Holland Enterprises Compensation and Benefits

Essay Instructions:

Final Paper Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system. Assume the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by your city's largest employer, Holland Enterprises. The firm employs 3,500 employees, but since 2007 has lost 25% of its staff. Exit interviews indicate the primary reason a majority of these employees have resigned is because of a compensation and benefit system that is perceived to be unfair and uncompetitive in the marketplace. Present to the management a revised compensation and benefit strategy. Your proposal should include a discussion of: - How an effective compensation and benefit system contributes to organizational effectiveness. - The principle components of your revised compensation and benefit system for a large-scale organization as well as a recommendation for each component. - A convincing argument to the already skeptical top managers of this organization to increase their compensation and benefit expenses. At a minimum, your compensation and benefit system would include the following components: - Compensation and benefit philosophy - Pay structure architecture (pay grades, pay ranges, and pay width) - Ratio of base pay to incentive (bonus) pay - Emphases on external equity or internal equity - Principle type of benefits to include (example: deferred compensation match, health insurance, vacation and sick leave, etc.) Guidelines for Writing the Final Paper - Paper must be six double-spaced pages in length, exclusive of Title Page, References Page, Appendix, References, Exhibits, etc. - Must address the topic of the paper with critical thought. - Must include an introductory paragraph with a succinct thesis statement. - Must conclude with a restatement of the thesis and a conclusion paragraph. - Must utilize a minimum of four scholarly references.

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Holland enterprises compensation and benefits
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Retaining employees that are most talented and competent is very essential to have along organizational achievement. Therefore, a recommended component attracts and retains the employees. This component includes the implementation and design of a system of compensation and benefit that is effective. For hardworking and productive employees, it is advisable also that they should receive worthwhile payback. Holland enterprises experience this crisis where the number of employees is three thousand five hundred. However, twenty-five percent of the employees have fled due to the system that they claim is not competitive in the market and is unfair to them (Davis & Edge, 2004). As a Human resource consultant hired to analyze, review and revise the system of compensation and benefit in the company, there is, need to come up with a more competitive and fair strategy that will bring the employees satisfaction and enhance their performance.
A philosophy that offers a competitive market is the best to use in a company like Holland Enterprises. The philosophy of compensation and benefits system should be based on the company’s mission. This is because each employee is important in providing and supporting safe and excellent patient care. The company’s objective should be to attract and retain talented and employees by its work environment, market aggressive compensation and benefits, career growth opportunities. All the career positions should be created based on vital purposes of the position described in the description of the work. There should be an efficient budget for salary payment. The budgets that dealing with salary increase should be based on the surveys of external market and Holland Enterprises’ financial resources (Hewitt Associates, 1994)..
The point of defining market is also a critical philosophy, as it is defined for each location based on features like the area that the employees are recruited, which could be regional, local, or national market. Moreover, the size, industry and complexity are factors of defining the market. Market matching is as well very crucial when considering compensation and benefits system. This is because the position should be harmonized to the market. This ought to be done at least once per year, by means of conducting more than eighty salary surveys, exceptional salary survey, information from managers, employees and recruits. The company should consider providing a competitive market pricing in order to ensure that it maintains all the employees in all positions. It is advisable to review on the base pay and the other various types of pay like call pay, shift differentials, charge pay, among others (Gerhart & Rynes, 2003). When still observing the significant variances, which is between the market and the company’s pay, there is need to assess adjustment to sustain market competitiveness.
The implementation of an effective compensation and benefit system boosts the company and it increases the workforce. This is because the employees will work with contentment knowing that there are no more grievances. Therefore, when the workload increases the productivity also shoots up, leading to massive profits for the company. The company also maintains reputation in its surroundings as well as nationally and internationally. This would be caused by the effectiveness of the company, which is contributed by productive and competent employees. In implementing an effective system, Holland enterprises is likely to receive greater business deals from all over the world, as the work produced is uncompetitive (Davis & Edge, 2004). Compensation packages and other attractive benefits are strategic goals for retaining employees of high quality. The commitment of the employees is attracted to this particular aspect of the employment connection. Thus, all organizations that implement an effective system also benefit from it in numerous ways.
A guaranteed pay is one of the most important components of an effective compensation and benefit system. The basic element that is found in this component is the basic salary. The basic salary could be paid on daily, bi-weekly, weekly, monthly as well as hourly. The employees use this type of salary for their daily consumption. Numerous countries dictate the least amount of base salary that defines a minimum wage. The basic salary is mostly determined by the working experience and skills of different individuals. This contributes to difference in the level of income within a pay structure that is job-based. Moreover, there are other elements of base salary, which are payable concerning relations of the employee and the employer. These allowances include; seniority allowances. The Holland Enterprises Company needs to consider raising the amount of its basic salary for the employees in order to meet their daily consumptions satisfactorily.
The other important component is variable pay, which entails a reward that depends on performance, results achieved or discretion. There are various types of changeable pay plans. These include; sales incentives (commission), bonus schemes, overtime pay among others. The most common and usable pay plan is that a sales person gets fifty percent of every dollar that they bring until they reach a level of revenue wher...

Updated on January 26, 2024

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