Compensation and Benefits - Assignment Example

HRM Simulation The economic crisis we all are facing today is greatly affecting a company’s ability to hire and retain people. This poses a problem for job seekers as unemployment rate increases and at the same time a problem for companies since lack of employee funding would diminish quantity and quality of business results achieved. However, as human resource personnel in ACME, Inc., one would have to weigh the amount of compensation the company can afford to offer and the ability of an employee to bring in financial results, which should go beyond the company’s expense to keep him.

Thus, maintaining a status quo on recruitment and at the same time focusing on keeping the best employees is a key issue. To be able to hire the best people and at the same time keep high performing employees in your company would entail offering an attractive compensation plan that do not only provide good salary but at the same time security in their career. Offering a reasonable salary (or, perhaps, the one that is slightly higher than that of other companies for the right applicant or employee, if one could afford it) would be a wise business decision.

This is because one should not only consider the monetary expense of a company but at the same time look at the potential of an employee to provide great returns to the company. Letting go of an employee just because of a slight salary demand could mean losing committed employees who understand a company’s mission, vision, and values which greatly nurtures a good working environment; and a good match to achieve diversity in skills and knowledge that is key for program effectiveness which could result to more company expense (MANP Principles & Practices for Personnel Policies, n.d.).

Aside from offering a good salary providing security and opportunities for personal growth and development is very important. This would mean guaranteeing not only employee’s well-being but also their dependents such as family members by providing sick leave, maternity/paternity leave, vacation leave, overtime pay, medical insurances, retirement plans, educational/training funds to improve one’s skills and etc (MANP Principles & Practices for Personnel Policies, n.d.). This would be one strong factor that would make employees think twice about accepting the job or staying in the company even when there surely are other companies that are willing to pay a higher price for their service especially because of their work experience.

Managing the costs of widening the coverage of company benefits not only to the employees but also their dependents and at the same time allotting budget for employee trainings are important. This could be done by establishing company practices such as environmental friendliness and conservation of energy which will certainly cut off unnecessary expense caused by the wastage of company supplies. Some of which would be unplugging company computers after using, reusing water to flush toilets or for cleaning, sharing documents through emails instead of printing them in paper and etc.

Indeed, Corporate Social Responsibility internally (which is to take care of your employees by providing them more than what they need to make sure they are physically and mentally equipped to do the job), as well as externally, by ensuring that the company is not harming people outside the company and the environment in doing company activities is the best way to attract and retain the high qualified employees, which can become possible through the savings of a company. Reference MANP Principles & Practices for Personnel Policies. (n.d.). Maine association of nonprofits.

Retrieved November 6, 2012, from http://www.nonprofitmaine.org/pps_personnel.asp