Career Development IV Compensation
In today’s challenging and unpredictable economic market, companies are trying to redefine sales strategies, incentives, and pay compensation. Labor commands a high level of overhead for a company; therefore, pay policies, benefits, and compensations are critically important to be evaluated closely because it affects the livelihood and lifestyle of all workers. Ideally, an effective and sound sale compensation plan enables the company directly tie sales activities toward the expected outcome, and these outcomes should be rewarded with incentives and compensation base on the achievement level. Employers that want to succeed in this ...view middle of the document...
• Tuition reimbursement for continuing education.
• Company’s benefits: Medical insurance, 401K, profit sharing, two weeks paid time off annually, disability and life insurance, and pension plan.
As human resources manager, I believe that this merit-pay system will work in the respect those the system affects will support the pay system, the sales jobs are solid and team incentives are appropriate when the jobs are organized . For this plan to be successful the plan will properly designed to increase motivation thereby improving performance and using recognition for motivating the sales team. A growing number of employers are incorporating performance-based compensation plans to boost productivity and maximize their return on investment in compensation. These types of plans are designed to reward employees who produce. Some experts argue that traditional salary increases aren’t as connected to performance as they should be.
Three Components of a Total Reward Package
Organizational compensation packages compose usually of what employee’s desires, needs, and values that will match an employer’s capability to rewards such needs. The three components of a total rewards package that would motivate employees to reach peak performance are Internal equity, benefits, work-life balance . Companies can either balance the components or highlight one over the others, but they must offer a total reward package that attracts the type of talent they need and want. For example, some companies may be weak in positive workplace but have very strong total pay to make up for the difficult work environment. Other companies may have weaker total pay but increase people, provide a positive workplace, and have a compelling future that people want to support and be a part of. Internal equity refers to the pay rate an individual employee received in performing a certain job and perceived the return to be fair. Cascio, W. (2005).
Internal equity is important because this reward is the way of life. This monetary reward will sustain existence in the society.
Benefits are the second of the three components and is necessary as part of total rewards to obtain key talent and retain key talent. Many employers use a plan allowing employees to choose benefits to control cost, and allow a choice of benefits desired by the employee . The company will take care of the educational needs of the children, and healthcare for the entire family.
National survey data indicates that...