Compensation and Benefits Strategies Recommendations
8 July 2013
University of Phoenix
Compensation and Benefits Strategies
Searching for a job in today’s market can become a long process and one thing many potential employees look at first is the compensation and benefits packages being offered from the potential most qualified, retaining employees, and maintaining motivated workers (Cascio, 2013). Most organizations are realizing that a well-constructed compensation and benefits programs for employees has a considerable effect on productivity, morale, and the employers cost benefit. These positive effects bring in revenue to add to the business success.
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Before an established pay system is made, Landslide must first “earn sufficient revenues through the sales of its products or services” to pay its labor expenses (Cascio, 2013). Landslide must also encourage and reward performance by providing a fixed salary and commission for the position (Cascio, 2013). The compensation plan is based on both financial and non-financial matters. Financially, a salary is included along with commission. Non-financially, opportunities for personal development, training, will be provided throughout the employee’s term at the organization.
The new compensation plan is designed to be fair, flexible, competitive, and performance based. Key elements of the program include: (1) salary, (2) retirement (pension plan/401k), (3) flexible benefits, and (4) performance compensation. The organization will regularly review the plan to ensure that it remains competitive in which to encourage employee productivity of exceptional performance. To strategically define and establish the new compensation plan, the organization must perform the following: identify compensation as a key motivation method that can be used by management or high level positioned employees to achieve business objectives with the flexibility or consideration of employee needs.
Rewards bridge the gap between organizational objectives and individual expectations and aspirations. To be effective, organizational reward systems should provide four things: (1) a sufficient level of rewards to fulfill basic needs, (2) equity with the external labor market, (3) equity within the organization, and (4) treatment of each member of the organization in terms of his or her individual needs (Cascio, pg. 451).
The Fair Labor Standards Act (FLSA) affects almost every organization in the United States. It is the source of the terms exempt employees (exempt from the overtime provisions of...