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.
Assume the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by your cityâ€™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.
Present to the management a revised compensation and benefit strategy. Your proposal should include:
- Description of how an effective compensation and benefit system contributes to organizational effectiveness.
- Explanation of the principle components of your revised compensation and benefit system for a large-scale organization as well as a recommendation for each component.
- Provision of a clear and convincing argument to the already skeptical top managers of this organization to increase their compensation and benefit expenses.
At a minimum, your compensation and benefit system would 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 (example: deferred compensation match, health insurance, vacation and sick leave, etc.)
Guidelines for Writing the Final Paper
- Paper must be 2500-3500 words in length, exclusive of Title Page, References Page, Appendix, References, Exhibits, etc .
- Formatted according to APA style as outlined in the approved APA style guide (including title page and reference list).
- Must address the topic of the paper with critical thought.
- Must include an introductory paragraph with a succinct thesis statement.
- Must conclude with a restatement of the thesis and a conclusion paragraph.