Business Assignment
Employee Compensation & Benefits Package 17
Project Charter- Employees’ Compensation & Benefits Package
Sarah Ferreira
HRM517
Dr. Jennifer Young
August 15, 2019
Summary
In project management, there is formulation of project charter, which is a document that gives direction on what is expected, and gives authorization on what project activities can be undertaken. Project charter ensures that project management team starts on the right foot from the onset of the project, and it is crucial in planning the project because it is used throughout the entire project lifecycle (McGhee & McAliney, 2007). The document consists of project background, goals, stakeholders, scope, project milestones, budget, constraints, risks and assumptions. Project charter therefore, provides a map/blueprint that management follows from the onset to ensure the objectives of the entire project are met (Bolles & Hubbard, 2007).
PROJECT CHARTER FOR EMPLOYEE COMPENSATION AND BENEFITS PACKAGE PROJECT
1 BACKGROUND
SITUATION ANALYSIS
As the head of Human Resource department, I am charged with the responsibility of formulating and implementing project to revamp the compensation and benefits package employees are receiving at the company. I am therefore authorized to design the employees’ benefits and compensation package project plan to guide efforts of successfully coming up with worthy and efficient employees’ compensation and benefits scheme. Revamping the employee compensation and benefits package will ensure that the employees’ morale is boosted, employee turnover minimized, and company’s short-term and long-term objects are achieved (Henderson & Mescon, 2004). The current compensation and benefits scheme is not detailed and doesn’t address the employees’ concerns conclusively. The project charter provides detailed approach of how the tasks will be undertaken, the plan on the necessary steps, the expected timeline and budgets (McGhee & McAliney, 2007); and all these will ensure that the Human Resource is adequately compensated and motivated in providing quality services.
PURPOSE OF PROJECT CHARTER
The Employee Benefits and Compensation Package project charter is developed to construct and design a proper plan that will aid in improving the current employee benefits and compensation scheme, and come up with a compensation scheme that takes into consideration various employee attributes, efforts, dedications when they are compensated. It also documents and track key information to guide approval/funding decisions.
PROJECT OVERVIEW
The Employee Compensation and Benefits package project is aimed at providing all the company employees with fair remuneration and benefits plan that fairly rewards them for the amount input provided (Martocchio, 2003). The project will focus on evaluating the shortcomings of the current plan, interview all employees in the company on the areas they feel should be improved, benchmark from corporations with well-developed HR packages, and implement favorable findings after considering company’s financial capabilities. The project is expected to run for a duration of 18 months, and an approximate budget of $225,000 for the whole period.
SCOPE
OBJECTIVES
To create employees Compensation and Benefits plan that is sustainable and in line with the company’s mission, vision and core values.
To formulate plan that incorporates the employees’ needs and concerns, and connects with the personnel in a manner that:
Motivates individual performance
Contributes to improved quality and enhanced efficiency.
To develop flexible plan that the company can adjust any time based on internal and external determinants.
DELIVERABLES
Plan and recommend Employee Compensation and Benefits system that enhances company’s development, enhances quality performance from employees and boost employee morale.
Ensure proper evaluation to enhance viability of the compensation and benefits system, and ensure it is in line with the mission, vision and the values of the company (Henderson & Mescon, 2004).
Ensure the Employee Compensation and Benefits package is flexible and adjustable subject to internal and external factors.
Ensure economic benefits to all parties; benefit the employees for the services rendered to the company and ensure value for money on the side of management from the Human Resource.
GUIDE FOR REVAMPING PROCESS
Develop system that is employee based; the compensation and benefits plan evaluate individual employee- his competencies, skills, and other attributes (Martocchio, 2003).
Develop plan that benefits all employees irrespective of job level at the company.
Consider all stakeholders’ opinions in the organization while formulating an efficient compensation and benefits plan (Martocchio, 2003):
Informal groups opinions on the current compensation plan, and the changes they need effected in the revamped plan.
Labor unions’ directives on the specific changes that should be made.
Consider the state/federal laws in coming up with the new compensation and benefits plans, to uphold legality of the system and avoid legal action.
KEY STAKEHOLDERS
Sponsor- Board of Directors
Manager- Sarah Ferreira
Technical steward- Bill Arnold
Legal/Contracting Officer- Lionel McLain
Security steward- Timothy Solomon
Information Officer- Liu Hong’
3.2 ROLES AND RESPONSIBILITIES
| Name | Role | Responsibilities |
| Company Board | Project Sponsor | - Act as project champion and provide direction and support to whole project team (Bolles & Hubbard, 2007). - Approve funding request, project scope presented, and set priority of project relative to others (Bolles & Hubbard, 2007). |
| Sarah Ferreira | Project Manager | - Guarantee projects sponsor and other company managers that new Employee Compensation and Benefits plan will meet expectation. - Organize team, ensure that proper decisions are made and allocate duties efficiently to aid project completion (McGhee & McAliney, 2007). - Affirm that project will run smoothly and completed as stipulated. |
| Bill Arnold | Technical Steward | - Responsible for day-to-day aspects of the Compensation and Benefits system. - Provide technical direction to the project. |
| Lionel McLain | Contracting/Legal Officer | - Has authority to enter, alter or terminate contractual terms with internal/external stakeholders on behalf of the project team/company. - Bears legal responsibility for all contractual matters that involves the company, project management team. - Interprets legal provisions that define/affect the compensation and benefits project. |
| Timothy Solomon | Security Steward | - Responsible for ensuring that the project’s information security is realized and maintained (McGhee & McAliney, 2007). |
| Liu Hong’ | Information Officer | - Ensure reliability of information gathered from the process and delivered to different stakeholders i.e. project sponsor to aid in decision making process. |
SCHEDULING
The Employee Compensation and Benefits project proposal will be formulated and evaluated within six months, and after which a detailed report is tabled before the project sponsor for analysis and decision making.
| Date | Expected Action |
| January 2 - 31 | - sponsor articulate the expected specifications that the project charter must meet concerning new compensation and benefits plan. - sponsor clearly outline the expected goals that the project manager and team should adhere to, the expected parameters and outcome. (Basically, the groundwork of the project is laid, expected path the project manager and team are expected to follow.) |
| February 1 - 15 | - The project manager, the team and sponsor meet to review, make alterations and approve the project charter. - Team starts formulation and outlining the scope of the project. |
| February 16 – May 30 | - The team reviews different aspects and competencies that build the benefits and compensation plan and formulate an appropriate program. - Team meet all stakeholders; interview employees to get their views on desired benefit plan, meets labor unions and informal groups in the company to get expert advice on the same, compile the findings and seek advice from Legal officer on clauses to be omitted due to looming illegality cases. |
| June 2 | - The team presents results and the relevant recommendations gathered to the company’s senior management and project sponsor for appropriate decision making. |
Communication Plan
Periodic Project Report: Project team leader will provide periodic reports and communication to project sponsor and senior company managers. The frequency of project reporting is determined by the sponsor and team members, and most favorable interval is agreed upon.
The project report must have provision for getting feedback from different team members as the process continues to enable prompt alterations and actions to be undertaken as project proposal evaluation continues (Bolles & Hubbard, 2007).
BUDGET ESTIMATE
FUNDING SOURCE
Formulation and evaluation of the new employee compensation and benefits project proposal requires funding. All the processes from initial meeting with project sponsor, project team formulation all the way to presentation of final report for decision making requires funding. Even after the approval of the proposal the actual roll-out of the project requires funding. Funding, therefore, forms a critical part in determining the success in coming up with proper employee compensation and benefits package plan (McGhee & McAliney, 2007). Funding the whole process will be made successful by getting money from:
Allocation of funds by Project sponsor to roll-out the process
Inclusion of the project in company’s financial year’s operational budget
Grant from interested stakeholders: interested in ensuring the company’s HR policies regarding employees’ compensation and benefits are changed/improved.
ESTIMATE
The project charter outlines how the Employee Compensation and Benefits plan will be realized and ensure that employee welfare is improved. Budget on how the allocated funds shall be spent is as follows on the entire project is as follows:
| Object Code | Budget Item | 1Thrd (6 months) $ | 2Thrd (6 months) $ | 3Thrd (6 months) $ | Total $ |
| 1X17 | Personnel… | 15,500 | 15,500 | 15,500 | 46,500 |
| 2X17 | Legal Fees | 11,000 | 11,000 | 11,000 | 33,000 |
| 3x17 | Transportation | 7,000 | 7,000 | 7,000 | 21,000 |
| 4X17 | Rent, Telecom, Power & other utilities | 14,500 | 14,500 | 14,500 | 43,500 |
| 5X17 | Printing & Reproduction | 8,500 | 8,500 | 8,500 | 25,500 |
| 6X17 | Equipment and Supplies | 12,000 | 12,000 | 12,000 | 36,000 |
| 7X17 | Meetings | 7,500 | 7,500 | 7,500 | 22,500 |
| Total $ | 75,000 | 75,000 | 75,000 | 225,000 |
ASSUMPTIONS, CONSTRAINTS, RISKS
ASSUMPTIONS
Increasing employees’ benefits and compensations directly impacts productivity levels positively (Martocchio, 2003).
Improving benefits offered to employees improves their morale and lowers staff turnover cases.
CONSTRAINTS
There may be difficulty in coming up with compensation and benefits package that satisfies all the employees. Different employees value compensation differently, and therefore formulating a plan that satisfies all employees is naturally not possible (Martocchio, 2003). The best that can be done is formulating a package that will satisfy most of the employees. No HR policy/plan can be fully accepted by all stakeholders, parties and employees at the workplace since people are different (Henderson & Mescon, 2004).
RISKS
At the workplace, there are numerous factors that contribute to any employee behavior experienced at a time. Ways to promote positive behavior at the workplace vary (Henderson & Mescon, 2004); and not everything is solved by improving compensation and benefits packages.
| Risk | Mitigation |
| Considering improving benefits and compensation as solution to all employee issues. | Assess the issues experienced at the workplace independently, and find solutions to each problem uniquely to avoid generalization of employees’ issues. |
| Blanket approach to implementation of compensation and benefits plan. | Employees view compensation and benefits differently. Instead of formulating a general benefits and compensation payout formula, HR must address employees separately and provide unique package to said employee. The compensation package must have a provision for considering employees individually when compensating them. |
WORK BREAKDOWN STRUCTURE
The work breakdown structure visually defines the scope into manageable chunks that a project team can understand (Bolles & Hubbard, 2007). It is a representation of 100% work required in the completion of the system.
| Stage | Duration (weeks) | % work 100 | Budget $225,000 | |
| 1 | Project Initiation | |||
| 1.1 | Develop situation analysis | 6.1 | 8,000 | |
| 1.2 | Develop project goals | 6.1 | 8,000 | |
| 1.3 | Develop Project Deliverables | 6.1 | 8,000 | |
| 1.4 | Develop project process guide | 6.1 | 8,000 | |
| 1.5 | Develop time schedule and milestone | 7.5 | 12,000 | |
| 1.6 | Develop communication plan | 4.4 | 7,000 | |
| 2 | Actual Project Execution | |||
| 2.1 | Analysis Phase | 9.1 | 21,000 | |
| 2.2 | Design Phase | 12.1 | 40,000 | |
| 2.3 | Validation Phase | 9.1 | 21,000 | |
| 2.4 | Deployment Phase | 9.1 | 21,000 | |
| 2.5 | Monitoring Phase | 12.1 | 40,000 | |
| 2.5 | Completion Phase | 6.1 | 8,000 | |
| 2.6 | Project Closure | 6.1 | 8,000 |
Reference
Bolles, D. & Hubbard, D. (2007). The power of enterprise-wide project management (1st ed.). New York: American Management Association.
Henderson, R. & Mescon, M. (2004). Influencing employee behavior at work (1st ed.). Atlanta, Ga.: Business Pub. Division, College of Business Administration, Georgia State University.
Martocchio, J. (2003). Employee benefits (1st ed.). Boston, Mass.: McGraw-Hill.
McGhee, P. & McAliney, P. (2007). Painless project management (1st ed.). Hoboken, N.J.: John Wiley & Sons.
