• Compensation and Benefits
Competitive Compensation and Benefit Offerings
Compensation and benefit offerings frequently need to be reviewed to ensure they are competitive within the marketplace.
The accounting and finance department has just released the year-end financial statements. Based on the company’s increase in profits, there will be an increase in compensation and benefits for the upcoming year. Marcos is the compensation and benefits specialist within Suzy’s team. He will conduct industry-specific benchmarking activities to ensure that employees are receiving competitive compensation. Marcos will also analyze possible new benefit offerings that would be positively received by employees. Marcos would also help determine which benefit offerings would be made available to which level or category of employees and how these benefits are communicated. There are also many laws and regulations that impact compensation and benefits that Marcos must be aware of, which he will need to ensure are understood across the organization.
A good job is more than just a paycheck. A good job fosters independence and discipline, and contributes to the health of the community. A good job is a means to provide for the health and welfare of your family, to own a home, and save for retirement.
—James H. Douglas, Jr.
This week, you will continue to look at ways in which organizations can maximize the ROI in human capital by exploring total compensation and effective employee communication of plans, recognition, and rewards. All of these HR components play a critical role in motivating employees to reach their maximum potential.
Compensation is a combination of several elements, and a total compensation package typically includes base pay and benefits that are deemed appropriate to the environment in which a company or an organization operates. Understanding the right balance begins with understanding a company’s competitive position in the market and its ability to pay. Structuring the right package is most often the responsibility of HR.
Finding a base wage is a good beginning; however, in a competitive business climate, pay is not the only factor to consider. Benefits and incentives can sometimes be the winning edge in attracting and retaining the best staff for your venture. This week, you will explore the additional, not always well-communicated, side of compensation: benefits, incentives, perks, and intangible rewards in the employment contract.
The task of calculating the total compensation package is not always obvious. Occasionally, the best benefit may be invisible and may cost nothing. This week pushes you to think creatively about rewarding work.
Structuring and communicating a total compensation package that meets regulatory requirements and the needs of the workforce requires a delicate balancing act between what is required and what will contribute to an effective relationship between employer, employee, and the community in which the company operates.
Reference
Brainy Quote. (n.d.). James H. Douglas, Jr. quotes. https://www.brainyquote.com/authors/james_h_douglas_jr
• Assignment Overview
In this assignment, you will write a 2-3 page compensation and benefits package for a new expatriate position working for either Java Corp or an organization with which you are familiar.
• What You Need to Know
Compensation
These resources take you through determining a competitive compensation package, compensation trends, benefit changes for today’s work environment, and the most well-received employee benefits.
• Beers, L. F. (n.d.). 5 compensation trends to watch in 2021. JER HR Group. https://jerhrgroup.com/5-compensation-trends-to-watch-in-2021/
• Carver, C. (2020). Employee compensation: Everything you need to know. Ashtron Solutions. https://astronsolutions.net/employee-compensation/
• Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2020). Fundamentals of human resource management (8th ed.). McGraw-Hill.
o Chapter 14, “Providing Employee Benefits,” 409–443.
o Chapter 13, “Recognizing Employee Contributions With Pay,” pages 382–408.
o Chapter 12, “Establishing a Pay Structure,” pages 354–381.
Benefits
• Planning 2021 benefits changes for the COVID-19 era: Coverage decisions must be made soon, despite pandemic unknowns. (2020, July 21). HR News.
• Stevens, L. (2020, July 8). Top 10 employee benefits for 2021. Best Money Moves. https://bestmoneymoves.com/blog/2020/07/08/top-10-employee-benefits-for-2021/
As you know, the total cost of living varies greatly across the United States. In addition, specific types of expenses can vary greatly in two locations. Think of downtown parking in Manhattan, New York City, versus rural living in Oklahoma. There are salary calculators online that compare the cost of living in different cities, but they cannot account for everything.
• Bankrate. (n.d.). Cost of living calculator. http://www.bankrate.com/calculators/savings/moving-cost-of-living-calculator.aspx
o In this calculator, enter two cities and a salary level to compare. You will use the information from the calculator in this week’s discussion.
o Note: You may use this website or another one of your own choosing.
• WorldatWork. (n.d.). What is total rewards? https://www.worldatwork.org/total-rewards-model/
• Total Rewards Best Practices.
o This piece looks at all the tools employers use to attract, motivate, and retain employees in the competitive work world.
• Compensation and Benefits.
o Check your understanding of compensation and benefits in this formative activity. This is for your own self-assessment.
• Write Your Discussion Post
• Assignment Instructions
COMPENSATION AND BENEFITS
Scenario
For this assignment, choose either option 1 or 2. You do not need to do both. You will apply one of these scenarios in the instructions below. Both options will be graded using the same scoring guide.
Option 1
You are the new HR manager for Java Corp, a domestic cold coffee and tea company. Java Corp is opening a new office in London, England. You are planning on filling one executive level position with a U.S. citizen. In the scenario, the employee filling the role can either be an existing one or a new hire. The term of the initial assignment is two years. Design a compensation package for this position as the new HR manager.
Instructions
Create a compensation package for a new expatriate position. Include the following:
Pay or Salary
In this part:
• Describe key factors and decisions to make regarding base pay. Specifically, discuss how base pay would be determined, what factors influence base pay, and in what way. Note: You do not need to indicate exact salary figures for this assignment.
• Analyze pay considerations specific to expatriate positions. Consider foreign service premium, incentive pay, hardship allowance, mobility premium, and the like.
Benefits
In this part:
• Analyze legally required benefits for an employee. Include social security, Medicare, federal and state unemployment, and worker’s compensation. Also, discuss any legally required benefits that may be different in England compared to United States.
• Analyze standard benefit offerings. Include health insurance, paid time off, employee assistance programs, et cetera. Also, discuss factors that might influence these offerings such as company size, role of the employee, company location, et cetera.
• Analyze the appropriateness of offering additional benefits or resources to employees facing an overseas work assignment that would ease their transition. These types of benefits could include relocation assistance, home leave reimbursement, spousal support for finding work, cultural or language training, among others.
Additional Requirements
Your assignment should also meet the following requirements:
• Length: 2-3 typed, double-spaced pages, plus a reference page.
• Written communication: Communicate in a manner that is scholarly and professional. Your writing should be:
o Concise and logically organized.
o Free of errors in grammar and mechanics.
• Validation and support: Use a minimum of four relevant and credible scholarly or professional resources such as the Wall Street Journal to support your work.
• APA format: Format all citations and references in accordance with current APA guidelines. Refer to the Evidence and APA Campus page for guidance.
