The Compensation and Benefits Proposal Final Paper
Attracting and retaining the most talented employees is essential for long-term organizational success. An important component to attracting and retaining such employees is the design and implementation of an effective compensation and benefit system.
For your final paper, you are to assume the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by your city’s largest employer, Holland Enterprises. The firm employs 3,500 employees, but since 2010 has lost 25% of its staff. Exit interviews indicate the primary reason a majority of these employees have resigned is because of a compensation and benefit system that is perceived to be unfair and uncompetitive in the marketplace.
You are to present to management a revised compensation and benefit strategy. Your proposal should include the following:
- Describe at least three factors of an effective compensation and benefit system to contribute to organizational effectiveness.
- Explain the five principle components of your revised compensation and benefit system for a large-scale organization. Your compensation and benefit system should include the following components:
- compensation and benefit philosophy
- pay structure architecture (pay grades, pay ranges, and pay width)
- ratio of base pay to incentive (bonus) pay
- emphases on external equity or internal equity
- principle type of benefits to include (examples: deferred compensation match, health insurance, vacation and sick leave, etc.)
- Develop a recommendation for each principle component for top management.
- Discuss a final summary and conclusion to increase the compensation and benefit expenses to be presented to top management.
