Homework Question on Human Resource Consultant
Assume the role of a highly regarded human resource consultant hired to review, analyze, and revise the compensation and benefit system utilized by your city’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.)
- Eight scholarly references in addition to the course text.
- Course text: Weathington, B. L. & Weathington, J. G. (2016). Compensation and benefits: Aligning rewards with strategy [Electronic version].
Homework Answer on Human Resource Consultant
Holland enterprise is on a new strategic direction, to attract and retain the most talented employees and to reduce turn over as a result of the market dynamics. Pay is a powerful Human resource management tool for recruitment, retention; motivation and reward forwork done and thus must be given great consideration if a firm wants to remain competitive in its industry (Amah, Nwuche& Chukwuigwe, 2013).Holland Enterprises employs 3,500 employees, but since 2010 has lost twenty-five percent of its staff. Exit interviews that have been conducted in the organization reveal that the reason why majority of workers have left is because of anunfair compensation strategy.
Those who have resigned feel that the compensation package of the firm is unfair and does not reflect the market dynamics. As a human resource consultant, I will recommend a new compensation plan for Holland Enterprises which will have several components of compensation and benefit system. This will attract the best talents to the company and motivate employees to be productive thus reducing the loss of staff. A compensation plan collectively refers to all the components in which the compensation is paid, for instance, bonuses, salary increases and incentives(Henneman, 2011).
The essay presents a revised compensation and benefits strategy to Holland enterprises, describes how effective compensation and benefit system contributes to organizational effectiveness, and explains the principles components of the revised compensation system and provides a clear and convincing argument to the already skeptical top managers of Holland enterprises to increase their compensation and benefit expenses.