case study
Employee Compensation and Benefits
A strategic plan for employee compensation determines how much you want to pay employees and what type of employees you want to attract and retain. Compensation plan entails a variety of aspects including pay scales, reward programs, benefits packages and company perks. A successful compensation plan should let the business to compete in the market for the best employees in respective industries.
Attracting Talent
Your strategic plan for compensation plays a large role in attracting competent employees. Paying wages at or above the prevailing wage in the market for your company's industry allows you to demand workers with more experience and positive work histories. Employing more qualified workers leads to better results, including higher productivity and customer service interactions. This can increase your company's revenue and help your business establish its identity with consumers.
Today it is common for many companies to offer tuition reimbursement, profit sharing, employee stock purchase plans and retirement plans as part of the compensation plan. Tuition reimbursement is usually contingent on the employee completing a management-approved course at a higher education institution and earning an acceptable grade. Profit sharing is based upon a percentage of the employee's salary and her years of service. Employee stock purchase plans are an often overlooked, but valuable, form of compensation. They allow employees to purchase shares of stock at a discount. Retirement plans allow the employee to contribute a percentage of his earnings into an investment account and receive a company match
Rewards for Performance
A compensation strategy may also include rewards for employees based on workplace performance. This may include a commission-based system that rewards employees for total amount of sales or for consistent positive feedback from customers. A reward system should be easy for employees to understand and
A strategic plan for employee compensation determines how much you want to pay employees and what type of employees you want to attract and retain. Compensation plan entails a variety of aspects including pay scales, reward programs, benefits packages and company perks. A successful compensation plan should let the business to compete in the market for the best employees in respective industries.
Attracting Talent
Your strategic plan for compensation plays a large role in attracting competent employees. Paying wages at or above the prevailing wage in the market for your company's industry allows you to demand workers with more experience and positive work histories. Employing more qualified workers leads to better results, including higher productivity and customer service interactions. This can increase your company's revenue and help your business establish its identity with consumers.
Today it is common for many companies to offer tuition reimbursement, profit sharing, employee stock purchase plans and retirement plans as part of the compensation plan. Tuition reimbursement is usually contingent on the employee completing a management-approved course at a higher education institution and earning an acceptable grade. Profit sharing is based upon a percentage of the employee's salary and her years of service. Employee stock purchase plans are an often overlooked, but valuable, form of compensation. They allow employees to purchase shares of stock at a discount. Retirement plans allow the employee to contribute a percentage of his earnings into an investment account and receive a company match
Rewards for Performance
A compensation strategy may also include rewards for employees based on workplace performance. This may include a commission-based system that rewards employees for total amount of sales or for consistent positive feedback from customers. A reward system should be easy for employees to understand and