The Importance Of Compensation And Benefits

Decent Essays
Attracting and retaining great talent can be helped by offering good compensation and benefit plans. “Not surprisingly, salary and pay remain the most important form of compensation among employees, as reported by about 88 percent of HR professionals in the HCM survey (Figure 1). Health care benefits (57 percent) were the second most important, followed by training and development opportunities (33 percent) and work culture (31 percent)” (Sheng, August 6, 2014). The HR department is responsible for creating compensation and benefits plans that align with the goals of the company. The proper way to obtain information to create these plans is to perform a job analysis. Each job within the company should be analyzed and given a thorough description. …show more content…
This may include health insurance, retirement, vacation time and other paid time off. “That said, if your company becomes known for offering good benefits, you will generally find it easier to recruit talented employees and you may even see some positive side effects with respect to marketing and sales” (Inc.Staff, April 26, 2010). Health insurance is the most costly benefit provided by companies, but it can be a great recruiting tool. The cost of premiums has recently sky rocketed, causing many organizations to make cuts. There are very few companies that are providing health insurance to their employees at no extra cost to be paid by the employee. Many organizations are charging higher premiums for dependents. Ancillary benefits, such as, dental, vision, and life are being offered to the employee for full price. It is up to the HR department to come up with a strategic way to save the company money, but provide a decent health insurance plan as a recruiting …show more content…
This is the time that the company allows the employee to take off and still receive compensation. The issue with this benefit is that there are many people who do not take this time for fear of missing something important while they are gone. There are some individuals that fear they may lose their job if they take time off. “Workaholic employees may seem attractive in theory; in practice, they will likely suffer from burnout and cause stress among other workers” (Inc. Staff, April 26, 2010). The GPS Company has a policy that if you must take time off. This policy is enforced by the HR department. There are certain times of the year when they are busier than others, so during the slower times of the year certain departments in the company are encouraged to take time off. The premise behind this is if they take the time away during the slower periods, they will be renewed to be at their best during the busy period. This has been a successful policy for them. This company offers flextime to their employees. They have some employees that are working in the office a few days of the week, and work from home on the other days. The repair department allows their employees to set their own schedule according to the demand of work that they have. The marketing department allows job-sharing, which is where two employees are sharing the same job. They have found that this is a

Related Documents

  • Improved Essays

    Recruit Selection Process

    • 646 Words
    • 3 Pages

    Running head: STRATEGIES USED TO RECRUIT STAFF Strategic Process for Recruiting Employees University of Phoenix Strategic Process for Recruiting Employee planning, recruiting, selecting, staffing and hiring is often a very difficult, timely and expensive task for any organization wishing to survive in today’s economy. In order for any organization to be successful they must attract and hire the most talented employees that fit the culture of the organization. It is the employees that make up an organization, so to be successful they must have a strict strategic process in place to recruit the right people for their organization. There are many strategies that organizations use to recruit employees which include, the pipeline…

    • 646 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    When scheduling interferes with big sales or events, managers are then able to make edits that are beneficial to them. Job Design Theory is about employees actually enjoying their job and being content with their job. Being a Macy’s Inc. employee for a year, this issue with the scheduling system has affected the way that I view my job and the day to day tasks that I have to perform. From my education and work experience in management, it is known that managers are generally supposed to help employees balance work and personal life. A happier and satisfied employee reflects in the employees’ customer service and performance.…

    • 1126 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    EGT1 Task 3

    • 314 Words
    • 2 Pages

    Joan Jackson is the president of Superior Software Services, and she is deciding after careful consideration to change the time off policies for the company. With this change Mrs. Jackson is hoping to reduce the unscheduled time off that has recently affected areas of the company. With more and more employees calling off, Mrs. Jackson is concerned that these unscheduled absences will cause delay in meeting customer deadlines (Martocchio, 2013). By implementing a new policy that will replace sick/vacation time with a paid time off (PTO) bank, Mrs. Jackson is hoping that the PTO’s would help eliminate employees calling off work due to reasons besides being ill or vacation times. With the PTO plan, employees can schedule ahead of time their vacation,…

    • 314 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Wage and salary levels determined for each position at Planned Parenthood relies on various factors. The position of the employee and their expertise in a specific field (whether it is administrative, clinical, or educational for example) are all varying determinants of wages. Our organization has continuously provided higher wages for our employees and entry level candidates compared to other organizations through external wage surveys. * These surveys are modified to narrow down various dimensions including job position evaluations, external market analysis, location(s), and years of experience in a respective field. * Furthermore, job positions tailored to a specific role are reviewed and wages can be set based on employee performance, knowledge…

    • 787 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Demur Role Model

    • 1164 Words
    • 5 Pages

    To receive time off Demur had to present information to…

    • 1164 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Compensation can be a strategic tool for organizations to attract, retain, and motivate their employees. More than a wages and salary earned by employee, compensation also includes benefits provided. An official statement specifying a company’s standpoint on compensation is known as compensation philosophy. According to the article, “It essentially explains the “why” behind employee pay and creates a framework for consistency.…

    • 868 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Introduction The Walt Disney Company characterizes a truly massive business composed of four strategic professional units (SBUs) which, with the consideration of the consolidated revenue, represented roughly a whopping 35.5 billion dollars in 2007. The four SBUs are Disney Consumer Products, Studio Entertainment, Parks and Resorts, and Media Networks Broadcasting, and these can be further subdivided into 28 categories and are composed of a surplus of brands. The only two fundamental commonalities that can be deduced upon inspection of the entirety of the Walt Disney Company’s holdings are entertainment and information. Every business activity the organization is engaged in is related in some manner to providing its consumer base entertainment…

    • 1099 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Non Mandated Benefits

    • 1389 Words
    • 6 Pages

    What mandated benefits must the company provide to all employees? Explain each benefit. Assume that the president has decided to provide some non-mandated benefits. Which benefits will you recommend that the company provide to employees and why?…

    • 1389 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    Career Evaluation Paper

    • 452 Words
    • 2 Pages

    yearly or according to the level of performance, by the company. Some companies also have profit sharing policies. For example, in 2010, Google Inc. gave all its employees a one thousand dollar holiday bonus and paid the taxes for the money meaning the employees kept the entire sum (Blodget, 2010). Such incentives might prove critical when picking careers or companies. In the matrix, salary was assigned an overall weighted score of 25 out of 100.…

    • 452 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Job seekers may be a little weary when it comes to taking a position with a small business for fear of a lack of benefits. This is not a reason to worry, though, for small business owners have the means of seeking out and securing benefits for their employees. Among the various elements of a comprehensive benefits package, it is usually the health benefits offered to members of a staff that keep them interested in working for a company. Appropriate health insurance is essential for employee satisfaction and retention.…

    • 581 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    Activity 1 Introduction In this report I will discuss factors that affect an organization’s approach to both attracting talent and recruitment and selection. My report will also include some recruitment methods and its advantages. Benefits to the Organization of attracting and retaining a diverse workforce. Currently, an increasing number of organizations are attempting to enhance inclusiveness of underrepresented individuals through proactive efforts to manage their diversity.…

    • 841 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    Peter Novelli Case Study

    • 836 Words
    • 4 Pages

    Prior to 2004, talent management and performance management at Peter Novelli was based on competency models that determined high potential talent and succession planning. However, the company decided to change its talent management strategy in order to be more aligned with its business strategy. According to Goldsmith, Carter, and Institute (2009) the company’s new strategic vision “focused on a new approach to client account planning, a more client-centric structure, and a greater emphasis on operating interdependence between the globally dispersed offices in the service of multinational clients” (para. 2).…

    • 836 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Today humans are considered as one of every company’s most important assets, so they efforts need to be efficiently and effectively rewarded. Compensation is a main factor for organization to attract, retain and motivate its workforce. Individuals look for jobs that not only suit their abilities and talents, but compensate them accordingly in terms of salaries and other benefits. "The term employee benefits refer to compensation other than an hourly wage or salary. Examples of specific employee benefits include paid vacation, medical insurance coverage, and tuition reimbursement, but the number of employee benefits can be staggering” (Martocchio, 2014).…

    • 1182 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Amazon Talent Management

    • 4205 Words
    • 17 Pages

    Talent Management is a set of integrated organisational human resource process designed to attract, develop, motivate and retain productive and engaged employees. The purpose of talent management is to create a high performance and sustainable work environment in the organisation that is able to meet its strategic and operational goals and objectives in a long run. A strategic and holistic approach in talent management is important because it would assist the organisation in finding and attracting the best talent in the market. This can also constitute the attractiveness that the organisation can have that leads to a differentiation and competitive advantage as compared to their competitors. This report will cover the different issues faced…

    • 4205 Words
    • 17 Pages
    Great Essays
  • Improved Essays

    SYNOPSIS OF HUMAN RESOURCE MANAGEMENT PRACTICES IN RELIANCE ORGANIZED RETAIL STORES - WITH REFERENCE TO BANGALORE CITY INTRODUCTION Human Resource Management (HRM) is the organizational function that deals with issues relating to people such as compensation, hiring, performance management, safety, benefits, employees’ motivation, communication, administration and training. HRM is a strategic and comprehensive approach of managing people at workplace. Its role in the company’s success is growing rapidly with the growth in many sectors in the present globalized era. The HRM practices are crucial in designing the structure for manpower staffing, performance appraisal, compensation and training and development. Innovative HRM practices can play…

    • 1046 Words
    • 5 Pages
    Improved Essays