Human resource consultant

Anonymous
timer Asked: Oct 17th, 2018
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Question Description

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 2010 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:

  • Description of how an effective compensation and benefit system contributes to organizational effectiveness.
  • Explanation of the principle components of your revised compensation and benefit system for a large-scale organization as well as a recommendation for each component.
  • Provision of a clear and 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

  • Paper must be 2500-3500 words in length, exclusive of Title Page, References Page, Appendix, References, Exhibits, etc .
  • Formatted according to APA style as outlined in the approved APA style guide (including title page and reference list).
  • 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 eight scholarly references in addition to the course text.


Course text: Weathington, B. L. & Weathington, J. G. (2016). Compensation & Benefits Management

Tutor Answer

Doctor_Ralph
School: Carnegie Mellon University

Attached.

Running head: THE ROLE OF THE COMPENSATION AND BENEFITS SYSTEM

The Role of the Compensation and Benefits System to the Employee and Organizational
Performance
Names:
Institution:

1

THE ROLE OF THE COMPENSATION AND BENEFITS SYSTEM
The role of the compensation and benefits system to the employee and organizational
performance
Employees form the most important resource in every business environment.
Attracting and retaining competitive employees plays a significant role in the success of an
organization. One of the most effective ways to attract and retain these employees is to adopt
an enticing benefit and compensation system. As Sell and Cleal (2011) note, the primary
reason that most employees work is so that they can get sufficient returns for their upkeep as
well as to maintain their families. At the same time, compensation and benefits serve as an
appreciation of the company to the services of the employees. Should a company underpay or
provide limited benefits to the employees, an employee is likely to feel used or underappreciated by the company. In fact, this is one of the primary reasons that Holland
Enterprises has been recording an employee turnover of 25% despite being the largest
employer in the city. As the largest employer, the company is expected to remain competitive
in the employment sector and have a privilege to select the best as compared to other smaller
market players that may lack the necessary resources to entice good employees. As a way to
find a solution on ways that Holland Enterprises can reduce the high employee turnover by
analyzing the effects of employee compensation and benefits system to the company’s
effectiveness, the development of a clear compensation and benefits system, and a
justification of the benefits of this system to Holland Enterprises.
How an effective compensation and benefits system contributes to organizational
effectiveness
The success of an organization lies in the effectiveness of the employees. Unlike the
misperception that the mechanization and the value of resources that an organization owns
determine its effectiveness, Weathington and Weathington (2016) insist that, as the most
valuable resource, employees play a lead role to the success of an organization. Regardless of

2

THE ROLE OF THE COMPENSATION AND BENEFITS SYSTEM
the state of technology and automation that an organization has achieved, it will always rely
on human capital to control, monitor, and service these systems. In return, this should be the
most valuable resource for a company. This means that the company should invest heavily in
the human resources and ensure that the employees possess the right skills and competence
relative to the operations that run within the company. In the end, it will be the competence
and reliability of these employees that will determine whether or not an organization
succeeds, the throughput that it generates, and the quality of products that it generates.
Other than investing in employees, adopting the right compensation and benefits
strategy affects the performance of the employees. In a recent research, it was identified that
the compensation and benefits that employees gain from an organization determine their level
of satisfaction and commitment to a particular organization (Auer & Antončič, 2011). In this
case, every organization would wish to have a satisfied workforce and one that is committed
to its services. For instance, a workforce that is satisfied is less likely to seek additional
sources of revenues as the one that the organization offers will be sufficient. This will mean
that the employees will focus all the energy towards their assigned duties. At the same time,
research has shown that employees are likely to commit themselves to their services when
they feel well appreciated based on the compensation that they receive and their perceived
value of the services that they offer (Pouliakas, 2011). Should the commitment of the
employees fall, the employees’ throughput is likely to fall with...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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