Compensation and Benefits Part 2

Compensation and benefits

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Description.

This compensation strategy and plan is meant to ensure that this organization keeps the hard working and talented employees by giving them the best. According to Mone & London (2014) offering the best salary and entitlement is the best way to keep good employees and attract more. The strategy has taken into consideration the company’s goals and has obeyed the federal laws. The other issue taken into consideration is the current market wages and the standards of living. It has also been ensured that the compensation has fit in the budget, so the organization has nothing to worry about. This compensation strategy is for three major positions in the organization. The first one is the managing director’s position, the human resource manager’s position, and the public relations officer’s position (London, 2014).

Annual salary and entitlements

Managing director

This is the person responsible for the overall running of the organization. Every head of the departments is answerable to him. His annual salary will be set at $285,000 but is adjustable depending on the economic state. He is entitled to overtime allowances of $ 200 per hour. He is entitled to 5% of the salary as an annual increment. In any event, the organization makes a profit that is above 85% he has an entitlement to 0.5% of the organization’s profit.

Human resource manager

This is the person responsible for the organization of the organization’s employees to help achieve the organization goals. His annual salary will be set at $ 195 500 and based on the prevailing economic condition; it is adjustable upon agreement. He is to have an overtime allowance of $200 per hour. He is entitled to a 3% increment on the salary annually. Tin an event he comes out at the top in the national ranking of the human resource personnel, he will receive an award equal to 50% of the salary at that time (London, 2014).

Public relations manager

Being an organization involved in a lot of personal relations with the customers, this person will be held responsible for the customer’s claims and complaints. He is entitled to an annual salary of $ 145,000. This salary will always undergo increment if the economic conditions at a given time demand so. The salary will also undergo an annual increment of 2% of the annual salary. He is entitled to overtime allowance of $200 per hour. He is entitled to an award of 30% of the annual salary in an event he comes out a top performer. Based on the client’s feedback, he will be given a performance allowance equal to 2% of the annual salary if the records are impressive (London, 2014).

Retirement benefits

These are benefits to the individuals in the three positions if they work and retire in this organization. These benefits will depend on the period the employee has been in the organization. For workers who have worked within the organization for ten years and above, he will be entitled to 30% of the salary at the time of retirement multiplied by the number of years he has been in the organization. Employees who have been in the organization for 5 to 10 years will receive benefits equal to 20% of the salary at the retirement time multiplied by the number of years they have worked in the company (London, 2014). Those below five years in the company will be entitled to 10% of their salary at retirement multiplied by the years they have worked.

Health care allowance

According to Blumberg et al., (2012), this a requirement by the health care act. For any treatment involving any of the three, the organization will be responsible for the cost of treatment in whichever the hospital in the country. In an event, the individual is taken to another country for treatment the organization will be responsible for 80% cost of treatment. The organization will also cover 50% cost of treatment of any family member of the persons in these positions (Feder, 2012).

Feder, J. &. (2012). Why employers will continue to provide health insurance: the impact of the Affordable Care Act. New York: Springer.

London, M. &. (2014). Employee engagement through effective performance Management: A practical guide for managers. New York: John Wiley.