Organization's Compensation and Benefit Plan - Research Paper Example

 Jamba Juice is one that is considered a big name in the food and beverage industry today. They are a company or a brand that offers healthy and fun food and beverages and that operates all over the world – the United States, South Korea, Philippines, Bahamas, Canada, and etc. What it essentially offers are fruit smoothies, fresh juices and teas, coconut water, hot organic oatmeal, organic tea lattes, fruit and vegetable smoothies, frozen yogurts, breakfast wraps, salads, sandwiches, California flatbreads, baked goods and snacks, creamy treats, fruit and yogurt parfaits, fruit tea infusions, leaf teas, probiotic fruit and yogurt blends and etc. (Jamba Juice Company: Private Company Information, n.d.). What makes this company a big success is not really a matter of wonder anymore. This is because of the fact that aside from the healthy and active lifestyle it promotes, it has long been providing sound compensation and benefit plans to its employees. As a company they live and breathe health and wellness not only through their products but also through the perks and policies that the company allows their employees to enjoy. For them, their Human Resource team’s primary job is not only to find key people but most especially to keep them. One of the factors that makes them successful at it would be providing their employees not only with the minimum wage, social security contributions for each employee, whether a non-exempt or exempt, and the FUTA or the Federal Unemployment Tax Act, which most companies adhere to as it is mandated by law; they also provide more opportunities for success for their employees such as the entrepreneurial opportunities for its protein-boosted managers (Friedman, 2010, p.163). We all know that a lot of companies look at applicants in a bad light once their working record reveals a short term service in their past workplaces because of their desire for career growth. However, the Jamba Incorporation has a different mindset on this one. For them, this is a good sign from an employee that has a lot of potential to be an asset to a company, having the ability to possess utmost ownership in the business, which results in increased responsibility and loyalty. Thus, they provide entrepreneurial opportunities to their managers by giving them a percentage of the store’s cash flow for a bi-period, depending on how they run a certain branch’s business. Aside from that, they give credit to their general managers’ ability to increase their yearly sales by giving them money that accrues in a retention account which stretches over a three-year period. Once the manager has served the Jamba Incorporation for three years, the bonus is immediately paid to them (Sunoo, n.d.). Another bonus their employees enjoy would be that when a general manager completes a three-year term and decides to sign another three additional years with an employee, he or she is given a three-week paid sabbatical which is not charged against their vacation leaves while general managers can look forward to $1,000 bonus if he or she is able to promote an assistant manager to general manager (Sunoo, n.d.). All this is an application of the principle of providing “benefits in kind or bonuses,” which means that as an employee gets his or her monthly wage which is taxable, a company can practice a retention system by providing bonuses in cash such as these in exchange of a business they close for the company which is not taxable (Friedman, 2010, p.161). This indeed has created a generation of employees that are motivated to do more and be at their best all the time. Another great compensation plan that Jamba awards its employees is that they provide all their managerial employees with stock options. This is another principle covered by the compensation and benefit principles in the United States, where compensation for great work can also be paid in form of stock which includes not only stock options but at the same time stock appreciation rights (SAR), restricted stock, restricted stock units (RSU), and employee stock purchase plans (ESPP) depending on the financial capability and goal of the employee. Also, these stocks can be offered in two types: non-statutory stock (NSOs) and incentive stock options (ISOs) where the latter have sound tax treatment as compared to the former (Friedman, 2010, p.161). When it comes to training and improving the knowledge and skill base of their employees, the Jamba Incorporation never falls short. This is because of the fact that it is a mandate in their company for the general and assistant managers to undergo a five-week intensive training program which does not only secure a better performance from their employees in the workplace but at the same time enhances the value of their employees in the industry they choose to be in. Aside from that employees of all levels also undergo personality training to be equipped in providing utmost customer satisfaction (Sunoo, n.d.). Though this is a kind of supplementary wage stated in the Compensation and Benefits principles which is not paid in cash but in kind and is totally not an obligation of the company, businesses who do so experience greater returns financially as we all know that employees who are the front-liners of any business can make or break a potential business for the company (Friedman, 2010, p.161). This is because of the fact that a bad customer service that could have been prevented by a training program offered by a company could not only cause the company to lose that certain customer but at the same time lose their family and friends as customers through the word of mouth. Indeed, a good word of mouth could only go so far as compared to a bad word of mouth which creates more damage than the former. Work-life balance with the Jamba Juice Company is not only encouraged but is indeed practiced within the company. As provided by the Compensation and Benefits principles of the United States, aside from the vibe of how the whole company is made to imbibe a cool, refreshing, and healthy work environment, the company also provides great fringe benefits that are not subject to income and social security taxes that includes the provision of employee discounts to numerous establishments one could enjoy (Friedman, 2010, p.161). Jamba Juice employees are given special discounts to Viaggio Travel Club, CPAP Superstore with free shipping as well and a lot more. The provision of “working condition fringe benefits” under the benefits in kind and bonuses is something that Jamba Juice consistently provide its employees without hesitation (Friedman, 2010, p.161). This could be seen in the simplest areas such as providing flexible hours for its employees where they could get a time off or a shift covered by a fellow employee when provided with reasonable excuse. Also, they are given a one day in a week day off which if of their choosing that will best fit the lifestyle and situation of its employees. Thus, this policy really does not single out any employee status as this policy provides jobs for the single, the married ones, those that work at two to three jobs, and those who have their own small businesses, in school finishing a degree and etc. Indeed, the Jamba Juice Incorporation does not only provide a healthy alternative to all the health buffs today who want to not only live a healthy lifestyle but at the same time eat healthy as well; it also operates in a healthy environment in and out by shaping their policies to take care of their employees and by ensuring that they are happy. This is achieved more effectively when the stockholders of the company not only understand the mission and vision deeply but also guarantee a culture of sustainability by fulfilling the compensation and benefit plan principles of businesses in the United States and giving more than what is stated by the law. References: Friedman, S. (2010). Compensation and Benefits Reference Guide. New York: Lus Laboris. Sunoo, B. P. (n.d.). Blending a Successful WorkforceBy: Brenda Paik Sunoo. Compassion At Work: Managing Grief at the Workplace. Retrieved December 2, 2012, from: http://www.compassionatwork.com/art_jamba.html Jamba Juice Company: Private Company Information - Businessweek. (n.d.). Investing & Stock Research by Company and Industry - Businessweek. Retrieved December 2, 2012, from: http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=30365 . Read More