Running head: REVISED COMPENSATION AND BENEFITS PLAN 1
Revised Compensation and Benefits Plan for Holland Enterprises
Rebecca Yohn
BUS 434 – Compensation & Benefits Management
Instructor Marla Muse
November 28, 2016
...
Running head: REVISED COMPENSATION AND BENEFITS PLAN 1
Revised Compensation and Benefits Plan for Holland Enterprises
Rebecca Yohn
BUS 434 – Compensation & Benefits Management
Instructor Marla Muse
November 28, 2016
REVISED COMPENSATION AND BENEFITS PLAN 2
Revised Compensation and Benefits Plan for Holland Enterprises
As a highly regarded human resource consultant, I have been hired to review, analyze,
and revise the compensation and benefit system utilized by Holland Enterprises. The
organization currently has 3,500 employees, but has lost 25% of its staff since 2010. Upon
completing exit interviews, a majority of these employees stated the main reason they have
resigned is due to the compensation and benefit system that is in place. They have perceived
it to be unfair and uncompetitive in the current marketplace. I will need to explain to the
organization’s top management what an effective compensation and benefits system includes,
as well as show them a revised compensation and benefits plan that will fit the needs of all
their employees. I will also need to provide a clear and convincing argument as to why the
compensation and benefit expenses need to be increased, especially if they are trying to
attract new talent and retain valuable employees.
An effective compensation and benefit system
An effective compensation strategy “must address what it will take to keep the new
potential hire focused on performance and not distracted by personal matters that may in part
arise due to being hired by the organization in the first place.” (Weathington and
Weathington, 2016, chap 1.2). An organization’s compensation and benefits package will
need to focus on numerous components that can support their overall strategies and
objectives. Compensation takes place when employees earn rewards for their labor, whereas
benefits are awarded to employees in addition to regular wages. According to the
HRCouncil (n.d.), “Compensation and benefits affect the productivity and happiness of
employees, as well as the ability of your organization to effectively realize its
objectives.” (Para 4). Human Resources, together with top executives, must create
REVISED COMPENSATION AND BENEFITS PLAN 3
compensation and benefit packages that will attract new talent to the organization, as well as
retain valuable employees with experience. This can also increase morale and show
employees just how much the work they accomplish is appreciated. There are seven steps
that should be completed in order to create an effective compensation package: 1) create job
descriptions; 2) perform job evaluations; 3) conduct salary surveys; 4) evaluate job pricing;
5) conduct performance appraisals; 6) develop policies and procedures; and 7) review and
update as needed (Caruth and Caruth, 2009). However, current market data should be used
as well to help set the salary structure that may also attract and retain employees. Talking
with employees or conducting in-house surveys may provide additional data on which
benefits they are actually interested in at the current time. Not all benefits offered will meet
the needs of all employees, so if organizations can create a compensation and benefits
package that can meet the various and distinct needs of each individual employee, then it
would be effective.
The principle components of the revised compensation and benefit system
When revising the compensation and benefit system, there are principle components
that need to be reviewed and then revised. Th
[Show More]
.png)
![Preview of [SOLVED] EDCO 740 / EDCO740 Quiz 1 (LATES 2021/2022 Graded A)](https://scholarfriends.com/storage/EDCO_740_Quiz_1.png)
