Description
help me asap
Unformatted Attachment Preview
Purchase answer to see full attachment

Explanation & Answer

Looking forward to working with you again.
HUMAN RESOURCE MANAGENT
HOLLAND COMPENSATION AND BENEFIT STATEGY
In this context, Holland Enterprise has been losing its employees at an attrition rate of
25% since 2010.
This is where the interview has clearly indicated that the main core reason for most
employees to exit the organization is based on compensation and benefit system which is
perceived to be unfair and uncompetitive in the marketplace.
There is thus need for this paper to develop a revised compensation and benefit
strategy which will be represented to the Holland Enterprises to ensure that there is higher
retainment of employees which will act as the main competitive operations.
The thesis statement of the paper therefore is that that motivation and organizational
effectiveness cannot be achieved without using effective compensation and benefit schemes
which always generates coordination which has ultimate results of effectiveness.
In the sense of the compensation and benefit strategies that should be considered by
the Holland Enterprises it is clear through effectiveness of the company that operations will
be achieved especially when a more standard and comprehensive compensation scheme will
be used,
This then being the case the major benefits that the company will gain from an
effective compensation and benefit system include the capability of retaining employees in
the organizational operations which has been a major impediment in the operations of the
company.
The company will be able to retain a large number of its employees since each and
every employee will fell to be part and parcel of the organization.
It is also clear that through using a clear benefit and compensation plan Holland
operations will be able to execute its operations plans and strategies thus achieving the main
goals and purpose of its existence which is a vital survival element in an organization.
This then being the case it is clear that Holland operations will be able to survive in
the competitive market as compared with the current operations which is based on hurdles.
It is also clear that Holland operations in the context of adapting effective
compensation schemes the company will be able to achieve the required market quantity and
quality which is vital to generate its market core competencies in comparison with its
competitors.
How an effective compensation and benefit system contributes to organizational
effectiveness: The compensation strategy works in various ways such as:
Increases employee motivation: Anyone working with an organization is doing so just
because of the compensation he is getting there. To complete one’s liability one needs the
money and to earn money people work. Those individuals who lacks monetary benefit prefer
to join the NGO’s. So compensation is the key thing which keeps the employees motivated as
it is the biggest desire that a person is here for.
It considers business strategies: Any organization reflects its strategies through the things it
does within the organizational boundaries. So just like that the compensation policies also
reflect the ways an organization thinks for its employees and the way it helps its employees in
prospering which increases the sense of belongingness as the employee feels he/she is taken
care by the employer.
Helps in employee retention: A motivated employee is very easy to be kept. An employer
needs not to do extra effort for the same. This results in high employee retention process. A
company with good employee retention ratio is recognized as a well reputed company.
Employee retention acts as a benefit to the employees as well as for the organization. Any
company with this recognition is termed as a better place to work with and the employees feel
good about the company
Helps in performance evaluation of the employee: When an employee is paid, his/her
performance has a higher impact on the payment so and employee is well noticed by his
performance and then he/she is paid according to that.
So compensation also boosts performance therefore for high benefits, the employee needs to
perform well in order for their performance and compensation to match.
It leads to employee satisfaction: Satisfaction is a crucial thing to achieve. All these factors
together leads to employee motivation leading to employee satisfaction therefore loyalty.
The principle components of a compensation and benefit system are: Compensation and
benefit philosophy.
Benefits are a part of compensation and can be in monetary and non-monetary forms. The
non-monetary things can be educational benefits, family benefits, health benefits, bonuses,
retirement benefits, among other social amenities. The philosophy behind the compensation
and its benefits is generally to provide the employee the return in respect to the work they do
with an organization.
The philosophy for the same can differ depending upon the organizations and their policies.
General philosophy to be to pay in lieu of the work but detailed philosophy can depend upon
the company itself. The employees are made aware of the company policy right in the
beginning of their respective jobs. A printed handout or a soft copy of the company policy is
given to them and they are expected to go through and keep in mind. Any change in the
policy is then an intimidation to the employees. An organization remains with the power to
change the policy anytime but for the better conduct of further procedures they need to
inform the employee about the same.
The organization parameter may contain clauses for instance, ratings on performance of the
duties and responsibilities of employees, their behavioural impact, the issue resolving
capacity of the same among others depending upon the company. Evaluation may come as a
feedback or in appraisal form.
Pay structure architecture (Pay grades, pay ranges, and pay width): Compensation is
made up of several components like the basic pay, the dearness allowance (DA); the house
rent allowance (HRA), the travelling allowance (TA), incentives, and other benefits if needed
depending upon the company.
The payment is done according to the pay grades, pay ranges and pay width. All these things
depend upon several other factors such as, the job description, the employee’s age, the
company’s policies etc. The job description decides the technicalities of the job and the duties
which the person is expected to fulfil. The grade is decided upon the date of joining. It is a
total internal business of the organization. Range defines the upper and the lower limit of the
pay scale. It is the limit up to which a pay can rise.
The payment provided by the organization is totally dependent upon the industry analysis as
well as the internal analysis of the organization.
The internal analysis contains the capacity of the organization which may include the number
of the employees, the monetary capacity or the turn over etc. which helps an organization in
dividing the payment in the employees. External survey describes the industry or the same
type of organizations and the payment standard set by them for their employees helping the
organization in the setting of standard and avoiding conflicts. All these parameters are very
important in the compensation strategy.
Ratio of base pay to incentive pay: It is the ratio of the pay which an employee gets as an
incentive. The incentive is decided corresponding to work of the employee and the pay scale
given to him. The employee’s incentive is in proportion to the salary given to him. A hike in
the salary or the inc...
