is very important in making genuine employees understand the benefits to make sure they dont leave. Shows increase in businesses providing 401k plans and attracting hard workers.shows how important benefits are in keeping and attracting employees. Work harder and stay on the job longer How important it is to show benefits are part of compensation to show the value and keep top performers.Communication is going to be the fundamental key to getting the buy in and positive reactions to implementing these compensation benefits. The best merit increase plan, healthcare plan, and 401(k) plan can acquire positive employee reactions or a negative employee reaction. The actual effect depends on whether these plans are understood and accepted and whether employees perceptions of the facts are positive. Finally, it is important to make sure we keep pace and understand what other organizations benefits are to their employees and we stay competitive to them , we also remember the employees must understand the benefits and buy in to them to be successful.ReferencesBetter benefits communications can help to improve retention. (2005, April). Managing Benefits Plans, 5(4), 9. Retrieved from http//eds.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=5&sid=09c97eff-2de5-4526-9558-66dcdfc85554%40sessionmgr114&hid= cx Brooks, C. (2012). Monetary benefits play increasing role in luring workers. BusinessNewsDaily, Retrieved from