Crafting a Compensation and Benefits Plan Week 4 Introduction In the present day business context, companies need to work effectively for gaining long-term sustainability in this competitive landscape. It is worth mentioning that the role of employees in ensuring effective functioning of companies is quite prominent. However, in order to motivate the employees towards their work and ensure their maximum loyalty and dedication, appropriate and attractive reward and compensation packages must be developed (Gallup, 2013). Contextually, this particular assignment tends to create a compensation and benefits plan for an organization operating in welding industry. Background of the Company A particular company has been taken into concern, which possesses a keen interest towards operating in welding industry.
Owing to the raising level of competitiveness in this particular industry, a proper set of employees need to be recruited so that the overall business activities can be conducted with better efficacy. Contextually, recruitment is duly considered to be one of the prime aspects, which contribute in attaining the above stated objective. However, in order to develop the motivation and continuous dedication of the employees towards their respective works, proper compensation and reward plan is required to be developed.
This will further ensure long-term success of the developed business. Compare/Contrast of Industry In this segment, three particular companies i. e. Joe’s Welding and Machine, Paragon Pipe Fitting and Acme Tool and Engineering have been taken into concern for acquiring a brief idea about the way based on which the above described company will be able to develop an effective and efficient set of compensation and reward plan for its business units. Notably, the analysis of compensation and benefit packages can be conducted based on several key components that entail salary, medical along with dental benefits, vision as well as retirement benefits, life insurance benefits and vacations among others.
The comparison of the aforesaid three companies in terms of their respective compensation and benefits plan has been provided hereunder. Benefits Joe’s Welding and Machine Paragon Pipe Fitting Acme Tool and Engineering Salary $40, 000 $50, 000 $55, 000 Medical Yes Yes Yes Dental Yes No No Vision Yes No No Retirement Yes No No Life Insurance Yes Yes No Vacation 40 hours 48 hours 80 hours Notably, the above table depicts the comparison of the compensation plan of three companies operating in one similar sector.
As per the above framed tabular representation, it has been quite apparent that the three companies operate differently with regards to provide benefits to their respective employees. This can be justified with reference to the fact that Acme Tool and Engineering is providing highest salary to its employees, while Joe’s Welding and Machine is much concentrated towards providing non-monetary benefits such as medical, dental and retirement benefits among others. On the other hand, Paragon Pipe Fitting is observed to deliver a mid-range salary to the employees along with the deliverance of few of the basic benefits.
However, considering the fact that Acme Tool and Engineering is providing more salary to the employees along with better vacation benefits, applicants will be more concentrated towards accepting the employment contract of this company. Thus, the plan of Acme Tool and Engineering can be duly considered while developing the compensation and benefit plans of the created company mentioned above. Engagement It is strongly believed that the notion of employee engagement is directly relevant with the approach of the business units towards compensating the employees.
This aspect can also be related in the background of motivating the employees in any workplace. Conceptually, the notion of employee engagement primarily refers to the condition wherein employees reveal their utmost interest towards conducting varied operational activities efficiently for accomplishing predetermined business targets (Markos & Sridevi, 2010). It can be apparently noted that there exist several approaches based on the following of which companies operating in any sector can ensure utmost engagement of the employees. The first approach in this regard is noted to be the satisfaction of the employees towards their respective job roles along with responsibilities (Desai et al. , 2010).
It can be ascertained that a huge percentage of employees provide their psychological commitment towards work based on the satisfaction level that they attain from their respective job roles. Involving employees in decision-making procedure and operational processes would also ensure maximum employees’ engagement within any particular business at large (Parkes, 2014). Apart from the above discussed aspect, the idea of performance appraisal is also regarded as an important part towards ensuring maximum engagement of the employees in the workplace.
Praising the contribution made by the employees towards the business through rewarding, compensating and providing extra benefits will not only motivate them to conduct their respective works with utmost dedication, but will also augment their engagement level towards the business at large. Proposal for Benefits The benefits for the created business can be ascertained in the following form: Ensuring maximum engagement of the employees towards work Enhancing productivity of the employees through motivating them for their positive contribution made towards the organization Creating organizational policies in accordance with the goals of the business as well as the well being of the employees altogether Ensuring continuous personal and professional growth of the employees in workplace Recognizing the performance of the employees and likewise rewarding the same appropriately through providing proper compensation packages and benefits Notably, it can be seen that employees in the workplace must be managed properly to generate best possible outcomes and attain desired business or operational targets.
It is worth mentioning in this similar context that satisfied and motivated employees are deemed to work with utmost efficacy and dedication towards fulfilling their job roles as well as responsibilities that can again prove to be quite beneficial for the overall business. In this similar context, considering the theory of Fredrick Herzberg would be vital. As per the theory, satisfaction of the employees can be gained from their achievement, recognition as well as continuous growth. Whereas, dissatisfaction of the employees can arise from the policies frame by businesses, relationship with the management and the prevalence of working conditions among others (Ball, 2003).
Thus, the proposal benefit can be ascertained based on the principles of Fredrick Herzberg’s theory. Conclusion From the above analysis and discussion, it can be ascertained that employee motivation along with engagement is directly related to the satisfaction level of the personnel in any workplace. Employee motivation, which ensures the deliverance of considerable benefits to the overall business, could be raised with the design and effective implementation of proper compensation along with benefit plans. References Ball, J.
(2003). Understanding Herzbergs motivation theory. Chinaacc, 1-2. Desai, M., Majumdar, B., & Prabhu, G. P. (2010). A study on employee engagement in two Indian businesses. Asian Journal of Management Research, 81-97. Gallup. (2013). State of the American workplace. Retrieved from http: //www. michaeljbeck. com/documents/State%20of%20the%20American%20Workplace%20Report%202013.pdf Markos, S., & Sridevi, M.
S. (2010). Employee engagement: the key to improving performance. International Journal of Business and Management, 5(12), 89-96. Parkes, L. (2014). Employee engagement. Infosys, 1-8.