Attracting and retaining the most talented employees

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 ...

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 2007 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 a discussion of:  How an effective compensation and benefit system contributes to organizational effectiveness.  The principle components of your revised compensation and benefit system for a large-scale organization as well as a recommendation for each component.  A 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.) Compensation is the amount paid in lieu of a service or anything from a person. Compensation is a term everybody is familiar with. This term denotes the payment in lieu of the work done. The compensation depends on so many other factors and those are, the type of work done, the effort involved in it, the quality of the work done, the policy of the organization or the local standards, the job designation and responsibilities covered, the experience of the individual etc. Basically it This study source was downloaded by 100000831988016 from CourseHero.com on 10-24-2022 05:55:37 GMT -05:00 https://www.coursehero.com/file/18164394/Attracting-and-retaining-the-most-talented-employees-is-essential-for-long-term-organizational-succe/ Compensation and benefit system is also perceived as payment but it also acts as a tool of motivation for the employees. The compensation plays a very important role in today’s world. Compensation is paid to someone who has given something to you. In terms of organization, compensation is the amount the employer gives to the employee in lieu of the work done by the employee. The compensation is decided in various ways, such as the market trend, the competition of close substitutes, the experience of the employee, the job description, the responsibilities he/she is expected to fulfill in his job etc. Compensation and other benefits of compensation help the employee in various ways of motivation and also help in the retention of the employees. Employee benefits are also a form of compensating the employees for the work they do in the organization. Thesis statement-“It is the biggest deal for the organization to decide over the compensation and the benefits of the employees. Compensation can act in various ways. Motivation, retention, attrition etc can be some consequences of compensation. A paid benefit can retain the employee or can lead to the attrition of the same. This is the main and the direct link between employee motivations also.” The problem with this company i.e. Holland Enterprises is that the policy it has adopted for compensation seems to have a serious issue and that is why the attrition of the employees have increased terrifically. The company seriously needs to revise the strategies in terms of compensation to retain its employees to a longer extent. The revision of compensation policy will keep the employees satisfied and they would not leave their jobs so quickly. An effective compensation policy can effectively manage the employees in the organization and thus can keep the company with a good image.