Quality Compensation and Benefits Package

Posted: March 27th, 2020

Quality Compensation and Benefits Package

Student’s Name

Institutional Affiliation

Quality Compensation and Benefits Package

Outline

INTRODUCTION

1. The significance of a quality compensation and benefits package in organizations.
2. Merits of quality compensations and benefits packages to the employees.
3. Benefits of quality compensation and benefits packages to the organization.
4. Government regulations and policies on compensation and benefits to employees
5. Thesis statement.

(Transition: Compensation and benefits packages are a primary determinant of employee motivation)

PROBLEM STATEMENT

1. Discuss recent surge in employee complaints on the compensation and benefits package in the company.
2.  Discussions held with employee union officials.
3.  Point out the recent rise in employee turnover.
4. Look into the compensation and benefits packages offered by direct competitors.

(Transition: Literature review indicates compensation and employee packages are imperative matters in human resource management)

REVIEW OF CURRENT PRACTICES

1. Literature review of compensation and benefits packages.
2. Review the compensation and benefits policies of other Fortune 500 companies

(Transition: Improvement of compensation and benefits packages can help to retain employees)

STRATEGIC PLAN FOR CHANGE OR CREATION OF THE ANTICIPATED CHANGE

• The strategy was successful for Apple Company.
• The strategy reduced employee turnover in the organization.
• Employee motivation levels were at an all-time high.
• The organization stopped losing its staff to me competitors.

(Transition: The strategy can be implemented in several ways in the company)

STRATEGIC APPROACH FOR IMPLEMENTATION FOR CHANGE

• Review the possibility of other methods of motivating employees.
• Showing more concern to employee relations.
• Review the working conditions quarterly.
• Adopt an open door policy.
• Encourage employees to feel like part of the successes of the company.
• Align the compensation and benefits packages with other organizations in the same level of production and productivity.
• Implement annual reviews of compensation and benefits packages.
• Introduce an annual bonus benefit package determined by performance.
• Introduce Key Performances Indexing (K.P.I) to evaluate performance. 

(Transition: The current compensation and benefits package should be aligned with that of competing companies)

FINAL RECOMMENDATIONS AND POSSIBLE OUTCOMES

• Implementation of 30 percent salary increment for staff members.
• Regular engagement with employees on benefits and packages.
• Offer stock options for employees in the next financial year. 

(Transition: Successful implementation can change the fortunes of the company)

CONCLUSION

• Summary of why the company needs to improve payment and benefit packages to employees.
• Project the possible improvement in production with a better remuneration to employees.
• Discuss the importance of having highly motivated staff.
• The risk of losing quality staff members to direct competitors.

Annotated Bibliography

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.

            In the journal article, the writers analyze employee compensation and the impact that it has on the staff. Human resource managers and researchers have not looked into the area of employee compensation with certainty. However, recent research interventions indicate that compensation is imperative to employee motivation and productivity. Concentration in work is enhanced when employees know that their financial status is good. Additionally, relations in the place of work are augmented, and that improves the level of teamwork. Therefore, the paper is an encouragement to human resource managers to invest more in research on employee compensation. In most cases, employee compensation is guided by market factors.

Kakar, P., Raziq, A., & Khan, F. (2015). Impact of Human Resource Management Practices on Employee Retention: A Case of Banking Sector in Quetta Baluchistan. Journal of Management Information, 5(1), 97-119

            In the papers, the authors look at employee compensation as an integral factor in employee retention. Research conducted indicated that most employees switch to other employers for better compensation packages. However, the writers are keen to point out that other matters such as teamwork and employee growth are essential. Generally, most people consider pay as the appreciation to the work and service offered. Therefore, proper payment is an indication that they are valued in the organization. On the other hand, poor pay is an indicator that the organization can function without their services. The authors encourage employers to enhance the compensation of their employees to respected levels.

Chang, X., Fu, K., Low, A., & Zhang, W. (2015). Non-executive employee stock options and corporate innovation. Journal of Financial Economics, 115(1), 168-188.

            The article looks into other ways of motivating employees apart from compensation and benefits packages. The writers are specific on availing stock options for employees. In that regard, employees become part owners of the company. Productivity increases because employees gain the feeling that they are working for themselves. Additionally, increased profitability by the company results in better dividends for them at the end of a financial year. Therefore, the burden of productivity is not just placed on the top-level managers. Employees who own stocks in the companies they work for do not switch employers often. For that reason, implementation is also helpful to employee retention.

Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science, 5(2), 302-309

            In the paper, the writers look into the impact of compensation on employees. The paper researches companies at the same production scale but with different compensation and benefits packages to employees. Employees from the companies are interviewed on their level of job satisfaction. Additionally, the productivity of individual employees is analyzed using standardized parameters. Results collected indicate that the better-compensated employees were more motivated. In that regard, motivation was directly proportional to productivity. The more the level of motivation the more the productivity levels. In conclusion, the writers indicated that employers should strive to give employees the pay that they deserve.

Larkin, I., & Pierce, L. (2015). Compensation and employee misconduct: The inseparability of productive and counterproductive behavior in firms. In D. Palmer, R. Greenwood, & K. Smith-Crowe (Eds.), Organizational wrongdoing: Key perspectives and new directions (pp. 270-304). Cambridge: Cambridge University Press.

            The paper looks into three factors concerning employees. The first factor is compensation. The second factor is performance, and the third factor is misconduct in the placed of work. Hypothesis by the writers indicates a correlation between the three elements. Poorly compensated employees do not perform well, and they are often accused of misconduct. The writers conducted research involving Human resource managers. The managers were interviewed on the remuneration levels of employees, performance, and cases of misconduct reported. It was evident that poorly compensated employees do not perform well and they are prone to acts of wrongdoings. The explanation given is that they lack sufficient motivation in the place of work.

Samnani, A. K., & Singh, P. (2014). Performance-enhancing compensation practices and employee productivity: The role of workplace bullying. Human Resource Management Review, 24(1), 5-16.

            In the paper, the writers look into the impact of compensation on employees. The paper researches companies at the same production scale but with different payment and benefits packages to employees. Employees from the companies are interviewed on their level of job satisfaction. Additionally, the productivity of individual employees is analyzed using standardized parameters. Results collected indicate that the better-compensated employees were more motivated. In that regard, motivation was directly proportional to productivity. The more the level of motivation the more the productivity levels. In conclusion, the writers indicated that employers should strive to give employees the pay that they deserve.

Massingham, P. R., & Tam, L. (2015). The relationship between human capital, value creation, and employee reward. Journal of Intellectual Capital, 16(2), 390-418.

            The paper looks into the relationship between value creation, employee reward, and human capital. Value creation concerns the ability of employees to meet and surpass the targets set by the organization. The company needs to realize value from the employee hired. The research indicates that employees compensated poorly do not meet the value set by the employees. However, employees paid higher salaries can attain value set by their companies despite the fact that their salaries are higher. Therefore, the companies should look into ways of motivating employees before attaching high-value expectations.

John, K., Knyazeva, A., & Knyazeva, D. (2015). Employee rights and acquisitions. Journal of Financial Economics, 118(1), 49-69.

            In the paper, the writers look into the rights of the employees. Compensation and benefit packages are highlighted as one of the rights. Governments have legislation and policies that regulate the compensations of employees. The paper looks on the level of implementation on the laws and policies. Most companies implement the laws only to the level required by law. However, other companies have their own standards on rewarding employees that are better than the law. Employees in the latter organizations are more motivated and they record better performances.

References

Chang, X., Fu, K., Low, A., & Zhang, W. (2015). Non-executive employee stock options and corporate innovation. Journal of Financial Economics, 115(1), 168-188.

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.

Hameed, A., Ramzan, M., & Zubair, H. M. K. (2014). Impact of compensation on employee performance (empirical evidence from banking sector of Pakistan). International Journal of Business and Social Science, 5(2), 302-309

John, K., Knyazeva, A., & Knyazeva, D. (2015). Employee rights and acquisitions. Journal of Financial Economics, 118(1), 49-69.

Kakar, P., Raziq, A., & Khan, F. (2015). Impact of Human Resource Management Practices on Employee Retention: A Case of Banking Sector in Quetta Baluchistan. Journal of Management Info, 5(1), 97-119

Larkin, I., & Pierce, L. (2015). Compensation and employee misconduct: The inseparability of productive and counterproductive behavior in firms. In D. Palmer, R. Greenwood, & K. Smith-Crowe (Eds.), Organizational wrongdoing: Key perspectives and new directions (pp. 270-304). Cambridge: Cambridge University Press.

Massingham, P. R., & Tam, L. (2015). The relationship between human capital, value creation, and employee reward. Journal of Intellectual Capital, 16(2), 390-418.

Samnani, A. K., & Singh, P. (2014). Performance-enhancing compensation practices and employee productivity: The role of workplace bullying. Human Resource Management Review, 24(1), 5-16.