Human Resource Management Compensation - Essay Example

Compensation Letter from me to the HR Manager recommending the remuneration package Human Resources Department - Internal Memo HR executive, Hanson engineering Inc. Chicago, IL Marc Melanson The HR Manager, Hanson Engineering Inc. Chicago, IL Hi Marc, Last week we held the final round of formal interviews for the job of Electrical Engineer, level III and I have short-listed James Richard as an excellent fit for the job profile. I am confident he will add value to the firm with his sound technical knowledge, his work experience and energy. His career growth has been rapid and his future prospects are great. I have put together a comprehensive package based on industry standards aligned closely with the company policy. His base salary offered will be $85,860 and is approximately an increase of 18% over what he is currently getting. All other benefits offered are standard as per our company policy. Since he is currently in Austin, Texas, I have factored him a Relocation Allowance for the move. I have enclosed the industry standards of the salary details and complete offer. Please send me your feedback so that I can proceed further. Thanks. Salary survey results $75,148 $84,860 $94,954 HR Reported data as of December 2005 Electrical Engineer III 25th%ile Median 75th%ile Chicago, IL $75,148 $84,860 $94,954 BASE SALARY|BONUSES|BENEFITS |NET PAYCHECK ESTIMATE Total compensation (base + bonuses + benefits) Benefit Median Amount % of Total Base salary $83,660 73% Bonuses $1,201 1% Social Security $6,492 6% 401k/403b $3,072 3% Disability $2,071 2% Healthcare $5,390 5% Pension $2,749 2% Time off $9,269 8% Total $113,904 100% Your Estimated Paycheck Results Bi-weekly Gross Pay $ 3,217.69 Federal Withholding $ 670.28 Social Security $ 199.50 Medicare $ 46.66 Illinois $ 96.53 Net Paycheck Estimate $ 2,204.72 Calculation Based On Gross Pay (Annually) $ 83,660.00 Pay Frequency Bi-weekly Federal Filing Status Single # of Federal Exemptions 0 Additional Federal Withholding $ 0.00 State Illinois Exemptions 0 Filing Status Single Additional State Withholding $ 0.00 Job Description Electrical Engineer III Designs, develops, and tests all aspects of electrical components, equipment, and machinery. May use computer-assisted engineering and design software and equipment to perform assignments. Applies principles and techniques of electrical engineering to accomplish goals. Requires a bachelor's degree in engineering and 4-6 years of experience in the field or in a related area. Familiar with a variety of the field's concepts, practices, and procedures. Relies on experience and judgment to plan and accomplish goals. Performs a variety of complicated tasks. May report to an executive or a manager. A wide degree of creativity and latitude is expected. Source: Salary.com Compensation package Base Salary: Base salary is the compensation that employees are paid bi-weekly. Your base salary will be $85,460 comparable with industry standards for similar positions. Incentive plan: Merit pay plan: This will provide increases to the base salary based on your performance rating and contributions to the success of the projects undertaken. Performance Bonus: Performance Bonus is paid in addition to your base salary. The Performance Bonus provides an annual lump sum payment based on yearly business results and individual contributions. By linking earnings to individual, team, and company results, the Performance Bonus "pays for performance." Stock Plan: Employee Stock Purchase Plan: Employees have the option of purchasing company stock at a discounted rate of 6% of the market price as on the date of purchase. Stock is purchased through convenient payroll deductions, to a maximum of 10% of an employee's salary. Benefit plan Pension Plan: Bi-weekly contributions will be made to the individual's account based on earnings and years of service, starting at 3.0% and to a maximum contribution of 5%. The 401(k) is the most popular plan and payroll deductions are made as per employee interests. Vacation and holidays: The new employee is allowed three weeks of paid vacation. There are 12 mandatory holidays observed each year. In addition, the company provides privilege leave of three days in case of loss of loved one and three days of paternity leave. Travel insurance: The Business Travel Insurance plan provides benefits to the individual or immediate family in the event of accidental injury resulting in death, dismemberment or loss of sight or hearing when traveling on company business. Short-term disability insurance: In the case of illness or injury, the short-term disability plan can provides 100% of pay for a minimum of 4 weeks. After 4 weeks, depending on years of service, you will receive a fixed percent of the salary equivalent up to a maximum of 6 months. Flexible benefits: Medical coverage: Medical coverage includes medical, prescription drug, mental health and substance abuse treatment. You can enroll in a managed care plan that provides access to care through a network of providers in your area, or a traditional indemnity-type health plan that allows you to see any provider and use any hospital. The plan pays benefits based on a percentage of charges for covered services; some services are subject to an annual deductible. A supplemental plan will cover hospitalization expenses. Vision: The vision coverage includes one vision testing and one pair of glasses annually. Contact lenses are not covered. Dental: The flexible benefits program offers several dental options that provide different levels of coverage for routine, preventive, restorative and orthodontic services. Life insurance: The company offers basic life insurance coverage to all employees. The employee has the option of increasing the coverage by opting for a higher premium that can be done through payroll deduction. Accidental death and dismemberment insurance: This insurance pays a benefit if you die or are seriously injured as the result of an accident. You may cover yourself, your spouse and/or your children. Long-term disability insurance: LTD coverage continues after your eligibility of short-term disability income ceases. Education, Certification and Training: In order to facilitate career growth, we have in place an education policy where we reimburse expenses incurred towards pursuing higher education in the line of work. We also reimburse expenses incurred by employees for taking up related certifications, memberships, training etc. Relocation Allowance: You will be offered a one-time relocation allowance to be reimbursed against actual vouchers subject to a cap of $7000 dollars. This will cover the transport of personal belongings and vehicles, food and expenses during the move and re-registration of vehicle. This will be reimbursed along with the salary after completion of two months in office. Sources Salary.com Research from website http://salary.com/ 16 December 2005 Pay and Benefits from website http://www-03.ibm.com/employment/ca/en/pay.html 16 December 2005 Benefits at Microsoft - Our benefits from website http://members.microsoft.com/careers/mslife/benefits/plan.mspx 16 December 2005 Massad, Mary Creating a Smart Compensation package 23 May 2005 from website http://www.entrepreneur.com/article/0,4621,321558,00.html 16 December 2005 The benefits of working at Apple from website http://www.apple.com/jobs/ist/benefits.html 16 December 2005 Read More