Crafting a Compensation and Benefits Plan (Research Paper Sample)
the sample is about Crafting Compensation and Benefits Plans that help in attracting and retaining the best talents.source..
Crafting a Compensation and Benefits Plan
Crafting a Compensation and Benefits Plan
In the 21st century, benefits and salary are crucial considerations for employers and employees. Employers who wish to attract and retain the best talents for their firms know they have to remunerate their employees and offer benefits equivalent to the position and kind of work. Firms that want the best are willing to pay higher salaries compared to the industry’s average salary. In addition to salaries, several perks and benefits are added, which make these jobs attractive. These patterns are vividly evident, particularly with the information technology firms where they pay first-rate salaries to their staff. In the 21st century, employees’ satisfaction is imperative, which in turn impacts performance. When employees are dissatisfied, there will be unimpressive performance and high attrition rates.
Background of the Organization
The InterSmart Corporation will be a fully owned InterSmart’s Foundation subsidiary and it will coordinate and integrate the provision of internet-related services like the InterSmart web browser through worldwide open-source community developers. In its business of providing internet-related services, the company will hire the best talents to ensure it ranks ahead of its competitors. Therefore, InterSmart Corporation will offer high-quality services to gain a competitive advantage. To attain a competitive edge, the Corporation will hire the best talents and offer them competitive salaries, perks, and benefits.
Comparison/Contrast of Companies in the Information Technology Industry
Basic Salary for Engineers
For several years, Google has been ranked high due to its attractive salaries, perks, and benefits, which make working with the company satisfying. Google offers IT professionals big fat checks, making it the preferred firm by engineers. The company offers its engineers an average basic salary of $128,000, closely followed by Facebook at $120,000, and then Microsoft at $111,000 (Welch, 2014). Besides the attractive salary, Google engineers receive perks that make them the preferred employer in the Information Technology industry. The perks include free gourmet meals, vacations, and other benefits. Therefore, Google does everything possible towards keeping its employees satisfied and happy
In today’s working environment, companies should not just offer good salaries to attract and retain the best employees. Companies need to add several perks and benefits to make their packages attractive. Free bowling, food, bocce courts, legal advice, and haircuts are some employees’ benefits offered by Google. On the other hand, Microsoft offers good perks as well as provide several benefits such as annual fitness subsidies and onsite services like dry cleaning, company store, oil change, and al fresco dining. Facebook offers its employees vacation days, free meals, the option of working from home, and a relocation package among others.
CompanyGoogleFacebookMicrosoftPerks and benefitsFree gourmet meals
Free cooking classes
Free gym classes
The death benefit
20% play, 80% work policy
Discounts for attending events
Shuttle buses transport servicesVacation days
The option of working from home
Health insuranceAnnual fitness subsidies
Health insurance plans
Employees look for benefits alongside the basic salary. If a company hires the best, then it should offer its employees competitive benefits. Among these benefits, employees consider health benefits as crucial. Firms should offer medical insurance, retirement plans, disability plans among other benefits. Besides, employees consider paid leaves and supplemental salaries important. Other perks deemed important by employees are paid overtime, child care, and free meals. Thus, for companies to be considered good employers, they should offer these benefits, which help in the attraction and retention of the best talents (Entrepreneur, n.d.).
Job satisfaction is a crucial element in the recruitment, retention, and engagement of employees. Lest the staff are well compensated for their industry through additional perks and benefits, their satisfaction and performance decline. The perks and benefits should be in tandem with employees’ expectations as well as the industry patterns. Salaries are not sufficient to ensure employees’ satisfaction and engagement (Lipman, 2013).
Gallup’s data indicates that 52% of employees are disengaged, 30% are engaged, while 18% are actively disengaged. From these recent findings, it is indicative that 70% of United States employees are ‘actively disengaged’ or ‘not engaged’ and emotionally detached from their jobs and unlikely to be productive. Besides, according to Gallup estimates, the actively disengaged workers cost the United States $450 billion - $550 billion annually in terms of lost productivity (Gallup, 2014).
Proposal for Benefits
Herzberg’s findings indicated that some features of a certain job are related to job dissatisfaction, while others are linked to job satisfaction. These are:
Satisfying FactorsDissatisfying FactorsRecognitionSupervisionAchievementCompany policiesWork itselfRelationship with peers and supervisorsResponsibilityWork conditionsGrowthStatusAdvancementSalarySecurity
The features linked to job dissatisfaction are known as hygiene factors. Satisfying these factors means that employees will not have dissatisfaction although they will not have satisfaction. To motivate its employees, InterSmart will focus on the satisfaction factors such as responsibility, recognition, and achievement. To apply this theory, InterSmart will utilize a two-stage procedure to motivate employees. First, it will dissatisfaction and help them attain satisfaction (MindTools, n.d.).
To eliminate job dissatisfaction, InterSmart will eliminate hygiene factors through:
Applying good and supportive company policies,
Offering non-intrusive and effective supervision,
Forming and supporting the culture of dignity and respect for all m
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