Human Resource Plan in Zeagol Company Ltd - Research Paper Example

Human Resource Plan in Zeagol Company Ltd Abstract Zeagol Company Ltd has been operating in the pharmaceutical industry for twenty five years since 1986 when it was official opened. This company majors in the production of medicinal chemicals, drugs, and other pharmaceutical products, and has been a key supplier to laboratories in the state of California. Currently, this company has nearly five hundred employees working for it. This company believes that its employees are the most important investment it requires for success. Due to this, this company has developed a comprehensive compensation and benefits package that is aimed at retaining and rewarding the people who are responsible for its profitability and long-term growth. Of recent, this company has been losing its employees to it s competitors who have been promising them better packages and pay. This paper develops a project charter to revamp this compensation and benefits package. Keywords: employees, company, communication Human Resource Plan Zeagol Company Ltd was established in 1986, and has been operating in the pharmaceuticals industry since then. This company produces and markets drugs, medicinal chemicals and other pharmaceutical products to laboratories in the state of California. This company has a comprehensive compensation and benefits package that is aimed at retaining and compensating, its five hundred employee base, which have been responsible for its profitability and growth. This paper designs a project charter to give a face-lift to this compensation and benefit package. Project Charter to Revamp the Compensation and Benefit Package This charter is created to formally authorize a project to develop and implement an upgrade of the existing compensation and benefits package. Included in this charter is a scope statement; a communication plan; and a work breakdown structure. Scope of the Project 1. Background In the past two years this company boasted of having an employee base of seven hundred laborers. This indicates that the number of employees has decreased by nearly twenty eight percent. One major reason for this decreased number is last year’s mass layoff that was carried out with an aim of doing away with the irrelevant and needles job positions. In this layoff, several departments were all also merged with an aim of reducing costs. Unfortunately, this layoff plan has not worked for the advantage of this company, since two years down the line this company’s profits have been declining ever since this mass lay-off was carried out. Somehow this layoff plan affected the employees psychologically since the remaining ones either lost the morale to work, or resigned for greener pastures. This resignation trend has increased since the beginning of this year, with some of the employees opting to leave unceremoniously without any formal notification. An attempt was made to solve this issue by changing the human resource manger, but this is not enough. It is important to this company the greener pasture that will attract the best employees in the market, and this can only be done through major changes in the compensation and benefit packages. Currently this company’s compensation and benefits package is structured as below, The employee’s benefits include the pension and retirement plans, life and health insurance packages, and the federally required unemployment and workers compensations. The employee compensation covers the wage and salary program and structure for the different job categories and levels. This company’s paying method has been conducted in line with the base pay method where employees are compensated depending on their role in the organization (Mathias & Jackson, 2010, p. 27). This compensation and benefits package can be summarized as below for workgroups A to F Work group   A B C D E F Benefits pension 50 550 600 650 700 750   life insurance 50 50 100 150 200 250   unemployment and workers compensation 43.0 62.5 82.0 101.5 121.0 140.5 compensation fixed wage 10,000 10,113 10,226 10,339 10,452 10,565   additional compensation (10% Of fixed wage across the work groups) 1,000 1,011 1,023 1,034 1,045 1,057 TOTAL PAY   11,143 11,787 12,031 12,274 12,518 12,762 With the changes taking place in the employee market, there is a need to devise a new or upgrade the existing compensation and benefits package to better retain the experienced staff and attract more qualified ones. 2. Scope Statement This project seeks to develop a strategy for revamping the compensation and benefits package for purposes of increasing the company’s profitability through increased worker morale, retention and attracting more qualified skills into the organization. In a summary, this project is formed for the following reasons in this organization; To counteract the present situation in which the company losses two to five employees every three months. To motivate the existing employs to work harder and increase their morale and motivation for work. To attract more qualified staff by offering favorable pay and competitive compensation and benefits packages. To increase the productivity of the work force and consequently increase the profitability of the company. At its completion this project will have satisfied the need for more workforces in this labor competitive market. Since this company depends so much on technical forms of labor, it needs to offer competitive packages in order to attract this form of skilled labor. Zeagol has of recent expanded into nearby states and has signed contracts with twelve more laboratories. This increased market calls for an increased labor in its production departments. 3. Expected results At the end of this project, Zeagol expects to have three hundred more employees to give a total of eight hundred laborers. Of these laborers, four hundred will be needed in the manufacturing department, two hundred in the sales and advertisement, and two hundred in the management and other related office duties. The new compensation and benefit package should include some additional units for it to attract more labor. The compensation package should include; Compensation stock options should be allowed to the employees at the time they are hired or periodically depending on their performance in the organization. A quarterly incentive plan, where the employees are entitled to receive bonus payments on monthly or quarterly bases. These bonus targets should be determined and set depending on the employee’s performance results in the specified quarter (Brounstein, 2011, p. 98). A retirement saving plan should be included in the benefits package as required by law. This plan should provide the employees with the opportunity to save for their retirement. The company should contribute nearly five percent of each employee’s salary to this kitty. An income protection plan should be availed to the employees in case they are hospitalized or are disabled to work due to health complications. In this plan the employee should be paid seventy five percent of his base pay for six months and sixty percent for the rest of the remaining period incase the illness is long-term. The benefits should include in addition to the above-mentioned Medical coverage for the employee and his qualified family members Life insurance plans including travel accident and life insurance for spouse and children. A paid time off and an educational reimbursement. 4. Communication Plan The communication plan for this charter is structured as in the table below Zeagol Company Ltd. Communication Plan Goal The goal of this plan is to revamp the current compensation and benefit package being offered to employees. Objectives To retain and attract more employees for purposes of having a stable employee base and increase profitability of the company Audience Management staff Operational level employees Shareholders Ground level employees Positioning Strategies Fair employment Equality in departments Reward based on performance Tactics Newsletters Memos Meetings Trainings Evaluation Positive response through increased labor figures will indicate adoption of plan. 5. Work Breakdown Structure The work breakdown structure assists in breaking down a project into smaller components in a way that organizes and defines the total work scope of the said project (Newell & Grashina, 2004, p. 29). Elements in the work breakdown structure can either be data, services or a product or even a combination (Kloppenborg, Nkomo, Fottler, & McAfee, 2011, p. 37). In the case of Zeagol Company, this work breakdown structure shall involve services as shown in the table below.  Task 1  Task 2  Task 3 Initial Stage Top management Define the need Strategies for the need Find solution Middle Stage Middle level management Forward solution to operational level Adjust salaries Add more benefits Add more compensations Human Resource Current employees Implement changes within two months Retires Not affected New employees Implement change immediately In conclusion, revamping the present benefit and compensation plan should lead to an increased profitability and growth to the firm. References Brounstein, M. (2011). Managing teams for dummies: A reference for the rest of us. Hoboken, NJ: Wiley. Kloppenborg, T., Nkomo, S. M., Fottler, M. D., & McAfee, R. B. (2011). Human Resource Project Management (2nd ed.). Mason, OH: Cengage Learning. Mathias, R. L, & Jackson, J. H. (2010). Human resource management. Mason, OH: South- Western Cengage Learning. Newell, M. W., & Grashina, M. N. (2004). The project management question and answer book. Broadway, NY: AMACOM. Read More