country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Remuneration And Benefit Strategy

tag 0 Download11 Pages / 2,578 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Questions:

1.External Factors that Impact Remuneration and Benefit Strategy.

2. Devise a New Remuneration and Benefits Structure for the Position of Retail Store Manager within the Organisation .

3.Prepare a Briefing Paper to provide Information about the Incentive Plan of your Proposition.
 
 

Answers:

1.Three External Factors that Impact Remuneration and Benefit Strategy

Remuneration and benefits are both monetary and non-monetary rewards that are provided to the employees for their performance in an organization. According to Noe et al., (2014), there are several internal and external factors that affect employee compensation. Three major external factors are Inflation rate, Cost of Living and Labor Unions.

Inflation: Inflation means increase in the prices of commodities and decrease in value of the money. As a result of inflation, several things get affected which are raising prices, fall in the value of currency in foreign market, increased amount of tax by government and stagnation in the enlargement of economy (Gupta & Shaw, 2014). Inflation also affects remuneration and benefit strategy. For example, in the year of 2012, due to inflation, Indian companies increased salary of the employees up to 12% to 27% than the previous year.

Cost of Living: The index of cost of living also influences remuneration and benefit strategy of an organization (Noe et al., 2014). If general price level and consumer price level index increases or decreases, the wage, salary and compensation strategy will change accordingly.

Labor Unions: If labor union of an organization is powerful, then it will influence remuneration and benefit strategy of that organization. Labor unions are established in the case, where demand is high and amount of labor supply is low. In these situations, employees can demand for more money. On the other hand, non-unionized organizations enjoy more amount of freedom with respect to the fixation of the compensation plan.

Three types of Incentive Program

Employee recognition: In a survey conducted by Michael C. Fina Recognition, nearly 300 human resource professionals confirmed that workers exceedingly value office gratitude programs that actually charge very little to execute. Nearly three quarters of the participants also said that their organizations are seriously thinking to develop their recognition programs inside the next year. As mentioned by Mone and London, (2014), some most dominant recognition initiatives are performance awards (33 percent), service-anniversary awards (20 percent) and e-cards (10 percent).

Small financial incentives: According to the reports of America’s 2015 place of work reimbursement Report, nearly 70 percent employers stated that incentives are useful for their organization. However, it is also true that only few employees actually offer or consider offering solutions that provides benefits to the employees financially (Gomez-Mejia et al., 2014). According to that same report, the most famous financial incentives are gift cards or bonuses (29 percent), a point curriculum for discounts or cash (14 percent), discounts in terms of health indemnity and other goods (11 percent) and raffles (11 percent).

 


Worker Perk Program: Recently an employee-verification organization named as SheerID conducted a survey for Google. The survey was done with more than 500 respondents and the topic was worker reduction practice inside companies. As per the results, it was found that only 20 percent of employees use their worker price cut program. However, if those programs were easy to avail, 46 percent employees would utilize them regularly. According to (Bloom & Trahan, 2016), some popular employee discounts that most of the organizations use are entertainment or travel (65 percent), Restaurants (55 percent), Computer or electronics products (50 percent), subscriptions (39 percent), health or beauty products (29 percent) and office supplies (21 percent) (Huang et al., 2016).

Key Considerations while Developing Remuneration and benefit Strategy

Budget Allocation

Remuneration and benefit strategy must include company’s approach to assign recompense dollars into income and reimbursement. The organization will also have to decide how much recompense financial plan will be spent on wages and how much percentage will be spent on reimbursement and additional incentive programs.

Establishing Salary Ranges

Establishing salary ranges in extremely serious to make sure that worker pay is spirited with other orgaizations. According to Sparer and Dennerlein (2013), to become spirited, it is paramount to benchmark jobs inside the similar business and develop a pay configuration. Ranges for salary can be established within by executing investigation or using sites like salary.com and payscale.com. It will conclude standard wages in a scrupulous region.

Salary Audits

As the market alters regularly, it is significant to perform standard income audits to make sure that wages ranges reflect latest recompense trends in an business.

 

Benefit Package

Number companies are nowadays using benefit packages with the salary to attract new employees and retain existing ones (O'connor & Klein, 2013). Therefore, proper health, retirement, tuition reimbursement along with other benefits will motivate current employees to stay with the organization.

Performance Management System

Performance management systems such as development of yearly goals and yearly performance appraisals can be included to make sure employees are meeting objectives of the organization (Campbell et al., 2012).

Legal Compliance

A proper compensation strategy will integrate legal requirements to make sure that the company is in compliance with all federal laws and state laws.

Structured Administration

It is important to establish annual review method and raise method timeline to make sure all the areas are properly managed and compensation management is a success (Cristiani & Peiró, 2015).

Industrial Agreement

All working Australians are covered by industrial or enterprise agreement. On July 1, 2009, several types of combined and personage administrative center agreements under the preceding office relation systems were replaced by a single kind of conformity that is enterprise agreement (Davila & Elvira 2015).

2.Proposal

After conducting a proper market research, it seems that the best remuneration and benefit strategy for our organization would be commissions, under the method “small financial benefits” plan. It is already mentioned that according to America’s Workplace Benefit Report, 70 percent employers have stated that financial incentives are working good for their organizations. Now in retail sector, in which our organization operates, the most important department is sales department (Davila et al., 2015). Employees of this department not only sales products but also communicate with the customers. As they directly communicate with the customers, they are responsible for developing good relationship with them. It will help or organization to attract new customers and improve profitability. For salespersons of our organization, commission would be the best idea.

 


The primary reason behind selecting commission is it is the most common and conventional way to encourage and reward salespersons for closing big deals or meeting organizational objectives. Another chief advantage of this system is it provides major incentives to salespersons and therefore; they work harder on behalf of the company. This system will be divided into different tiers. The lowest tier will offer them smaller amount of profit for making few sales (Jiang et al., 2012). However, they will receive higher amount as commission if they can make additional sale in a particular time frame. Currently, our organization can offer 5 percent commission to the employees for selling 150 products in a month. However, if they can sell additional products, then they will gain bonus 10 percent commission. It is expected that this method will boost the performance of our sales personnel (Morley et al., 2016). Therefore, this method is recommended as the new remuneration and benefit strategy for our company.

3.Introduction

For getting success, organization needs to attract as well as retain productive employees. A competitive incentive plan helps the organization to accomplish these objectives. Incentive plans help to motivate employees for exceeding expectations and business growth. These kinds of plan help to promote employee’s exceptional behavior during a specific period. Besides, these kind of business plans can also attract potential employees towards the organization along with encouraging the company loyalty (Ribeiro & Gomes, 2016). Nevertheless, incentive plans must consist of obtainable goals, which will hold employee morale, contributing towards successful plan. Every organization needs to implement incentive plan for empowering their staffs to perform better and achieve their performance goals, thereby achieving the overall goal of the organization or the business. There are several levels of incentive plans. For instance, incentive plan for low level employees would include people at bottom of the organization and first line supervisors.

The most common forms of Incentive Offerings in Organizations

Small Financial Incentives (what is it?) (Strengths)

Small financial incentives mean providing extra amount of money to the employees along with their regular salary for exceptional performance. Generally when employees over perform their duties or goals, then the organization provides such incentives to motivate them. This system’s advantages are its biggest strengths (Singh et al., 2013). This system not only helps to motivate employees, but also allows an organization to gain employee loyalty. Besides, it makes sure that an employee is satisfied with his job that in turn reduced employee turnover.

Employee Perk Program: (what is it?) (Strengths)

Employee perk programs help to attract employees, these programs does not contribute to the development of organizational culture, rather, these programs are additive and improve employee morale, thereby enhancing the chance of their retention in the organization. There are different kinds of perk programs, but the organization need to choose the appropriate one for implementing in the workplace. They need to focus on the perks, which are important for employees and culture (Tarique et al., 2015). The common perk programs include profit sharing, unlimited PTO, extra time off during holidays, gym and spa memberships, maternity and paternity leave more than suggested period by law, off site events, weekly entertainments, education subsidizing, provision of technological support (i.e. mobile, tablet, laptop), sports pass, community membership, club membership, medical insurance and free food.

Employee Recognition: (what is it?) (Strengths)

Employee recognition is referred to the acknowledgement of the effort of a team or an individual, who has been supported the organizational goals and values. It is one of the key non-monitory tools for employee retention. Recognizing the right person would motivate the recognized employee to perform according to the higher level needs, whereas, employees who do not receive the recognition would also be influenced to perform better to gain the recognition in future (Varma & Budhwar, 2013). It is important for several reasons, for instance, to improve employee morale, to enhance their loyalty, to make employees aware of their work for which they are valued, to increase employee motivation and retention as well as to help in building a supportive work environment. Organizations need to be a common practice in workplace and should not include any kind of discrimination or bias in selection. Effective employee recognition can be for both individual and group level, in either formal or informal manner. In this context, the formal initiative can be done on a yearly basis, whereas informal recognition can take place, when it is merited by the supervisor (Wood et al., 2014). However, the formal and informal recognition should be distinguished on the basis of employee’s status and organizational needs. Informal recognition can be provided at any time, for empowering the employee, which does not need formal documentation.

 

Explanation for Choosing Commission

Among several financial incentives, commission process is selected. There are several advantages of this method and that is why; this method is selected over others. Those advantages are hereby mentioned below.

It helps to motivate the salespersons to deliver high performances. If salespersons are only provided direct salary, most of them will have limited motivation to exceed basic expectations. However, if opportunity of earning through commission is provided, it will drive the sales persons to set more aggressive goals to work through issues and rejections. They will continuously seek new opportunities.

Thought a direct salary provides the steadiest income for workers, sales staffs who have worked on direct commission frequently welcome a higher level of definite profits and base pay. The steadiness of stability and incentive to execute at an elevated level has a nice balance of reimbursement from both direct wage and direct commission (Morley et al., 2016). The explanation is to present just adequate permanence that employees feel fulfilled with their basic monetary sanctuary but still have enthusiasm to sell more to be paid more.

Salespersons, in order to sale more products to gain commission will also develop positive relation with the consumers. It is another vital thing for business. Positive consumer relationship not only develops a base of loyal consumers, but also helps to attract new consumers (Davila & Elvira, 2015). Loyal consumers will automatically ask their friends and families to buy from the organization where they are getting welcomed by amicable salespersons.

However, there is one disadvantage of this method. It is possible that salespersons will mislead the consumers to make sales. It will hamper the brand image of the organization. Therefore, proper monitoring is required. It will indicate that salespersons are using proper ways to make more sales.

 

References

Bloom, D. E., & Trahan, J. T. (2016). Flexible benefits and employee choice: Highlights of the literature. Elsevier.

Campbell, BA, Coff, R & Kryscynski, D (2012), 'Rethinking sustained competitive advantage from human capital', Academy of Management Review, vol, 37, no. 3. pp. 376-95.

Cristiani, A. & Peiró, J.M., (2015). Human resource function strategic role & trade unions: exploring their impact on human resource management practices in Uruguayan firms. The International Journal of Human Resource Management, 26(3), pp.381-400.

Davila, A. & Elvira, M.M., (2015). 17. Human resource management in a kinship society: the case of Latin America. H&book of Human Resource Management in Emerging Markets, p.372.

Davila, A., Foster, G. & Jia, N., (2015). The valuation of management control systems in start-up companies: International field-based evidence. European Accounting Review, 24(2), pp.207-239.

Gomez-Mejia, L. R., Berrone, P., & Franco-Santos, M. (2014). Compensation and organizational performance: Theory, research, and practice. Routledge.

Gupta, N., & Shaw, J. D. (2014). Employee compensation: The neglected area of HRM research. Human Resource Management Review, 24(1), 1-4.

Huang, H., Mattke, S., Batorsky, B., Miles, J., Liu, H., & Taylor, E. (2016). Incentives, program configuration, and employee uptake of workplace wellness programs. Journal of Occupational and Environmental Medicine, 58(1), 30-34.

Jiang, K, Lepak, DP, Han, K, Hong, Y, Kim, A & Winkler, AL (2012), 'Clarifying the construct of human resource systems: Relating human resource management to employee performance,' Human Resource Management Review, vol. 22, pp.73-85.

Mone, E. M., & London, M. (2014). Employee engagement through effective performance management: A practical guide for managers. Routledge.

Morley, M.J., Heraty, N. & Michailova, S. eds., (2016). Managing human resources in Central & Eastern Europe. Routledge.

Noe, R. A., Wilk, S. L., Mullen, E. J., & Wanek, J. E. (2014). Employee Development: Issues in Construct Definition and Investigation ofAntecedents. Improving Training Effectiveness in WorkOrganizations, ed. JK Ford, SWJ Kozlowski, K. Kraiger, E. Salas, and MS Teachout (Mahwah, NJ: Lawrence Erlbaum, 1997), 153-189.

O'connor, R. M., & Klein, T. J. (2013). U.S. Patent Application No. 14/054,956.

Ribeiro, J.L. & Gomes, D., (2016). Other Organizational Perspectives on the Contribution of Human Resources Management to Organizational Performance. In Organizational Management (pp. 63-106). Palgrave Macmillan UK.

Singh, D., Singh Oberoi, J. & Singh Ahuja, I., (2013). An empirical investigation of dynamic capabilities in managing strategic flexibility in manufacturing organizations. Management Decision, 51(7), pp.1442-1461.

Sparer, E. H., & Dennerlein, J. T. (2013). Determining safety inspection thresholds for employee incentives programs on construction sites. Safety Science, 51(1), 77-84.

Tarique, I., Briscoe, D.R. & Schuler, R.S., (2015). International Human Resource Management: Policies & Practices for Multinational Enterprises. Routledge.

Varma, A. & Budhwar, P.S., (2013). Managing human resources in Asia-Pacific (Vol. 20). Routledge.

Wood, G., Brewster, C. & Brookes, M., (2014). Human resource management & the institutional perspective. Routledge.

Download Sample

Get 100% money back after download, simply upload your unique content* of similar no. of pages or more. We verify your content and once successfully verified 100% value credited to your wallet within 7 days.

Upload Unique Document

Document Under Evaluation

Get Credits into Your Wallet

*The content must not be available online or in our existing Database to qualify as unique.

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2018). Remuneration And Benefit Strategy. Retrieved from https://myassignmenthelp.com/free-samples/remuneration-and-benefit-strategy.

"Remuneration And Benefit Strategy." My Assignment Help, 2018, https://myassignmenthelp.com/free-samples/remuneration-and-benefit-strategy.

My Assignment Help (2018) Remuneration And Benefit Strategy [Online]. Available from: https://myassignmenthelp.com/free-samples/remuneration-and-benefit-strategy
[Accessed 02 July 2020].

My Assignment Help. 'Remuneration And Benefit Strategy' (My Assignment Help, 2018) <https://myassignmenthelp.com/free-samples/remuneration-and-benefit-strategy> accessed 02 July 2020.

My Assignment Help. Remuneration And Benefit Strategy [Internet]. My Assignment Help. 2018 [cited 02 July 2020]. Available from: https://myassignmenthelp.com/free-samples/remuneration-and-benefit-strategy.


With time, MyAssignmenthelp.com has become one of the best college essay writing services. Our all rounded services give students the confidence to overcome assignment related issues. Our services are fast enough to meet most urgent deadlines. We are capable of delivering fast essay writing services with the help of our specially designed provisions and writers' teams. Our urgent essay help services guarantee most rapid delivery of assignment solutions. Some of our most popular essay services are application essay help, exploratory essay help, literary review essay help and argumentative essay help.

Latest HRM Samples

HRMT20024 Managing Human Resources 6

Download : 0 | Pages : 3

Answer: Article: 7 Ways to Improve Operations Without Sacrificing Worker Safety Article - objective Research Objective: Primary: The aim of the research is to analyse the relationship between workplace health and safety with obtained revenue streams and productivity Secondary: The research is focused on creating ways in which workplace health and safety can beimproved by maintaining revenue stream of an organisation. Resear...

Read More arrow Tags: Australia 28 managing human resources Central Queensland University 

HRM201 Human Resource Management 3

Download : 1 | Pages : 2
  • Course Code: HRM201
  • University: Kaplan Business School
  • Country: United States

Answer: Introduction Established in 1924 in Sydney 1930 saw the company to expand internationally 1937 saw the company launching the ‘Staff Assurance Scheme’ Employs more than 200000 people Recruitment Tries to select the deserving candidates only Candidates are placed based on the vacancies available HR department is very efficient that identifies the vacancies that are present within the company ...

Read More arrow

HRM201 Human Resource Management 2

Download : 0 | Pages : 3
  • Course Code: HRM201
  • University: Kaplan Business School
  • Country: United States

Answer: Introduction National Australia Bank is associated with more than 30,000 people serving almost 9,000,000 customers at more than 900 locations in New Zealand and Australia (Nab.com.au 2018). The company believes in innovations and work with the workforce by developing the infrastructure for the betterment of the customer services. Thehuman resource management of the company pays attention to the different HRM activities, su...

Read More arrow

HRM201 Human Resource Management

Download : 0 | Pages : 4
  • Course Code: HRM201
  • University: Kaplan Business School
  • Country: United States

Answer: Qantas Human Resource Management Qantas Airways Qantas Airways remain Australia’s largest airline Airline has expanded its operations to almost 140 destinations (Australian associated press 2014). The airHine has also over 37,000 employees, becoming the largest employer in Australia (Qantas 2010). Introduction most companies and organisations in Australia are striving to streamline their organisational activitie...

Read More arrow Tags: Australia Golden Grove Management Business Law University of New South Wales Humanities 

MGTS7604 International Human Resource Management

Download : 0 | Pages : 5
  • Course Code: MGTS7604
  • University: The University Of Queensland
  • Country: Australia

Answer: Purpose and Functions of Human Resource Management British Airways (BA) is an international airline organization that is carrying over 33 million passengers all over the world. The company is involved in managing the cargo operations, scheduled passengers and other services. It has two bases one is Gatwick and Heathrow. It has become one of the largest multi-national airlines in the world (British Airways, 2018). To attain its busines...

Read More arrow
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,354,168

Orders

4.9/5

Overall Rating

5,080

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

203 Order Completed

97% Response Time

Richard Alpert

PhD in Psychology

London, United Kingdom

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2115 Order Completed

97% Response Time

Kimberley Chen

MPA in Accounting

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

93 Order Completed

100% Response Time

Jackson Mitchell

MiM (Masters in Management) in Supply Chain Management

New Jersey, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

Work clearly captured the differences and benefits of various forecasting methods. I made the right decision for help!

flag

User Id: 383727 - 02 Jul 2020

Australia

student rating student rating student rating student rating student rating

at first i got the assignment in different company's name which was supposed to be Bearena pty ltd...i told them about this one and today i have received the same assignment, they have just change the company's name..rest is same...not a even single ...

flag

User Id: 410147 - 02 Jul 2020

Australia

student rating student rating student rating student rating student rating

Great work, I appreciate such an excellent work. Great APA format and references. I will recommend you to my friends.

flag

User Id: 400631 - 02 Jul 2020

Australia

student rating student rating student rating student rating student rating

Was on time .save by the bell.thank you so much.all exams was done. You guys are the best

flag

User Id: 260883 - 02 Jul 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?