Compensation Benefits - Essay Example

Running Head: COMPENSATION BENEFITS Compensation Benefits [The [The of the Compensation Benefits Compensation and Benefits Plan Executive Summary Due to shrinking local labor market and increasing turnover within Lansing-Smith Corporation, the board members of Lansing-Smith will propose a complete and progressive compensation and benefits plan to the CEO to augment retention in the Company. Traditionally Lansing-Smith Corporation has paid only minimum wage and mandatory benefits. The following paper will propose the costs of the plan, exterior and interior equity, and creative methods of compensation and deliberate benefits for Lansing-Smith Corporation. Introduction I am the new Director of benefits for Lansing-Smith Corporation. I am recommending a compensation program that will hopefully retain our employees and offer those benefits that are better then other companies. It is my liability as compensation and benefit expert to conduct market pay studies, these studies decide what jobs that our company ought to pay, what benefits and incentives are suitable. I start with a clearly define job description; insure comparable market information, base pay, salary compensation, salary trend and total compensation. Then I will study salary survey data, make a few phone calls to external sources and send out complete questionnaires to companies and agencies to collect data relating to these job descriptions. The explanation will have title of job, department, who the employee reports to, a job summary and the synopsis of the necessary functions of the job. I then will accumulate my findings on a salary analysis form. "Position title, base pay, benefits such as medical, dental, vision, life, stock options, retirement benefits and additional incentives. (Appendix A & B) This will make it easy to contrast and examine information in various salary categories". With well defined job explanation and great tools to assist organize the information I can accomplish a market pay study to help our company stay spirited. The job assessment is a tool used to assess the worth of each job in our organization and in the market. With a winning job evaluation system I can make our organization's pay system evenhanded, understandable, lawfully defensible, approachable, and outwardly competitive. "I will use the job evaluations to: * Clarify job metaphors so that employees comprehend the expectations of their roles and the association of their roles to other jobs inside the organization. * Attract desirable job candidates. * Retain high-potential employees. The market assessment job will compare compensation for our organization's jobs to the marketplace rate for comparable jobs. This method necessitates precise market-pricing surveys. Market pay is the compensation paid for an exact job, including information regarding bonuses and benefits that is resolute by a continual analysis of the aggressive job market. Market pay data is a fraction of our organization's overall policy to determine evenhanded compensation. Otherwise, we may not remain spirited"(http://www.worldatwork.org). In raising a market pay study I will gain a list of companies that have positions related to our company's positions, and then I would converse job descriptions and pay ranges for every position. I will then have the market pay information needed to found and communicate employee compensation. "In reality, collecting data that precisely reflects the market rates for jobs in our organization is additional hard. Because your organization's most excellent similar jobs are likely to be those of our main competitors. As I conduct the market pay study, I keep in mind that I should use market pay data as part of the overall strategy not as the sole strategy to determine equitable compensation within our organization. Our organization's compensation values and compulsion to fair, evenhanded, and unbiased pay practices should also play a role, in addition to conducting marketplace pay studies" (http://www.allbusiness.com/articles/Research/2269-2219-2228.html). I have conducted this market data survey to proffer employees compensation benefits spirited to relative markets. Here are a few of the reasons for my advice to increase and get better our employer's benefits. To attract and hold able personnel, keep up with competition, endorse good morale, offer opportunities for progression and promotion as older workers retire. A mixture of these benefits is the most effectual and competent means of meeting employees' financial security needs. Salary ought to be tied to a person's skills and information. Also Salary increases need to be based on an employee's recital, value and involvement to an organization. The Compensation Benefits of Lansing-Smith Corporation; Health, Dental, visualization, small Term and lengthy Term Disability. 410K Plan, Stock options and Season Tickets to Football/Baseball (lottery ) Pay increased based on job description, and job market. Bonuses, Service awards Reimbursement of employee instructive expenses Sick leave and vacation Travel Expenses Cost of Plan In order to address the issues of preservation at Lansing-Smith, we must first look at price: are we spending too much, or are we not spending sufficient in addressing the recompense and benefits wants of our workers. We plan to look at the subsequent areas to see how cost will influence our bottom line in profits; present benefits plan vs. best benefits package, inducement programs such as bonuses and income sharing, and last completion of routine job evaluations to reflect present trends in compensation factors, position, and pay grades. Our HR department will be responsible for providing the initial data to support our claim, that we are not doing enough retain our employees, thereby we have incurred a high turnover rate. Lansing-Smith believes the market, generally profit of the company, and employee incentive will drive the cost of transform in these areas. Trade-off in these areas of corporate development will payoff in generally employee fulfillment, which will lead to higher profits. External and Internal Equity As a rising organization in office supply business, Lansing-Smith is experiencing a high turn over rate. Lansing-Smith be familiar with it is essential to retain and motivate an enough number of our qualified employees. This needs a base pay program that pays competitively by at least three percent or higher than our contestant. Lansing-Smith will also to into deliberation some interior factors in determining salary increases such as, Employee presentation Reviews, positions value to the organization and entity contributions experience, permanence with Lansing-Smith, and education. Methods of Compensation Employees must consider they have the ability and resources to meet the performance principles. For rewards to be inspiring, employees have to believe they can earn them. If Lansing-Smith was to put into practice one of the choices of inducement pay below the corporation could benefit from the pleased workers and increased output. Incentive pay is a form of pay associated to an employee's performance. APPENDIX A LANSING-SMITH CORPORATION EMPLOYEE BENEFITS SURVEY Statement Strongly Agree Agree Neutral Disagree Strongly Disagree Health Benefits I am satisfied with my health plan options. I am satisfied with my dental plan options. I am satisfied with my vision plan options. I am satisfied with my long-term disability insurance. I am satisfied with my short-term disability insurance. I am satisfied with my options for life insurance. Overall, I am satisfied with my health benefits. Financial Benefits I am satisfied with my retirement plan. I am satisfied with my salary. I am satisfied with the Employee Stock Purchase Program. I am satisfied with my opportunities for promotion, raises, and bonuses. Overall, I am satisfied with my financial benefits. Paid Time Off I am satisfied with the number of vacation, sick, and personal days that I receive. Overall, I am satisfied with my paid time off. Additional Benefits I am content with my continuing education and training opportunities. I am satisfied with my tuition reimbursement options. Overall, I am satisfied with my additional benefits. Overall I understand my benefit options. APPENDIX B LANSING-SMITH CORPORATION Appendix B Salary Analysis Template This form will help you with examine salary information you have obtained during salary surveys or other methods. Fill out the suitable information for your business and your competitors in order to contrast and examine differences in the variety of categories. Salary Comparison Sheet 1 Our Organization Local 1 Local 2 Industry 1 Industry 2 Position Title Base Salary Benefits (check if employer provides) Medical 0 0 0 0 0 Dental 0 0 0 0 0 Vision 0 0 0 0 0 Life Insurance 0 0 0 0 0 Other (specify) 0 0 0 0 0 Stock Options Retirement Benefits Perks Additional Benefits References Heathfield Susan, Develop Pay Scales Data. Retrieved April 7, 2006 from http://office.microsoft.com/en-us/FX011879991033.aspx Jones, Heather. Business World. Retrieved April 9, 2006 from, http://www.worldatwork.org Newsweek Magazine, All Business. Retrieved April 7, 2006 from http://www.allbusiness.com/articles/Research/2269-2219-2228.html Read More