Holland Enterprises Essay

Holland EnterprisesMost belatedly the firm Holland Enterprises has retained an hr consultant to review analyze and revise the current fee and avail structure. We stir seen since 2007 a 25% decrease in the die hardforce due to a lack of the benefits dodge that is in place. My team is committed to analyze and potentially variant show the perception that Hollands benefit formation is unfair and un rivalrous in the marketplace. We will find that faces excel and remain competitive when they have lucid human resource practices that align with the companies organisational goals. Increasing organizational productivity is of the essence(p) to every organization. Managers do it that simply ante uping employees more will not result in increased output and amend quality. They much find that employees who argon overpaid or highly paid relative to others doing compar fit work argon sometimes less productive than their lower-paid peers or counterpartsOrganizations realize that if t hey are to be more competitive, they must(prenominal) change this Im owed it mentality to an I earned it mentality. A major opportunity available to organizations to ingest about this change in attitude is to reduce the fixed part of earnings packages and increase the covariant part. The variable components consist of all short- and long-term incentives and awards.The kind and amount of incentives and awards must be linked straight off to desired employee behaviors, contributions, or results achieved. These incentives and awards comprise a stick out-for-performance program (Henderson, 2006). In other words Holland needs to have a organization in place that rewards employees fairly while exciting them to provide the very ruff customer service to meet the demand of the business. Through the use of a fair and stimulating earningss system, Holland Enterprises can make a motion their employees to complete their assigned tasks at the standards expected and in return the employ ee is compensated with a wage/salary, wage/salary add-ons, incentive cook upments and/or other benefits and services (Henderson, 2006). In point to upgrade positive change and make the compensation strategy fair for all the organization must, improve court and quality competitiveness and where information overload is a problem facing all organizations and their employees, information regarding work requirements, performance standards, and organizational recognition and rewards programs must be readilyavailable, complete, and accepted. The compensation system, therefore, must be able to transmit a message that is understood and accepted by all employees that they are valued contributors to organizational success and that the organization is willing to share the revenues from its products in an equitable manner with all members (Henderson, 2006). In order to create some harmony and re invigorated the faith of the people the company has decided to change the compensation and the benefit structure to become more competitive and become more in disceptation with the companies organizational effectiveness and plan.The new plan should have a more competitive edge, one that will motivate the employees and should be in byplay with the organizations strategy. Organizational leading, including those occupying the executive suites and those in charge of human resources and compensation practices, must be able to recognize and integrate the long-term strategic objectives of the organization with its short-term tactical requirements. An pinch of how organizational strategy and its related tactics interact and become integrated is becoming increasingly important to managers at all levels performing versatile organizational assignments. Compensation takes on many forms in any organization, this may include the obvious pay/wages, wellness care/insurance other fringe benefits such as paid time off, disability, bonuses and other monetary stipends. Pay may be adjusted found on how hard the employee chooses to work or what type of lifestyle the employee has. Proper and acceptable performance of unlike kinds of jobs requires different kinds and amounts of employee experience and skills, which vary significantly among individuals. In the course of their lives, many individuals acquire various kinds and levels of knowledge that organizations value. Additionally, through education, experience, training, and natural predisposition, some individuals are able to demonstrate different and greater skills than others. The worth to the organization of the individually acquired and job-required knowledge and skills is identified through job rates of pay (Henderson, 2006).In order to force a new pay structure and benefit system we must first look at the five major components that will factor into our decisions. These components are compensation and benefit philosophy, pay grades, ratio of prat pay to incentive pay, international candor and internal equit y and other types of benefits such as deferred compensation, health insurance vacation and sick leave. There are a number of components that need to be turn to when developing your compensation systems to ensure they align with your organizational strategy and objectives. One key to remember is that your compensation strategy must help to create the work culture you want. How you structure your systems and manage the internal and external equity issues, will directly inform the culture of your organizationA compensation philosophy is developed to guide the design and complexity of your compensation programs this is done by identifying your goals and objectives, considering your competitiveness in attracting and retaining employees, your emphasis on internal and/or external equity, and whether performance is tied to increases. Understanding what balance you want to achieve among direct salary and indirect benefit is critical in developing your overall centre compensation approach .A consonant philosophy provides a strong foundation for both the organization and the employee. Without a philosophy, leaders often find themselves unsure of what to offer as a starting salary for a new employee. This can lead to offering too high a total compensation package for a new employee in relation to existing employees, or being unable to successfully hire because the total compensation offer is too low to be competitive (hrcouncil.com). Using the five components will forgo Holland to remain competitive within the industry. Pay grades are a fair way to help retrieve the amount of pay a person will receive. The general characteristics of a pay grade system set forth by the federal government include that there should be 15 pay grades with 10 steps within each grade there should be a 25 to 30 percent increase from minimum to the maximum pay within each grade (Henderson, 2006). When an organization is establishing its wage policy, it must maintain external competitiveness. In other words, wages need to be high large to attract, motivate and retain talent but, wages shouldnt be so high that they drive savvy apostrophizes beyond those of competitors in the product market. Salary surveys help to determine the pay rates of various positions (erieri.com, 2013). Each organization must develop its own pay policy source, which is a trend line or line of best fit that best represents the middle pay value of jobs that have been evaluated or classified to have particular worth.A line of best fit produces a trend line by minimizing the sum of the squares of the vertical deviations around the line. A line of best fit can be a straight or curved line. In either case, it is one that best represents the middle pay value of all jobs or the benchmark jobs used to establish a pay policy line(Henderson, 2006). The ratio of base pay would be to identify the lowest and highest rate of pay is a rudimentary step in establishing a pay policy line. After identification, the next step is to establish what trouble expects to be the average or central tendency value paid to the lowest-rated job and the average pay rate of the highest-rated job. These highest and lowest average values should be the core of the pay for those jobs assigned this rate when a range of pay is available for each category. When only one rate of pay is assigned to a job or group of jobs, normally the average or midpoint value is the single rate. The midpoint value is normally the market or going rate (Henderson, 2006). Internal equity compares different jobs wrong a single organization in terms of their relative contributions to the organizations objectives, whereas external equity refers to how an employer positions its pay relative to what competitors are give.Equity reviews are completed to ensure that salaries for positions are internally consistent and remain externally competitive.External equity reviews are warranted if significant discrepancies exist between a posit ions salary and prevailing salaries positions in other companies or institutions within the same geographic area. Difficulties in recruitment and retention support the need for an external equity review. Every effort must be do to ensure that equity exists and the concept of equal pay for equal work is embraced (Henderson, 2006). Holland Enterprises need to understand that the cost of human capital is high when you are losing staff because of salary issues and benefit problems. And lastly employee benefits are a very important portion of the employees tenure with the organization. Most compensation components included within employee benefits are made available through some type of insurance plan. An important group of benefit components, however, is frequently noninsurance based and provides income to the employee at some future date. Employee benefits can be further classified under these septenary major groups (1) disability income continuation, (2) loss-of-job income continuat ion, (3) deferred income, (4) spouse or family income continuation, (5) health and accident protection, (6) property and liability protection, and (7) a supernumerary group of benefits and services called perquisites. Each of these groups contains a number of compensation components, which may have a variety of features that may be made available only to certain employees or certain groups of employees (Henderson, 2006).The organizations that supply the benefits and compensation play a huge role in the success of the business. Security for families is key for any employee and they swear on the specific benefits and compensation that they receive and the employers rely on superior employees that will be attracted to their company. This is the get reason why Holland should take much care when analyzing the benefits and compensation packages in the future as they must remain competitive if they would like to stay in business. The way to motivate employees is to provide a fair, compe titive and secure place to work. This may be attained if Holland Enterprises will be on board with paying the workers the incentives they deserve and in turn will receive the hard work in return and corroborate Holland Enterprise just as profitable as ever.ReferencesHenderson, R. (2006). Compensation management in a knowledge-based world. (10th ed.). speed Saddle River Pearson Prentice Hall. ISBN 0131494791 Retrieved from http//www.hrcouncil.ca/hr-toolkit/compensation-systems.cfm Retrieved from Retrieved fromhttp//www.erieri.com/tutorials/sa/index.html?lesson_2.htm Retrieved from http//www.stonybrook.edu/hr/employmentservices/classification/equity_review.shtml