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Assignment 2: Compensation Plan Outline
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Assignment 2: Compensation Plan Outline
Apple Inc. is one of the biggest high tech companies in the world. The company is known for its highly innovative products like Macs, iPods, iPhones, and iPads. The company is also famed for providing great employee benefits. A company is good as its labor force motivation. Companies currently show their concern for their employees' welfare and ensure that apart from their financial stability, employee wellbeing is catered for. This essay seeks to take a keener evaluation of Apple's compensation plan and its appropriateness and influence on its employees' motivation. The paper will also compare the Apple Company's benefits program with its competitors and suggest what the company should improve on.
Compensation plans vary and depend on the Company’s goodwill, the current Apple Company’s compensation has had a positive impact on its employees. The compensation comprises three packages, Long equity awards which involve giving employees limited stock entities, performance-based compensation which is based on the employees' innovativeness and work performance and salaries. Where an independent committee consisting of independent directors analyze and determine compensation for the executive officers. Compensation plans are very appropriate for the Apple company.
The performance-based cash has led to innovation in the technological wing of the corporation as the executive officers are paid for remarkable work. This serves to increase the employees focus on their jobs as achieving a goal or doing a job excellently gets them rewarded. Achievement of the goals, impacts positively on the company as they are based on the operating cost and revenue objectives. These strategies have attracted the best entrepreneurial, talented and creative labor to the company. The result has been the company having dynamic employees and successful leadership. To improve the effectiveness of this compensation plan and avoid friction between the company and employees, Apple needs to negotiate broadly with the employees and use the compensation scheme as a binding factor among its many employees.
Internally and Market consistent Compensations Systems.
In Apple Company, the compensation plan involves deciding how to remunerate fairly, equitably and competitively based on the current market rates. To improve the employees' performance the company gives incentive to the employees that perform exceptionally well . All these benefits, the company makes sure are consistent and cost effective with the current compensation policies, market, and existing government policies. To achieve an internal and external market compensation system, the company has ensured that there is a balance of internal equity and external competitiveness.
For the company to achieve internal equity, it consistently applies to reimbursement programs, both horizontally and vertically. In the external market, data from the competitors in the market determine the level of competitiveness. Apple is among the best compensating companies, The Company's executive compensation plan that rewards employees who successfully achieve goals and inspire incredible work. The ability of the workers in Apple Inc to collaborate is inspired by equity in the pay.
The workers receive compensation based on their works worth. Thus the company easily evaluates the quality of work they do. The workers are thus inclined to maintain the standards as the company accesses their work delivery based on their job description and pay. Failure to which the company has the legal right to terminate the contract with the employee (Torre, Pelagatti, &Solari, 2015).
Apple company current pay structure
The turnover, recruitment, and employees' productivity have an influence on the salary and compensation of Apple employees. The company has a pay structure that competes evenly with what other companies in the industry offer. The structure that Apple uses in its compensation is influenced by time in which the compensation is done on an hourly basis, the specialty of the employee whereby career attainment is factored, location and the position held in the Apple store.
Apple specialist pay
In this position, an employee earns an average of $15 per hour. The pay rates range from $10 to $20 dollars depending on the employee's level of qualification, their location or experience. A specialist does not have a flat salary, but if they wish to get standard benefits, they are allowed to apply if they work for Apple for a specified time.
Apple Genius salary and Pay structure
They are among the highest paid employees with a salary that averages at $ 40,000. Their lowest salary end is $ 35,000 which is mostly their starting salary in small or medium cities. Apple Geniuses earns $14-$25 hourly.
Apple store Concierge pay
This position earns an employee per hour, $10 to$14 with an average pay of $11.34 Looking at this structure, it is possible to deduce that Apple Company handsomely pays its workers. An indication that the Company appreciates the services rendered by its employees. In addition to, paying good salaries, the company recognizes its employees in other several ways as illustrated below.
How the Apple Company recognizes Employee contribution.
Giving Apple Store Bonuses
Apple employees are entitled to a yearly bonus that ranges from $200 to $5000. The bonus varies in form, from cash, stock to Apple hardware....