Compensation And Recognition

Running head: COURSEWORK 1

Compensation and Recognition

Student’s name:

Institutional Affiliation:

COURSEWORK 2

Introduction

Employees are significant resources through which all goals of an organization are

achieved. Employee’s job satisfaction has a substantial impact on commitment with their job and

the overall performance of a team. Compensation practices associated with job satisfaction have

been used by various private and public sectors. The compensation benefits package includes

insurances, allowances, vacation, education, etc. Every company has a unique compensation plan

for its employees, and it is important to know how they view the current schemes. This study

focuses on the response of various workers to their job satisfaction and benefit schemes.

Method

Use of questionnaires

Participants

Three respondents from different level in the organization

Results

During the assessment of the degree of job satisfaction and benefits package, three

workers from different levels were interviewed through questionnaires. The questionnaires

contained twelve questions assessing the opinion of workers on their current job status. The

responses were rated using Likert scale method; the strongly agree to 5 points, somehow agree 4,

neither agree nor disagree 3, somehow disagree 2, and strongly disagree 1 point.

Questions

Person 1 (low

rank)

Person 2

(average rank)

Person 3(high

rank)

COURSEWORK 3

Table 1 shows responses from three employees about job satisfaction and benefit schemes

Critique

After interviewing the respondents of different levels, I realized that there were some

areas that all the workers were fully satisfied. In some areas, the respondents had varied

opinions; thus it was necessary to make review to improve the performance of the company. I

learned that all the respondents were satisfied with their jobs. All the three respondents

confirmed that the job utilizes their skills and expertise. The average results of company

flexibility pertaining family matters showed that the organization was not intensively committed

to them. None of the three respondents confirmed satisfaction on family responsibilities. The

people interviewed said that they were satisfied with the information provided by the

management on what is going to be done in your department.

Out of the three respondents, two were somewhat agreeing with the fact that they are

involved in decision-making process. However, one person complained about the lack of

consideration of his contribution towards decision making of the company. It implies that the

company valued decisions of some people that the others. Since the interviewed people came

from different departments, we draw the assumption that some departments neglect their

members.

Majority of the respondents said that they did not experience personal development such

as skill enhancement and gaining expertise on different jobs. The respondents' opinion implies

COURSEWORK 4

that the company did not allow workers to get exposed to other fields apart from their usual

routine. It is only one person who strongly agreed with his job satisfaction. According to the

responses of the people regarding the appreciation of their efforts, the majority said that their

efforts were not appreciated fairly. Therefore, one can infer that the company was biased

regarding efforts appreciation. The three people said that the company had good pension plans.

Majority of the interviewees said that they were not satisfied with the vacation plan of the

company. The response of the three people showed that the organization had paid attention to

insurance and health of its employees. According to the employees, the company had a weak

system for catering the elderly. The interviewee said that the company did not appreciate new

interventions from the employees.

The responses from the employees showed that there are some areas which needed more

improvements than others. The results show that the company needs to consider all employees as

equal as opposed to the current situation. Every worker is essential to the organization and

therefore needs to be treated equally for the company to succeed.

Benefits and rewards given to employees lead to improved personal productivity. When

employees receive bonuses and benefits, they enjoy working and therefore focus more on the

assigned tasks. Rewards and benefits enhance teamwork among employees (Why employee

recognition is so important, n.d.). Workers increase their loyalty to the company hence continue

offering their services without thinking of alternatives places of work. The firm enjoys minimal

losses of workers since they are satisfied with the organization. Benefits and rewards have a

significant impact on the level of employee’s satisfaction.

COURSEWORK 5

The most important benefit and rewards received by the employees of the employer

include health care, retirement benefits and paid time off. The benefits mentioned above can

attract the employees to the company since they provide them with satisfaction. I would

recommend the organization to keep up the excellent work of providing the employees with

health insurance plan. To make sure that the employees find job satisfaction in the company,

improving some areas are necessary. For instance, the organization needs to review the way they

cater for the elderly to increase job satisfaction of the employees.

Compensation can be defined as the financial and non-financial rewards assigned to a

person in return for the services they have offered to an organization. Payment is usually given

inform of wages and salaries. Both internal and external factors influence employees'

compensation. Internal factors that affect workers compensation are found within the

organization. The internal factors affecting employees’ compensation are discussed below.

Company's ability to pay is the first factor which influences the employees'

compensation. Big companies offer a high amount of salaries to its workers since they generate

huge profits. On the other hand, small organizations maintain their payment up to the level of

their competitors and sometimes pay below the recommended wages and salaries. The other

factor that affects compensation of an organization is the strategy of the business. If the company

wants to outshine the competitors, there is a need to get more skilled workers and hence, they

pay higher compensations to maintain the employees (What are the Factors Affecting Employee

Compensation, 2016). On the other hand, a company which needs to keep smooth running and

can cope with the available workers offer relatively lower salaries.

COURSEWORK 6

Job assessment and performance appraisal is the other factor, which determines the

amount of salary provided to the employees. The company offers different salaries depending on

the tasks assigned to the workers. Job appraisal enables the employee to receive extra pay based

on his or her performance. Employees also influence the compensation offered to them by the

company. Good performers are likely to attract higher payments than the others. The experience

of a person has in particular field enhances their productivity.

There are several external factors which affect the amount of salaries and wages offered

to the employees in an organization. The labor market has an impact on the salaries and rewards

given to employees by a company. There is low compensation if the labor supply exceeds the

demand. In case there is an insufficient supply of labor, a high salary is fixed. The current

payment in the job market also influences the amount of cash and other benefits given to the

workers. Increase in production of the company leads to increased compensation. Salaries and

wages vary according to the cost of living.

Strong labor unions have a significant influence on the compensation plan for the

workers. Labor union dictates the amount money paid to the workers in case the work is risky

and also if the demand is high and less supply of labor. Another factor which influences workers

compensation is the labor laws. Labor laws are put in place by the government to protect the

workers from being exploited by the employers.

PART B

For a company to ensure goods job satisfaction to its employees, it is necessary to come

up with compensation philosophy. This philosophy is designed after considering various factors

which affect the compensation of employees. Philosophy compensation enables the managers to

COURSEWORK 7

set standard compensations offered to the employees. A consistent philosophy helps the

managers to create a strong base for both the employees and the company.

Human resource manager supervises policies, processes, and compliance regarding the

workers for their company. They also ensure that human resources duties comply with the state,

local, and federal laws in addition to bringing about and inspecting programs related to the

benefits of workers. The human resource manager also oversees flexible job system, insurance

program, open enrollment program, maternity leave, and vacation benefits. Human resource

managers are involved in potential policy recommendations and changes to ensure that the

company provides a competitive remunerations package to its employees. Managers take part in

implementing any approved change in an organization. Another task of human resource

managers is to ensure a conducive working environment for the employees. For a person to

qualify as a human resource manager, they should have a minimum of bachelor's degree in

relevant area. Additional leadership skills needed by human resource managers are outstanding

leadership skills, problem-solving, and ability to multitasking.

According to the survey by Salaries (n.d.), the salary range for HR manager is $44,847 -

$92,180. This scale was used in designing a remuneration package for HR manager. After

evaluating the factors that affect the compensation of employees in an organization, it was found

that the most appropriate salary for the HR manager is $78,000, which is the 75th percentile of

the salary range.

PART C

Excellent salaries and wages, benefits and rewards are essential in every company

because they have various impacts on the performance of a given society. Rewards and Benefit

COURSEWORK 8

schemes ensure employees efforts and sacrifices of employees are recognized and compensated.

Rewards and benefits motivate the employees to put more work in their daily activities which in

turn increases the productivity of a company. A company which rewards its workers has a

likelihood of maintaining its workers. Better compensation and incentive packages attract more

people to the company. These benefit plans also draw curiosity for new positions in an

organization. Benefits plans include bonuses, commission, profit sharing, pension, life insurance,

company cars, dental treatments, vouchers and medical insurance. The table below shows the

benefit and rewards to be given to HR manager.

component

Amount per

year($)

percen

Total compensation

97,500

100

Wages and salary

78,000

Total benefits

19500

Vacation

Life insurance

292.5

195

1.5

sick

390

2.0

Supplemental

pay

97.5

0.5

Nonproduction

bonuses

390

2.0

Retirements and

saving

585

Social security

195

Medical insurance

487.5

2.5

Dental plans

487.5

2.5

life

195

Commuting

allowance

585

House allowance

2925

Table 2

The above illustration shows compensation mandatory for the HR manager. A benefit that

is not compulsory is a company car. The total annual budget for the employees is $97,500.

COURSEWORK 9

Summing up it is important to say that the study was successful in broadening the

understanding of compensation structures, enabling one to recognize employees efforts and

designing working environment where the employees get job satisfaction.

COURSEWORK 10

References

What are the Factors Affecting Employee Compensation? Business Jargons. (2016, June 13).

Retrieved from http://businessjargons.com/factors-affecting-employee-

compensation.html

Why employee recognition is so important. (n.d.). Retrieved from

http://www.cuttingedgepr.com/articles/emprecog_so_important.asp

Salaries. (n.d.). Retrieved from https://www.indeed.com/salaries/Human-

Resources-Manager-Salaries

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