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HUMAN RESOURCE MANAGENT HOLLARD COMPENSATION AND BENEFIT STATEGY In the context of the Holland Enterprise which 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 operations will be achieved especially when a more standard and comprehensive compensation schemes 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: Anybody who is working with an organization is working there just because of the compensation he is getting there for. To complete one’s liability one needs the money and to earn money people work. The one who does not have the monetary benefit tends to join the NGO’s. So it is the thing which keeps the employees motivate as it is the biggest desire that a person is here for. It reflects 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 employee in prospering. A feeling of being taken care by the employer increases the sense of belongingness. 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 helps in performance evaluation to ensure that the performance of the employee matches with the compensation and the benefits given. It leads to employee satisfaction: Satisfaction is the most important thing to be achieved. All these factors together leads to employee motivation and employee motivation lead to employee satisfaction. One cannot think of loyalty without satisfaction. The principle components of a compensation and benefit system are: Compensation and benefit philosophy. Benefits are a part of compensation and can include non-monetary things with it. The nonmonetary things can be health benefits, educational benefits, family benefits, bonuses, retirement planning, and other social amenities. The philosophy behind the compensation and the benefits linked to it is generally to provide the employee the return in respect to the work they do with an organization. The philosophy for the same can be different 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 hand out or a soft copy of the same is given to them and they are expected to go through that and keep that in mind. Any change in such a policy is then intimidated to the employees. An organization keeps the power to change the policy anytime but they need to inform the employee about the same for the better conduct of the further procedures. The parameter may contain clauses like, ratings on performance of the duties and responsibilities, the behavioral impact, the issue resolving capacity of the same and additional things 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 such as the basic pay, the dearness allowance or DA; the house rent allowance or HRA, the travelling allowance or TA, the incentives, if required and other benefits 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 fulfill. The grade is decided according to the date of joining also. 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. This helps an organization in dividing the payment in the employees. External survey describes about the industry or the same type of organizations and the payment standard set by them for their employees. This helps the organization in the set standard and avoids conflicts in the organization. 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 according 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 incentive is generally a part of the basic pay he gets. External equity and internal equity: Equity is the value of the organization. It is the terminology used to denote the total asset of a company. So salary or the compensation and additional benefits of the company totally depend upon the equity which the company possesses. Principle type of benefits to include: Benefits include so many things along with it. It consists of the things that are inclusive along with the salary. The benefits can be monetary or non-monetary. Some examples of benefits can be health benefits to the employee, liberal plus concise in the leave policy, educational support, compensation well matched with the industry, retirement benefits etc. Benefits also act as a motivator for the employees. The compensation scheme of Holland’s operations will also consider the use of equity such as stock, options and performances of shares in the market this will be basically to constantly focus on Holland’s performance market behaviour which is a critical element of operations. The scheme should also be designed in the consideration of the product life cycle of Holland operations. This is where the company should entail each benefit related with the performances of their products at the four main stages such as at the introduction stage, growth stage, stability and divestment stage. This then clearly indicates that the pay structure will be considered based on the level and position of the product in the market which is critical based on the fact that Holland Company deals and relates with variety of products. In the context of Holland operations ensuring that there is achievement of the internal equity the company will always review each and every employee salary where during the review periods the salary of the employee reviewed will be compared with another employee performing the same task in the organization. This then will be able to generate any indications of the internal equity existence. If there is no internal equity then the review process will be subjected to thorough change in terms of compensation and benefit scheme. This then being the fact Holland operations will be able to achieve fair payment to each and every employee of the organization in relations with same roles of other staff members. It is worth noting that the major differences in internal equity it will be based on merits related with educations, experience, years of service in Holland Company and level of responsibility of Holland’s operations which will be an automatic generates salaries differences and payments. In the context of achieving external equity in the Holland’s operations where employees of Holland’s company will perceive that they are rewarded fairly in relations with Holland’s competitors .it is clear that Holland will look into the following dimensions; Vast uses of salaries surveys are critical in the context of comparing Holland’s compensation and benefits in similar roles in other organizations.hrcouncil.ca. (2017).Compensations and Benefits. Retrieved from http://hrcouncil.ca/hrtoolkit/compensation-systems.cfm In this regards then Holland will ensure challenges such as full time employments are addressed to a larger extent thus achieving key roles and responsibilities are similar as compared with other sectors. The key principle components Holland’s compensation and benefit scheme will consider includes; Payment of salaries and wages in the context which should be used to motivate the current employees of Holland and potential Holland’s employees’ .This is where salary in the context of Holland operations will be tied to employees’ skills and experience. The company should also vastly consider subsequent increase in salaries and wages where this will be based on employee’s performance, value and contribution towards the success of Holland’s operations. The company should also vastly consider the use of bonuses which will be considered at the end of Holland’s fiscal year. This will be based on providing performance incentives based on the performances of various departments in the Holland’s operations. This is where profits sharing plan should be initiated as well as recognition of personality’s performances through enabling their goals in the Holland’s operations. These bonuses that the company will consider at the end of each and every fiscal year will be short based bonuses. The company will also entail long term incentives which will be based on the company stock in the context retaining Holland’s valuable team members. Health insurance entails the core consideration of Holland’s operations where the company should initiate a standard employer-sponsored plan in the context of covering medical bills to any of Holland’s employee. This is where the company should retain about 2.5% of the employee monthly salary to contribute to medical pool which will cover the entire family related with the employee.AllBusiness. (2016). Key Compensation Components. Retrieved from https://www.allbusiness.com/key-compensation-components-794-1.html Retirement plan is also vital for employee in Holland’s operations and due to this fact the company should ensure each and every employee retains some amount through saving with the company to ensure future preparation of employees after Holland’s life. It is therefore clear based on the above analysis that has been facilitated above it is therefore critical for the Holland management to ensure allocation of large amount of funds to cover sensible compensation and benefits schemes in that; It is vital to be in line with the industry operations in terms of compensation and benefits. This is critical for Holland’s operations in achieving it goals and strategies in the market such as acquisition of competence employees. It is also vital for Holland management to allocate quantifiable amount of compensations and benefits to its employees in that the company reputation in the entire global market need to remain positively to propel acceptability of the company products and services which is the main function and core existence in the market. In order to achieve and acquire competitive competencies in the prevalent market which has been dynamic and demanding there is need by the Holland company management to readjust its compensation and benefit schemes otherwise the company is doomed to failure in future if it does not take this consideration. For creativity and innovation to prevail in the Holland operations it is vital for redesigning of the compensation and benefit scheme by the current management this is in the context of ensuring that the market demand is achieved. Through creativity and innovation by the company it is evident that the current social dynamics which has been based on instant society can be easily achieved through various roles and responsibilities that are facilitated by the employees of the company. To achieve this there is need to motivate and assure Holland employee that their needs are taken care of thus facilitating the goals and targets of the company. Holland Company cannot grow without considering redesigning of their compensation and benefits schemes this is clearly based on the fact that various competitors are using compensation schemes and rewards to acquire core competencies in the context of propelling their global goals and strategies which are the most critical means of operations. Encyclopaedia of Business. (2017). Compensation administration. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Clo-Con/CompensationAdministration.html Through this justification to extend Holland enterprise operations at the global operations there is need to consider better motivation schemes which will act as the main source of market penetration at the global operations. Finally, through consideration of redesigning and allocation of the resources by Holland’s management to compensation and benefits schemes there is need to consider the status quo of the company attrition rate. It is evident that the company has lost about 5% of its core functionality which is the benefit of their competitors’ in that during the resignation processes some of the core functions holding various dockets disseminate some core processes and functionalities of the company where competitors maximizes on these strategies to mitigate any strengths of Holland’s in the market. This strategy is vastly used by new competitors especially when they offer best compensations schemes and securities to compete on the same verge as giant organization such as Holland Enterprise. It is therefore justifiable to reinstate that for Holland’s effectiveness to prevail there is need to reconsider and redesign the current compensation and benefit scheme for effective market operations. Strategies to convince the already skeptical top managers of this organization to increase their compensation and benefit expenses are: As this organization is running through serious issues of employee attrition so the data need to be presented before the top managers. The data should be well accompanied by the statics and a well explained presentation. The description will include the benefits that are there if we revise the compensation plan of the organization. To make it more real a set of examples from the industry will be very good. Those examples will show the mangers that it is now the alarming position for the company to check out the compensation policy. The compensation policy needs to be changed according to the industry regulation, the increased competition, the job description, the employee’s performance, the responsibilities to be handled in a job, the amount of risk involved and other monetary or non-monetary benefits depending upon the company. After all these things I am very sure that the managers will agree on the issue of increasing the compensation plan so that they can keep the employees with them and the attrition rate of the largest employer of the city can show some decreasing figure. In conclusion it is evident that compensation schemes entails the backbone of the organization operations since menaces such as high attrition rates and delayed mission and goals of an organization are always mitigated. REFERENCES Robert S Nadel. (2002). Principles of Compensation. Retrieved from http://www.nadelgroup.com/docs/08_nadel_compPrincipals.pdf Encyclopaedia of Business. (2017). Compensation administration. Retrieved from http://www.referenceforbusiness.com/encyclopedia/Clo-Con/CompensationAdministration.html All Business. (2016). Key Compensation Components. Retrieved from https://www.allbusiness.com/key-compensation-components-794-1.html hrcouncil.ca. (2017).Compensations and Benefits. Retrieved from http://hrcouncil.ca/hrtoolkit/compensation-systems.cfm Sara Rynes, Barry Gerhardt & Kathleen A Minette. (2004). the importance of pay in employee motivation: discrepancies between what people say and what they do. Retrieved from http://www.utm.edu/staff/mikem/documents/Payasamotivator.pdf Rachel Sarfin. (2012). Compensation Philosophy. Retrieved from http://smallbusiness.chron.com/compensation-philosophy-examples-14059.html Rose Johnson. (2016). Importance of Compensation in the Workplace. Retrieved from http://smallbusiness.chron.com/importance-compensation-workplace-38470.html
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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...


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