Toyota Compensation and Benefits Essay
Trends in Human Resources Management
Instructor: John Devellier
Toyota Motor Corporation has never faced an issue with their employee compensation and benefits packages. Part of their philosophy has been people are their greatest asset and they treat them as such by paying them a good salary and empowering their employees. How can they attract top talent? Well even the top executives at Toyota do not make a seven figure salary. Wages are determined with a fair market value in mind, but it is the “me” versus “we” attitude that drives Toyota's success.
Describe the formal pay structure …show more content…
Describe any profit sharing, stock ownership programs that are available.
While owning part of the company is not an option for most Toyota employees, profit sharing is with the gains consistently being passed on to workers throughout the years (Miller & Novak, 2008) often making Toyota employees the highest paid workers in the automaker industry.
Describe how benefits are communicated to employees.
Benefits are communicated to employees on their day of hire with the Toyota Handbook which explains company policy wages, benefits, health care packages, retirement and pension plans and the company mission. Also included is the (Toyota, 2003) Toyota mindset of Kaizen, continuous improvement and employee respect.
Describe any problems associated with compensation policies of the organization.
Some of the problems associated with compensation result in the low wages paid to employees versus other automakers. Initially Toyota offers high salaries in an effort to attract the best talent, but there it ends. Even top executives in Toyota rarely receive more than a seven figure salary. After all the training and development Toyota puts into its employees, some can be wooed away from other companies with the promise of more