Holland Enterprises Compensation and Benefit System
Document Type:Business Plan
A suitable compensation and benefits system inspires the employee's resolution to offer the best performance. A compensation and benefits system is expected to respond to the dynamic nature of contemporary business practices and expectation of improving the quality of the human resource component. The ability to create value and attainment of organizational objectives is dependent on a system that asserts the essence of observing employees’ welfare. Compensation and Benefits Scheme Strategy Compensation involves the activity in which an organization rewards or pays an individual for services delivered in a specified manner through a contractual arrangement. Compensation acts as a significant incentive that promotes the ability and dedication of employees towards the improvement of organizational performance. As much as an organization expects the employees to create value through their input, it is equally reasonably fair that it undertakes significant steps towards improving the lives of people (Kaur & Vijay, 2016).
An efficient compensation strategy considers a broader perspective of factors that are present in the organization. Historically an increase in the base pay has been determined by the seniority and longevity in an organization. However, the trend seems to be taking a different paradigm to factor into a reward system based on the performance. Traditional United States companies came up with the structure of remuneration based on merit is the resolution to have the performance of the company commensurate with the compensation system (Martocchio, 2001). Decision making is crucial to defining the approach that will establish a practical compensation plan that works for both the workforce and the organizational abilities to sustain the strategy based on their financial state of affairs (Berger, & Berger, 2000).
As much as the employees play a critical role in the achievement of business strategy human resource practitioners through a tactical approach identify a compensation strategy that recognizes the cost and differentiation to achieve a suitable deal. In recognition of the general goals of a reward system together with how the system will effectively contribute to achieving the best performance. The principal role of a compensation system should be to attract the best talent in the market and keep them for enhancing the creation of value for the company (Gomez-Mejia, & Balkin, 1992). The best employees in the market, especially during recruitments, are interested in a competitive compensation package in the industry hence it highly depends on how the strategy has been structured by the organization.
The pay will be based on a performance appraisal undertaking that will factor in the development of pay grades based on the qualifications and job designation of employees. The labor market rates and job description will be pivotal towards developing the structure that recognizes effort and experience that creates value for the organization. The pay ranges will be responsible for analysis of the upper and the lower limit that the salary prescribes an employee should expect the pay to rise or the minimum rate. The organization's resource endowment will define seek to align the pay width to a level that will establish a sustainable position for the organization to support. The ratio of base pay to incentive (bonus). Some of the significant objectives that the proposed structure seeks include; • Advancing employee retention rate in which it offers satisfaction on the thought that their welfare is taken care of thereby living them to concentrate on the prerogative of delivering the best for the organization.
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