Nobody downloaded yet

Human Resources- Compensation and Benefits - Essay Example

Comments (0) Cite this document
Introduction “Our knowledge of motivation tells us that people do what they do to satisfy needs,” (Robbins, 1993, p. 581). Before they do anything, they look for the payoff or reward. As such, this report has been designed to outline a proposed reward strategy that might be adopted by the Director of Reward at Massaman International (MI), a securities trading arm of Massaman Investment Bank in London…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96% of users find it useful
Human Resources- Compensation and Benefits
Read TextPreview

Extract of sample
"Human Resources- Compensation and Benefits"

Download file to see previous pages An analysis of the types of non-financial rewards that could be introduced and how this may affect retention. An analysis of the view on bonus arrangements and any recommendations in terms of required changes. Detailed recommendations to the issues raised will be given to the Director of Reward at the end of the report. 1.1 The organisation’s current reward strategy MI currently uses the extrinsic rewards strategy to compensate its employees for the contribution they make towards its viability. Basically, extrinsic rewards include direct compensation, indirect compensation as well as non financial rewards (Robbins, 1993). Direct compensation in this case includes a basic wage salary, bonuses based on performance as well as profit sharing. Apart from the high basic salaries being earned by the traders in this particular case of MI, the bank also calculate their rewards on overall profitability of the trading operation and this entails that they get anything between 30 and 50 % of what they have earned in profit for the Bank. Performance bonuses significantly contribute to the package earned by the dealers and these motivate them to put optimum performance in their operations. It can also be noted that all dealers currently attract a package of benefits including a company car, healthcare and pension contributions. Grobbler (1998) suggests that these can be awarded to the employees on the basis of their performance. The traders are treated as the most valued assets to the bank as they may leave if they are not satisfied with the reward system for their performance. As such, their rewards are designed in such a way that they will appeal to their interests which in turn can lead to their retention in the organisation. It can be observed that the major strategy used by the bank to offer rewards is based on overall profitability of the bonds that have been sold. The traders are entitled to get a certain percentage of the profit as their bonus. However, the external environment plays a significant role in shaping this strategy. The strategy is influenced by gathering and analysing competitor information so as to come up with the best reward strategy. In this case, MI tries to remain on top of other organisations hence it seeks to differentiate its rewards strategy from other competitors. The organisation is compelled to offer the best reward on the basis of the situation obtaining in the environment. The level of performance of the economy also shapes this strategy since bonuses are calculated on the basis of overall profitability of the trading operation. In the event that the bonds sold have poorly performed, this entails that their rewards will be lower which shows that the external environment has a bearing on the strategy of rewards. Though there is no direct government intervention in the operations of banks with regards to their reward systems, it can be noted that more financial institutions are becoming wary of not rewarding undue risk taking. For instance, the recent Turner report contributes to the mounting pressure for financial organisations to review their bonus systems in order to protect the interests of the shareholders. These are some of the external factors that shape the rewarding strategy by MI. 2.0 What motivates the dealing team? Since the dealing team has a very little loyalty to the ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Human Resources- Compensation and Benefits Essay”, n.d.)
Retrieved from
(Human Resources- Compensation and Benefits Essay)
“Human Resources- Compensation and Benefits Essay”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Employee compensation and benefits
...?Running Head: ABBREVIATED OF YOUR CHOICE (all caps) and Section # of Employee Compensation and Benefits The employees of a company are considered as the most important one of its factors of production. A company with efficient workers is more likely to be successful as the work of the employees has a direct impact over the performance of the entire organization. The management of the organization's most valuable assets-the employees, is known as Human resource management. Human resource management involves the process of recruitment, selection, training, compensating and maintaining the work force in a way that they are best able...
2 Pages(500 words)Essay
Human Resources- Benefits
...? Human Resources - Benefits        Affiliation     with more information about affiliation, researchgrants, conflict of interest and how to contact Human Resources - Benefits Part 2: Statement of the issue Microsoft is popularly recognized as a leading company for offering one of the best and most inclusive compensation and benefit packages in the country. Microsoft provides compensation as well as benefit packages to its employees to an above average limit. But considering the past five years, it can be seen that many benefits have been cut short. One of the main...
7 Pages(1750 words)Essay
Compensation and benefits management
...? Compensation & Benefits Management Affiliation: Human Resource Management (HRM) gainedits significance in the professional arena like never before. Organizations require to attract, sustain and encourage brains to accomplish goals. Nowadays humans are considered as one of the most important assets required to carry out the tasks effectively and efficiently. Among many techniques which companies utilize to attract the potential minds, keep and encourage its people is Compensation and Benefits Management (Zingheim and Schuster et al., 2009). Compensation & Benefits Management An effective...
5 Pages(1250 words)Essay
Compensation and Benefits
... promotes innovation and recognizes that the most value assets of the corporation is the workforce. Compensation packages include a competitive base salary, stock options, and other basic benefits in health insurance (medical, dental, vision, long-term disability), 401k plan matching, paid holidays and personal time off (PTO), and military duty leave. In addition, Cisco also has Work/Life programs for the employees, Childcare services, Employee Discount programs and Reward/Recognition programs. In 2008, Cisco was ranked fourth in FORTUNE magazine's "100 Best Large Companies to Work for in America" list (Cisco, 2008). Conclusion The organized or planned human activity under the structure of organization has to be carried out with precision... , dealers...
8 Pages(2000 words)Essay
Compensation (Human Resources)
...programs, paid leave or housing. Benefits and rewards receive by the employee from the employer is the non-monetary compensation. According to Tatum (2010), in order for employees to be more productive and motivated, business should provide more detailed incentive – the total compensation package. The package should be well designed to attract, retain, and motivate competent workers in the organization. Total Compensation Package: Components To decide on what component to be included in the compensation package is far more complicated than just deciding on the payment of employees. The expectations of the employees on what would their...
2 Pages(500 words)Essay
Compensation (Human Resources)
...objectives. These plans recompense performance with the time period of 2 to 5 years. Perquisites. This remuneration normally comprises with use of a car, employee retirement plans, and various contracts. 2).What are the key Differences Compared to the Strategies of Microsoft and SAS? Compensation and benefits are: • A very high sales incentive with base salary • Bonus provided regularly, which are depended on company profit • A high sales potential • Freedom in working from any location and the flexibility in the working hours 3) Summarize the key Similarities and Differences The key similarity among the Apple Inc and the Microsoft is in the efficient potential by both the company sales. Good sales incentives...
2 Pages(500 words)Essay
Compensation & Benefits
...of profitability and productivity. References Calvin, R. (2001). Sales Management. New York: The McGraw-Hill Companies, Inc. Churchill, M. (n.d.). Incentive Programs. Retrieved from Garcia, J. (2010). What is 401K?. Retrieved from Mazin, R., & Smith, S. (2004). The HR Answer Book: An Indispensable Guide for Managers and Human Resources Professionals. New York: AMACOM. Menguc, B., & Barker, A. (2003). The Performance Effects of Outcome-Based Incentive Pay Plans on Sales Organizations: A Contextual Analysis. Journal of Personal Selling and Sales Management, 23(4), 341-358. Webb, J. (2010). What are Employee...
15 Pages(3750 words)Essay
U08a1 Compensation & Benefits Assignment Template
...Compensation and Benefits Number Introduction Compensation and benefits is a sub-division of human resources management, dealing with employee remuneration and benefits through policy-making initiatives. Incentives that stimulate better work may be provided periodically, depending on an organization’s culture and objectives. Monetary and Non-Monetary Types of Employee Compensation Formal Pay Structure Monetary incentives may come through salary increases or be given separately Non-monetary Compensation Non-monetary compensation implies involve benefits given to...
1 Pages(250 words)Essay
Compensation and benefits
...COMPENSATION AND BENEFITS COMPENSATION AND BENEFITS Compensation, in terms of human resource management, refers to monetary or non-monetary rewards in return for the services rendered by an employee. An individual takes up a job and offers his unique expertise in exchange for compensation of his efforts, thus, compensation is one of the key aspects of human resource management in any organization. Every organization strives to offer its employees tangible and intangible benefits so that they are satisfied and less likely to quit or contribute...
3 Pages(750 words)Essay
Compensation and Benefits
...of rewards for both groups and individuals. In both the individual’s spot bonuses and the group bonuses I will ensure equitable rewards i.e. for each level of output achievement, there will be a particular amount of bonus that the individuals or groups will achieve (Hansen, 2011). To be motivated, the groups or individual will strive to achieve the top most level of output to achieve the highest bonus. That way, I do believe that any perception of unfairness will not arise in the company (Thomsen, 1980). References Hansen, F. (2011). New Compensation & Benefits Resources. Compensation & Benefits Review, 43(5), 263-272. Noe, R. A., Hollenbeck, J. R., Gerhart, B....
3 Pages(750 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Essay on topic Human Resources- Compensation and Benefits for FREE!
logo footer
Contact us:
Contact Us Now
FREE Mobile Apps:
  • StudentShare App Store
  • StudentShare Google play
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • Miscellaneous
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us