HRM 530 Assignment 5 Employee Compensation and Benefits

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Employee Compensation and Benefits

HRM 530 Assignment 5Section 2: Presentation

– Overview– Compensation Plan Objectives – Compensation Plan – Compensation Structure– Intangible Rewards– Exempt Status– Overtime Policy– Future Benefits – Internal Equity

Presentation Index

– External Equity – Organizational Comparison– Government Regulations– Legally Required Benefits – HRM Strategy– HRM Strategy Alignment– Recommendations– Conclusion– References– Questions

Presentation Index Cont.

Organization : Small Advertising AgencyJob Position: Office Assistant Full TimeFixed Location (No Travel)

Overview of Position

Attract High Quality Applicants to PositionMotivate High Performance Retain Employee (minimum 3 years)Achieve Internal and External Equity Contribute to Company Goals / Proftitability

Compensation Plan Objectives

Components of the compensation plan offered the Office Assistant includeHourly Wage Rate Retirement 401k (Employer matching funds)Annual Raises and Bonuses Health Insurance PlanPaid Time OffTuition Assistance Stock OptionsCareer DevelopmentIntangible Rewards

Employee Compensation Plan

Hourly Wage Rate -$22Annual Increment on Base Pay – 5%-10%Medical Allowance -$1500Annual Bonus Paid -$5000Stock Options (Discounted Rate) – $1000 in stock optionsRetirement/ 401k – 6% Employer MatchTuition Assistance Allowance Quarterly – $1100Paid Days Off – 22 Days

Compensation Structure

Employee of the month (Parking/ Recognition)Career MentoringAccess to Networking EventsTraining/ Development

Intangible Rewards

According to the Fair Labor Standards Act (FLSA) an Employee can be Exempt or Nonexempt based on Job pay and Job description and responsibilities. For our Office Assistant they will be hourly employee without any direct reports to them.In this scenario the office assistant would be nonexempt and eligible for overtime after 40 hrs.

Exempt / Nonexempt Employee

The office assistant will be an hourly employee Nonexempt The position will be eligible for 20 hrs of over time per month.

Over Time Policy

Wellness Programs Paid Gym Memberships Corporate Memberships / Discounts Investment Guidance

Benefits Considered in the Future

The employee will receive the base compensation elements offered to the rest of the staff starting day one.Have also done a compensation review of internal employees to determine if the company as a whole is at, below, or above market levels.

Internal Equity

The organization has conducted pay surveys amongst its competitors in the market place.Proposed compensation structure competitive in the market place.Wages, benefits are at market or above market averages for an office assistant.

External Equity

{5C22544A-7EE6-4342-B048-85BDC9FD1C3A}Organization 1Organization 2 Compensation $35,000Compensation $42,000Health Care (no dental)Health care Tuition Assistance No Tuition AssistancePaid Time OffPaid Time off401 K / RetirementNo 401 k / Retirement

Organizational Comparison

Comparison to two external companies compensation plan for a similar position.

Some Laws that need to be considered when designing the compensation structure are as follows ADA (American’s with Disabilities Act Age Discrimination Act Omnibus budget reconciliation actHealth insurance act

Government Regulations

Social securityUnemployment insuranceWorkers compensationFamily and medical leave (FMLA)

Legally Required Benefits

HRM Strategy

TalentEmployee must meet certain qualificationsHigh pay will be dependent upon talent and qualificationHigh performanceEducation and training will be offeredEmployee will be offered competitive performance-based payConstant monitoring for feedbackStrategicEmployee satisfaction through enticing benefits package

HRM Strategy Alignment

HRM needs to consider all positives and negatives when including a element in the compensation structure.Company must take into consideration the updates in legal requirements to adapt it to the company.Compensation structure needs to compliment the over all HRM Strategy.

Recommendations

Compensation Structure meets internal and external equity requirements. Designed to attract, retain, and motivate potential employeesLegally sound structure with low riskSubject to yearly review

Conclusion

Sibson, R. (1990). Compensation (1st ed.). New York, NY: American Management Association.Graham, M., Roth, T., & Dugan, D. (2008). Effective executive compensation (1st ed.). New York: AMACOM/American Management Association.Gerhart, B., Minkoff, H., & Olsen, R. (1995). Employee compensation: Theory, practice, and evidence.http://www.flsa.com/coverage.htmlSba.gov,. (2014). Optional Employee Benefits. Retrieved 6 June 2015, from http://www.sba.gov/content/optional-employee-benefits

References

Contact Information HR Manager – Andrew D Martinandrewmartin930@gmail.comWork # 800-922-0204Cell # 207-431-5808

Questions?




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