Incentives and benefits in hrm

Dessler, G. (2017). Human Resource Management, 5th Ed. Pearson Education, New York.

Chapter 11 and 13

8- Substantive post- 75-100 words each

Discussion 1

1. Predict what type of candidate might be most attracted to an organization offering high salary and cash incentives, but expensive benefits. What are the pros and cons of this type of candidate?

2. According to Compensation & Benefits Review (2012), the effect of compensation on employee performance, satisfaction and organizational commitment is hard to overstate. Having an effective compensation structure may be tough for some HR units, as finding a balance a balance between direct and indirect compensation is the tipping point many times, as it is not always the money for employees. Employees want to establish themselves with a company or organization for the most part, as long-term employment and benefits helps them to feel that compensation for both themselves and their families eliminates them from looking elsewhere.

I'm thinking the kind of candidate who wants the package mentioned in the questions is pretty much most professionals.

For me, I have valued compensation packages that offer 401(k), more leave days, remote working opportunities and I have love it. What are your thoughts as it relates to other benefits and not so much financially-based?

Compensation & Benefits Review Vol 44, Issue 1, pp. 24 - 28 First published date: April-23-2012 10.1177/0886368712445666 Respond?

3. Most well educated and professionals that are looking for high paying jobs and are not worried about any benefits will more then likely be younger and hungry for promotions. They will thrive on the ability to progress and just look at making more money. Most high paying jobs come with big titles but could give an individual a late start to their career because of extra schooling and or testing and certifications that are needed. They probably do not have large families and may even be single because they are not worried about the benefits. Professionals with families will more than likely want the stability and benefits rather then the high pay and incentives. High paying jobs usually come with extra hours as well which means less family time. One negative towards a candidate in search for this type of job is that they are always looking for a better option or advancement which could mean a different company if they have a better offer. On the other hand you will get a very driven employee

Small Business Law. (n.d.). Retrieved from https://smallbusiness.findlaw.com/

Discussion 2

1) Should compensation adjustments be based on market movement, meritorious performance, or a combination of both?

2) Compensation adjustments should be based on a combination of both market and meritorious performance. In my experience, wages have typically not been a primary reason employee’s take a position in the organization. However, if someone feels they are not being fairly compensated for their role it’s likely a reason employee’s will look elsewhere for work.

Organizations that have a good pulse on the market movement for their organization should utilize that insight to remain competitive. Early in my career I worked for a fortune 100 organization that as a rule kept employees around the mid-point of the market for their position. They often didn’t go beyond mid-point even with proven high performers. This stance often led to frustration and to high turnover within the organization.

There needs to be a balance between both market and performance compensation to keep talent in an organization. Compensation just based on performance my not align with the market demand for the position and put an organization at risk of losing great talent. A few months ago, I was able to recruit an extremely talented and high performing individual from an organization because they weren’t market competitive for the role. I was able to sell him on the mission, great opportunity to learn, and grow as well as offer a salary that I knew wouldn’t be matched by his current organization. Respond?

3) I believe HR management has a lot to deal with when making the decision to change compensation adjustments because of market movement, work performance, or a combination of both. It really has to be both because in some areas the wages are different. If a employee is just showing up to work and not attempting to make the SMART goals agreed upon, it may be decided that the employee is not meeting production goals of the company and not meeting internal goals. If the employee is meeting the goals, it can mean that the employee is going get a raise based on what the company standard is for a person meeting performance metrics (SHRM 2018). If the market is pulling talent away, it can lead the organization to review what is being offered that is making employees shift to a competitor for example.

Sometimes looking at the ratio of pay for the same job for a current organization compared to another might make an employer decide to compensate with a slightly higher wage as shown on pg 356 and 357 of our text (Dessler 2017 Pg. 356). Some jobs will have jobs listed as like level 13 and 14 for hourly pay and level 15 and higher as salary based. The level is based on what an employee is expected to do is example. Rsponse?

Dessler, G. (2017). Human Resource Management, 5th ed. Pearson Education, New York.

SHRM, . (2018, April). Planning & Design: Compensation Philosophy: What are the advantages or disadvantages of a lead, match or lag compensation strategy?. SHRM

Discussion 3

1) Provide citation and reference to the material(s) you discuss. Describe what you found interesting regarding this topic, and why.

Describe how you will apply that learning in your daily life, including your work life.

Describe what may be unclear to you, and what you would like to learn.

2) found the most interesting part about this week’s material was about benefits, especially about the 401 (k) plans. The most popular defined contribution plans are based on section 401 (k) of the Internal Revenue Code and called 401 (k) plans (Dessler, 2017, p. 432). A 401 (k) plan is a qualified beneficial retirement savings plan which allows employees working for a private company or a corporation to save for life post retirement. It is like setting up a personal pension account for life after retirement and gathering adequate funds to live a salary-free life during the old age. The 401 (k) plan is important to me because I have one throw the state retirement plan and has always been able to add to the plan even if I changed jobs as long as it was a state job. I have also learned over the years to always contribute enough to your 401(k) to get your full employer match. Consider putting away even more if you can afford it, up to your annual contribution limit. If you change jobs, don’t spend the money, roll it over into an IRA, so the money continues to grow for retirement.

Reference

Dessler, G. (2017). Human resource management (15th ed.) Pearson Education.