Compensation and Benefits Strategy for Holland Enterprises Holland Enterprises is the largest employer in the Stoneville, North Carolina. The company currently employs approximately 3500 full-time employees. But since 2010 Holland’s turnover has increased by 25%. As a result, Holland Enterprises has contracted with Gaffney Human Resources Consultants to identify the cause for the turnover and to make a proposal to help prevent further turnover.
The first step that Gaffney Consultants took was to review all employee exit interviews since 2010 to help identify the area of concern. As a result of the research, it was identified that the employees were leaving and going to other employers in the area that were offering a more competitive benefits …show more content…
When the company first opened in the town of Stoneville it did not have many major competitors for a talented workforce. Most residents in the town were driving to 45 minutes to an hour and a half to work for decent pay and benefits. Therefore, Holland felt that they could obtain a talented workforce by offering a compensation strategy that was below the market and the local workforce would be receptive and engaged to eliminate the long commutes. This strategy worked for the company for a number of years; however in 2005 a computer manufacturing company opened a plant in the area and in 2008 another company transferred its headquarters and one of its production facilities to a neighboring town and now employs approximately 1500 employees. Holland has not taken any previous actions to review or modify their compensation philosophy since the new industries have come to the …show more content…
In some cases, white males were being paid $5000-7000 more and doing the same job as females who had more experience. This type of internal inequities could lead to some hefty fines if Holland Enterprises were to be audited by the U.S. Equal Employment Opportunity Commission (EEOC) or charged with discrimination. The Equal Pay Act requires equal pay and prevents compensation discrimination between men and women who are in the same workplace and doing equal jobs (eeoc.gov, n.d.). Looking at internal consistencies is one of the first steps to putting together a successful compensation and benefits strategy for a company. Internal consistencies are how the compensation plan is perceived by the employees in the company (Weathington & Weathington, 2016). The next step is looking at the external consistencies from the employer’s viewpoint at their local competitors in the area and seeing how their compensation and benefits plans compare up (Weathington & Weathington, 2016). As mentioned in the paragraph above, the new industries are offering a more competitive total rewards package than Holland Enterprises is currently
The first step that Gaffney Consultants took was to review all employee exit interviews since 2010 to help identify the area of concern. As a result of the research, it was identified that the employees were leaving and going to other employers in the area that were offering a more competitive benefits …show more content…
When the company first opened in the town of Stoneville it did not have many major competitors for a talented workforce. Most residents in the town were driving to 45 minutes to an hour and a half to work for decent pay and benefits. Therefore, Holland felt that they could obtain a talented workforce by offering a compensation strategy that was below the market and the local workforce would be receptive and engaged to eliminate the long commutes. This strategy worked for the company for a number of years; however in 2005 a computer manufacturing company opened a plant in the area and in 2008 another company transferred its headquarters and one of its production facilities to a neighboring town and now employs approximately 1500 employees. Holland has not taken any previous actions to review or modify their compensation philosophy since the new industries have come to the …show more content…
In some cases, white males were being paid $5000-7000 more and doing the same job as females who had more experience. This type of internal inequities could lead to some hefty fines if Holland Enterprises were to be audited by the U.S. Equal Employment Opportunity Commission (EEOC) or charged with discrimination. The Equal Pay Act requires equal pay and prevents compensation discrimination between men and women who are in the same workplace and doing equal jobs (eeoc.gov, n.d.). Looking at internal consistencies is one of the first steps to putting together a successful compensation and benefits strategy for a company. Internal consistencies are how the compensation plan is perceived by the employees in the company (Weathington & Weathington, 2016). The next step is looking at the external consistencies from the employer’s viewpoint at their local competitors in the area and seeing how their compensation and benefits plans compare up (Weathington & Weathington, 2016). As mentioned in the paragraph above, the new industries are offering a more competitive total rewards package than Holland Enterprises is currently