Proposal on a Compensation and Benefits Plan
Proposal on a Compensation and Benefits Plan Sonia Miranda Sandra Gonzalez HRM/531 Management July 11, 2011 Devin Daugherty Proposal on a Compensation and Benefits Plan Globalization and economy downturn are forcing companies’ to structure their benefit programs differently. Before some companies had a wide array of compensation for employees, but that has changed and these companies had to find ways to cut cost of benefits offer to new employees and find new programs to retain their current employees.
Companies are basing their compensation and benefits programs on the economy decline and are attempting to contain staff sizes, payrolls, and benefits costs. On the other hand, small businesses have hard time competing with large companies (Cascio p. 463) because they have limited resources. For instance, BC Laboratories has been in business for more than 50 years and for the past two years has been struggling because business has slowed down. The company had to restructure the organization and combined some of the positions to save money and stay in business.
Their employees’ morale is low and lately they have had high employee turnover. The human resources department has presented a new compensation and benefit proposal to the BC Labs owner. Because BC Labs is going through hard times, a non-monetary incentive program has been proposed without affecting the company’s budget. This will increase employees’ morale and their motivation, yielding positive results. Purpose of the proposal This new proposal for a new compensation plan will include opportunity to row, flexible hours to accommodate to their personal needs and employee recognition program (Recognition Rewards Enterprises, 2011). This program will boost employee productivity, decrease the employee turnover, retain qualified employees, and encourage company loyalty. This incentive plan will boost employees motivation, grow, and productivity. This will benefit the company by aligning employees’ efforts with the company’s objectives, philosophies, culture, and values (2010). Flexibility on work schedule
Even though employees look for organizations that offer monetary and good benefit packages, they also look for organizations that offer other benefits like flexible work schedule. About 60% of BC laboratories have children and by offering flexible schedule they can attend to any school event, take children to the doctor, etc. BC Labs also has employees who are attending school and a flexible schedule will give them the opportunity to continue their education (Recognition Rewards Enterprises, 2011). Recognition and rewards
With this tough economy small company like BC Labs has hard times competing with the pay scale, and the introduction of the new non-monetary incentives will make the employees happy and the quality of work will be higher. According to Warren (2007), most people leave their job not because of the pay, but because they believe they are not appreciated or they don’t get alone with management. By recognizing their work and training management, they will feel as if they are a value asset to the company (Cascio, p. 561). Reward Programs on Productivity and Turnover
Employees need reassurance that they are doing a good job and by management acknowledged with a genuine “Thank You” will motivate them. This will increase the employee morale and productivity. Some of the rewards can include selecting an employee of the month based on employees’ performance, quarterly barbeque luncheon when meeting the deadlines on the quarterly projects. As part of the reward program, BC Labs can buy T-shirts, mug, and hats to give away when an employee goes the extra mile or help the company meet project deadlines (Recognition Rewards Enterprises, 2011). Opportunity to grow
The non-monetary incentive will give the opportunity to employees to grow, learn, and develop new skills to advance in the company. This new program will give employees the ability to be cross-trained so they can feel more valuable to the company. The management will also be trained to help employees reach their full potential and increase the possibilities to be promoted. Conclusion The new non-monetary compensation plan will benefit the employees but most of all the company because it will increase the employee retention, morale, performance, and his or her productivity.
At the same time it will help the company save money by lowering the employee turnover and keeping more experienced and committed employees. References Cascio, W. F. (2010). Managing Human Resources (8th ed. ). New York, NY: McGraw-Hill. Warren, M. (2007, Fall). Stuff is not enough. Marketing Magazine, 112 (11). Retrieved July 8, 2011, from EBSCOHOST database. Recognition Rewards Enterprises. (2011). Rewarding Employees Has Its Benefits!. Retrieved from http://www. recognitionrewards. com
