Legal compliance of pay and benefit programs is extremely important to ensure that the compensation and benefits offered in an organization are in compliance with the law; if not, this could cost the company a great deal of resources and money. It is the human resource manager’s responsibility to ensure that the compensation and benefits programs always comply with changing federal and state laws.
Benefiting administration is a strong part of the employee value propositions. Compare three organizations and how these organizations have demonstrated best practices in offering employee benefits. Additionally, document how the following considerations impact cost effective and value added benefit administration.
There are a number of laws and regulations covering many aspects of compensation administration. In addition, benefit programs and their offerings are critical in recruiting, motivating, and retaining employees. HRM must carefully address employee benefit programs to ensure that these specific employee needs are met.
1. Describe how these organizations handle the changing legal and regulatory environment to ensure that pay and benefit programs meet legal requirements, whether these are developed by state or federal agencies.
2. Describe how HRM can maintain cost effective pay and benefit programs within this environment in which laws and regulations seem to change on a regular basis.
3. Examine the current environment and determine future trends which may challenge organizations in designing and maintaining effective pay and benefit programs. In particular, assess the trends and challenges facing employee benefits.
4. Discuss whether organizations can anticipate these changes and ensure that strategic objectives are not significantly altered by these changes.
Legal compliance of both pay and benefits is considered to be an important parameter in organization. It helps in ensuring the fact that compensation and benefits are in compliance with the law (Armstrong & Taylor, 2014). If it is not in compliance, then it can easily result in huge cost to organization for dealing with resource and money. It is the duty of human resource manager to check that both compensation and benefits adjust with ever-changing federal and laws. Both compensation and benefits are considered to be key factors in retention and recruitment of best talent for job in various industry (Stone & Deadrick, 2015). Employer understands the fact that it is considered to be tough to look and easily keep good talent. There is large number of organization which tends to offer competitive benefits packages.
In the coming pages of the report, a comparison has been provided with respect to three organizations that are Medifast, NutriSystem, and InterDigital. In addition, organization has discussed certain number of practices in providing employee benefits. After that certain method has been discussed in details which are needed for understanding legal and regulatory for ensuring pay and benefits. A list of steps has been discussed which can be used for maintaining effective pay and benefits program.
All the given organization that is Medifast, NutriSystem and InterDigital make use of step for handling the change in legal and regulatory environment. It is mainly done so that these organizations can ensure pay and benefits program for meeting legal needs (Brewster, Chung, & Sparrow, 2016). HR function is considered to be center of employer’s effort which is needed for identifying, hiring and retaining large number of people. Theses organization focus on executing a large number of strategy along with achievement of goals. HR function is considered to be key player within organization which can easily comply with the given structure. There is large number of laws and regulation which is needed for governing employment relationship so that HR professional can easily understand and navigate in easy way. It is mainly done so that organization can avoid fines and another kind of penalties. It can easily bring huge amount of damage to the overall reputation of the organization (Gupta & Shaw, 2014). Some of the common laws adopted by these three organization are fair labor standard ACT that focuses on minimum amount of wage and right for overtime pay for workers. Federal Laws focus on prohibiting employers in considering different aspects like race, gender, and age. This law comes into picture for understanding hiring and firing based decision (Nankervis et al., 2016). Apart from these, certain setting for terms and condition for employment that is Family and Medical Leave Act (FMLA) focus on granting rights to employees so that right decision can be taken up within twelve days of unpaid leave.
Human resource department of these three organization is mainly used for carrying out large number of function. It is the duty of human resource department to look for the payroll of employees benefits and health administration (Collings, Wood & Szamosi, 2018). Human Resource department focuses on employee payroll and tax filing. It focuses on employee benefit and their health administration. Human resource focus on managing large number of things like legal compliance, maintaining files and records. There large number of function for human resource department which is considered to be comprehensive and complex in nature. There are large number of business all around the globe which can outsource HR function for different advantages for benefit of the bottom line of three organizations that are Medifast, NutriSystem, and InterDigital. Outsourcing is a well-known technique that helps in reducing the overall cost in maintaining non-revenue generation of back-office expenditure (Voegtlin & Greenwood, 2016). A fully function human resource department mainly requires some additional office space and highly trained and experienced staff. There is large number of business which can find it cost-effective for easy outsourcing of HR functions. It can easily expand so that larger location can be met within the space needed for another kind of department. There is large number of outsourcing cost which can be reduced when theses organization require warrant.
Methods to handle changing pay and benefits for meeting requirement
Human resource department faces challenges in aligning strategy and action for creating an organization known as employee of choice (Brewster et al., 2016). An employer of choice is a well-known platform where people tend to work because the organization comes up leadership values. A talented and positive work environment and competitive compensation can easily provide large number of benefits. The human resource department of this organization encounter large number of problems like
Employee Retention: Retention of employee is considered to be biggest issues encountered by employer. Retention of employee is considered to be as one biggest issue which is encountered by Human Resource department tends to struggle. Best employees of three organizations that is Medifast, NutriSystem and InterDigital are considered to be difficult to retain (Jackson, Schuler & Jiang, 2014). Without any strategic plan, various aspects like employee satisfaction, compensation and benefits tend to affect various aspects like employee skills and aptitude. It tends to address some aspects like high-performing workers which is needed by organization like a stepping stone for career path.
Pay and Benefits program: Human resource department and financial department focus on the fact that how to make budget for both compensation and benefit of employee. It can be defined as a strategic decision which can be taken by organization which helps in analyzing application and employee perception (Stone et al.,2015). Employers like Medifast, NutriSystem and InterDigital tend to pay competitive wages and standard benefits. It mainly focuses on high wages and minimum benefits and still, it tends to affect. It mainly emphasizes competitive wages and providing benefit packages. There is large number of challenges encountered HR for gaining executive-level support which is needed for the value of organization.
Strategy is a well-known term which is needed for achieving goals and objectives in business of these three organization that is Medifast, NutriSystem, and InterDigital. Strategy decision tends to affect the business line of an organization (Gupta & Shaw, 2014). It addresses on large number of things when this organization makes changes in the strategy. The organization can easily experience huge number of common positive and negative experiences at the time of strategic transition. Changing strategy can easily have huge number of negative effects. New kind of strategic decision can easily help the organization for adopting changes in both legal environment and marketplace (Nankervis et al., 2016). New kind of strategy can easily help the organization in performing most cost-effective way. It can easily help them to enter into profit industry and market industry. Any kind of changes of strategy can easily result in organization to gain much faster growth rates.
From the above pages of the report, an idea has been provided with respect legal compliance for pay and benefit. It is needed for ensuring compensation and benefits which is offered in an organization that is compliance with the law. If the thing is not done in a proper way, then it can easily result in damage huge resources and money for the organization. It is mainly the duty of human resource manager for ensuring benefits and compensation programs. There is large number of future trends which can affect the organization in maintaining proper pay and benefits programs. It mainly focuses on certain number of changes and ensures the fact that strategic objectives are not altered by changes.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.
Brewster, C., Chung, C., & Sparrow, P. (2016). Globalizing human resource management. Routledge.
Brewster, C., Vernon, G., Sparrow, P., & Houldsworth, E. (2016). International human resource management. Kogan Page Publishers.
Collings, D. G., Wood, G. T., & Szamosi, L. T. (2018). Human resource management: A critical approach. In Human Resource Management (pp. 1-23). Routledge.
Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human resource management. The Academy of Management Annals, 8(1), 1-56.
Nankervis, A. R., Baird, M., Coffey, J., & Shields, J. (2016). Human resource management: strategy and practice. Cengage AU.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), 139-145.
Stone, D. L., Deadrick, D. L., Lukaszewski, K. M., & Johnson, R. (2015). The influence of technology on the future of human resource management. Human Resource Management Review, 25(2), 216-231.
Voegtlin, C., & Greenwood, M. (2016). Corporate social responsibility and human resource management: A systematic review and conceptual analysis. Human Resource Management Review, 26(3), 181-197.
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