Within this business report, I have analyzed three different employee compensation strategies that I feel could be well executed within our organization. Employee compensation is key to recognizing and rewarding our employees for their performance and contributions to the overall company’s success. Because it is a signficiant factor, we need to carefully evaluate the three options in my report.…
A compensation strategy is one of the many human resources (HR) tools that organizations use to manage their employees. For an organization to receive its money’s worth and motivate and retain their skilled employees, it needs to ensure that their compensation system is not an island by itself. Not only is it important for an organization to link compensation to its overall goals and strategies, it is important that its compensation system aligns with its HR strategy. Let’s face it, if an organization is not paying its skilled employees what they are worth or at least the industry average, the chances are they will find an organization that will pay them for their talents.…
This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.…
A company’s fundamental purpose and objective of compensation is to provide adequate and equitable rewards to employees at a level that matches theirs skills, abilities and contributions to the company (DeNisi, Angelo S., Griffin, Ricky W., 2008, p. 284. Para. 1). Compensation is the human resource management function that deals with every type of reward that individuals receive in return for performing work – including financial and nonfinancial rewards. Financial rewards include direct payments (e.g. salary) plus indirect payments in the form of employee benefits. Nonfinancial rewards include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others (Cascio, 2006, p.418, Para. 1).…
Compensation laws designed to protect the employees of an organization. A compensation package comprises of monetary and non-monetary benefits to help an organization in retaining the highly qualified, to spark high performance, and to attract quality applicants. Those compensations will vary from industry to industry and from employer to employer within those industries.…
As already mentioned, a good reward system helps attract and maintain a highly skilled workforce, lower the rate of employee turnover, and inculcate a high performance culture. The first recommendation is that the Remington Hotels should ensure it has an elaborate reward system that award its employees’ effort and that recognizes them among other employees. According to Gagne (2014), an employee reward system encourages other workers to increase their performance once they see that effort is rewarded (p. 61). He further notes that a reward system is crucial for reducing levels of burnout among employees, which is attributed to lack of motivation for workers who place much effort in their work.…
As you might expect, any feelings of unfairness or perceived inequity are uncomfortable. They create a state of mind that equity theory says we are motivated to eliminate. What counts is how the recipient perceives the reward in his or her social context. Research on equity theory indicates that people who feel they are overpaid (perceived positive inequity) are likely to try to increase the quantity or quality of their work, whereas those who feel they are underpaid (perceived negative inequity) are likely to try to decrease the quantity or quality of their work. Fairness is a basic element of equity theory. Procedural justice is the degree to which the process, such as rules and procedures specified by policies, is properly followed in all cases to which it applies. Procedural justice within the Perfect Pizzeria organization decreases when managers are not present to oversee work. Interactional justice is the degree to which the people affected by a decision are treated with dignity and respect. Motivation has to be at a minimum for the employees because all their benefits have been stripped and they are getting tested and not trusted; they do not consider this fair at all considering the lack of benefits and trust. Therefore, the employees are acting their currently way because they do not perceive themselves to be…
Employee rewards and recognition are very popular. Awards can be in the form of money, prizes, plaques, travel, and public commendations. Recognition given After-the-fact display appreciation for individual or team efforts. Recognition can be tangible or intangible, and range from a thank-you card to travel. The rewards, and recognition goals or to attract, retain, and to motivate employees.…
The long study of human motivation has continuously shown that people will do that which they are rewarded for doing. Based on this concept, compensation has been recognized as the most meaningful professional reward for employees. Companies use compensation and benefits as a means of attracting and maintaining valuable employees. Organizations world-wide have further identified that financial incentives must be paired accordingly with the desired results in order to be the most effective. In recent estimates, a reflected 41% of payroll is comprised of employee benefits (M.U.S.E., n.d.). For this reason, it has become increasingly necessary to implement strategy in developing compensation and benefits packages that meet certain elements, such as being fair, being comparable to the pay of others, and providing satisfaction with the content of the work (M.U.S.E., n.d.).…
When designing a reward system for a human service organization it is important to note that persons who work in the human service industry do so because it makes them feel good to help others and to achieve positive results. It is important that employees receive bonuses and pay raises for their accomplishments, however receiving praise and recognition is important as well. Applauding employees who help to create an environment conducive of high performance, and persistently meets expectations, will go a long way in motivating other employees, and creating a positive work environment.…
The concept of rewards has developed over the time to represent more than just to pay cheque an employee at the end of the month. The concept of total rewards was emerged in the 1990s as a new way of thinking about the deployment of compensation and benefits, combined with other tangible and intangibles ways that company seek to attract best people.(Richard val del Walt 2010) As defined by Manus and Graham (2003), total reward ‘includes all types of rewards-indirect as well as direct, and intrinsic as well as extrinsic’. (Michael Armstrong 2006) The direct reward is what an employee receives from the employer in bank account such as base wage, bonuses, commission. Indirect rewards, often called “benefits” refers to that part of the total reward package in addition to direct pay, such as health & life insurance cover, retirement & pension plans, health care, company car and mobile phone (Koala Consulting and Training 2008). “There are extrinsic rewards, which cover the basic needs of income to survive (to pay bills), a feeling of stability and consistency (the job is secure), and recognition (my workplace values my skills). On the other hand, there are intrinsic rewards, the most important of which is probably job satisfaction, a feeling of completing challenges competently, enjoyment, and even perhaps the social…
Encourage management to take time to recognize those who have made a difference in your organization. not take away an employee reward program to punish employees if they fail to live up to organizational standards. Taking away rewards will only cause hostility and increase turnover. "Employees are the human capital of an organization. Organizations have the ability to reward employees in many ways" (Lawler & Worley, 2006). "To attract, retain and motivate employees, the company must implement an appropriate reward systems. The objective of this reward systems is to encourage desired employee behaviors to ensure the success of human resource strategies. Therefore, designing and implementing an appropriate reward systems that complements human resource strategies and fits business competitive strategies is currently an important issue" ((Hsieh & Chen,…
In today’s competitive climate lots of business owners are trying to get more from their workforce at the same time however their employees are trying to get more from their jobs. Reward and recognition programmes are one way that employers can motivate their staff into changing their key behaviors and work habits, thus benefitting the business. At the same time these schemes can also give the employee that little bit extra they are looking for from job.…
When we think of compensation, the first thing that comes to mind for most people is in the form of their income such as wages earned, or cash. However, compensation can come in many forms. Employers provide compensation to inspire and motivate employees’ performance to accomplish the organizations goals and objectives. Executive compensation is a governance mechanism that seeks to align the interests of managers and owners through salaries, bonuses, and long-term incentives such as stock awards and options (Hitt, Ireland, & Hoskisson, 2011). In this paper the author will discuss issues of executive compensation and what the future might be for these employees.…
As the employee work in the company he/she look forward to right remuneration for the work done by him. This remuneration in total that is provided to the employee for the work done by him/her is termed as compensation. In any Human resource policy Compensation form one of the most critical part. Executive…