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Final Paper

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Running head: BUS 434 FINAL PAPER 1

Final Paper

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BUS 434 FINAL PAPER 2

Holland Enterprises: Compensation and benefits system Recommendations

Introduction

Compensation and benefit components are a critical area for the company’s HR

management, because they greatly affect employee behavior. For the sake of long term success

of the organization, employees have to perceive their compensation as fair, motivating, easy to

understand, and competitive in the market. On the other hand, the organization’s aim is to ensure

profitability hence the need to control labor costs. This poses a challenge to the organization’s

management especially in adopting a compensation system which motivates employees towards

quality services and high productivity, while at the same time controlling operating costs. For an

effective compensation system, the company has to acknowledge this challenge and address it

especially in today’s competitive environment where unfair pay results to high employee

turnover and low productivity, while over ambitious pay results to high labor cost leading to low

profitability of the organization (Ellis, 2008). This proposal will highlight what a fair and

competitive compensation should look like, and will address the key variables which ought to be

considered and analyzed when computing a compensation package.

Compensation and benefit philosophy

Today’s competitive business environment calls for companies’ commitment towards

employee compensation and making necessary changes towards adopting a fair and competitive

benefits package. The organization’s current high employee turnover clearly indicates that the

company’s compensation package is neither fair nor competitive, hence the low employee

satisfaction. The company has to seek ways of developing high performance and committed

employees (LJS, 2014). However, it is always challenging to adopt these changes and ensure

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Running head: BUS 434 FINAL PAPER 1 Final Paper Name Tutor Institution Course Date BUS 434 FINAL PAPER 2 Holland Enterprises: Compensation and benefits system Recommendations Introduction Compensation and benefit components are a critical area for the company’s HR management, because they greatly affect employee behavior. For the sake of long term success of the organization, employees have to perceive their compensation as fair, motivating, easy to understand, and competitive in the market. On the other hand, the organization’s aim is to ensure profitability hence the need to control labor costs. This poses a challenge to the organization’s management especially in adopting a compensation system which motivates employees towards quality services and high productivity, while at the same time controlling operating costs. For an effective compensation system, the company has to acknowledge this challenge and address it especially in today’s competitive environment where unfair pay results to high employee turnover and low productivity, while over ambitious pay results to high labor cost leading to low profitability of the organization (Ellis, 2008). This proposal will highlight what a fair and competitive compensation should look like, and will address the key variables which ought to be considered and analyzed when computing a compensation package. Compensation and benefit philosophy Today’s competitive business environment calls for companies’ commitment tow ...
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Tags: Bus Compensation and Benefits 434