Create a competitive pay and benefits plan, in 5-6 pages, using the same company as the one in the previous assessments.

Expand All

Introduction

Organizations need a thoughtful compensation program to remain competitive and to attract and retain top talent. Companies are having a tougher time than ever sourcing and retaining enough skilled talent to fill all of their needs. To overcome this hurdle, many organizations are focusing on building an employer brand, which includes a robust benefits package and greater incentives to reward performance.

Companies must create their overall philosophy of how they compensate their employees with their pay and benefits. A compensation philosophy is a formal statement that explains the company’s position on employee compensation. It explains the why behind their pay practices and it creates a structure for consistency. Employers also use their compensation philosophy to attract, retain, and motivate employees. Companies must also develop their benefits and compensation budget. Budgeting doesn’t have to be too complex, but it should be realistic and comprehensive enough to encompass all areas of an employee’s total rewards.

Instructions

For this assessment, use the same company as the one in the previous assessments.

Assume you have already created a budget for your pay and benefits program.

In 5–6 pages:

• Create a compensation philosophy statement for the organization.
• Address the following questions and justify your responses using the job you selected in Assessment 2.
  • Will this position be full time or part time, and exempt or non-exempt?
  • What will the pay for this position be?
  • Will there be incentive pay as well?
• Analyze the major laws with which your compensation program must comply.
• Describe the legally mandated benefits you will include in your benefits package. Identify the state in which this business operates and identify any specific state-mandated benefits as well.
• Describe the discretionary benefits you will include in your benefits package.
• Analyze the major laws or acts with which your benefits program must comply.
• Analyze the employer cost of benefits as a percentage of the total compensation package.
• Analyze the trends that affect the cost of benefits.
• Evaluate the effectiveness of your compensation and benefits program to attract and retain talent.