HRM531-My Views on Compensation-Raffy Rosero
HRM531-My Views on Compensation-Raffy Rosero
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Date Created: 11/09/15
Running head: MY VIEWS ON COMPENSATION 1 My Views on Compensation Raffy Rosero HRM531 October 15, 2014 Antonio Vienna MY VIEWS ON COMPENSATION 2 My Views on Compensation Thesis and Purpose Total compensation is viewed differently by each person, company, or any organization. There are three components of total compensation, the first one is direct financial compensation which consists of personnel’s wages, salaries, bonuses, and commission. The second is indirect financial compensation which consists of personnel’s mandatory benefits and voluntary benefits. The third one is nonfinancial compensation which consists of personnel’s satisfaction of the job psychological or physically in where the personnel work. In this paper I will explain the three components of total compensation, what my company doesn’t currently offer for the personnel, recommendations of what I would want the company would offer, organizational goals of my company, and why my recommendations on what the company should offer will collide with my company goals. (Antonio, 2012) Total Compensation Total compensation has three components which consists of direct financial compensation, indirect financial compensation, and nonfinancial compensation. Direct financial compensation is when the employee of the company is being paid for their services through wages and salaries. Some company offer bonuses and commission on top of the wages and salaries. Indirect financial compensation is when the employee receives mandatory and voluntary benefits. Mandatory benefits are the benefits that the law requires of a company, this consist of personnel’s social security retirement benefits, disability insurance, Medicare, workers compensation benefits, and more (Antonio, 2012). Voluntary benefits are the benefits that the company voluntary offer in order to develop the employee and compete with other company. MY VIEWS ON COMPENSATION 3 Voluntary benefits consists of personnel’s paid vacation, sick pay, sabbaticals, flexible compensation, and more (Antonio, 2012). Nonfinancial compensation is when the company uses motivation to the employee’s. According to Antonio Vienna in 2012, “The job itself is a central issue in many theories of motivation, and it is vital component of a total compensation program”. Current Offers My company offers all three components of the total compensation but it doesn’t have all that I think an employee in a technology company should offer. As a technology company we strive to be efficient, innovative, and always improving. My company should offer The Scanlon Plan, tuition reimbursement, and yearly bonuses. Offering this three types of compensation will help improve our company. Our companies’ organizational goals are to save money, maximize profits, and develop a positive work culture within the company. The Scanlon Plan The Scanlon Plan is when the employees is financially rewarded for saving the company labor by implementing a known process improvement, a good example would be is when the company is currently using paper for tracking and the employee has implemented a paperless process and was compensated for the idea (Antonio, 2012). As a technology company striving to be efficient and implementing the Scanlon Plan will motivate each employees in my company to be more efficient and keep improving in everyday work because they will be rewarded in the process of doing so (Casco, Wayne F., 2013, P.448). Tuition Reimbursement Tuition reimbursement is when the employees is financially covered by the company when they go to school to develop their skills, a good example would be when the company is MY VIEWS ON COMPENSATION 4 paying the employees Human Resources Management class after the employee have completed the course. As a technology company that’s trying to develop a positive work culture within the company, tuition reimbursement is necessary because this empowers each employees to be better because the company is giving them the opportunity to be a better employee. Also when an employee learns more knowledge it can help the company maximize profits by implementing what the employee have learned from school or from doing research from a different company in result from going to get educated. Also when developing current or future employees thru education can lead to compete better with other company that’s competing with the current technology market (Casco, Wayne F., 2013, P.457). Shortterm Incentives According to Antonio Vienna in 2012, “Payment of bonuses reflects a managerial belief in their incentive value”. In many companies most of their employees are driven by direct financial rewards and shortterm incentives like bonuses is one way of motivating this type of employees. In some company they only offer bonuses to employees that on the higher position in the company like program manager, project manager, and any manager in general but some company doesn’t offer bonuses at all. My company offers bonuses to employees in second tier level employees while anything under doesn’t received anything at all. The only thing that upsets me is that even if the second tier level employees doesn’t perform as expected still gets there yearly bonuses while the employees in lower tier that’s actually performing well in their jobs that’s more than expected is getting nothing, that’s why I believe that giving bonuses in my company should be applied to all tier level employees. For a company that is striving to build a positive work culture it is necessary to be fair when giving bonuses to employees because if this MY VIEWS ON COMPENSATION 5 implemented properly it will boast moral to employees and can cause the employee to perform better in everyday work, but when fairness is not implemented it can cause to decrease moral and employees to perform the same without improving or some just try to get out the company and find something better (Antonio, 2012) (Casco, Wayne F., 2013, P.500). Summary and Conclusion Developing and rewarding employees is important in a company because employees are assets that require this thing in order to move forward on a technology company that striving to be efficient and innovative. Yes it may cost the company a little extra but the return in investment will be better because when the employees are happy and contented with their current job, they will be more efficient and will help the company to be better in many places, a good example of this is SAAS company, when the CEO covered everything for the employees they were more innovative and efficient causing to be really successful. In my conclusion, if the company implements the Scanlon Plan, tuition reimbursement, and bonuses, this will create better moral to employees in my company and will boost efficiency and innovation. MY VIEWS ON COMPENSATION 6 References Vienna, A. (2012). Total Compensation. : . Cascio 9ed [VitalSouce bookshelf version]. Retrieved from http://online.vitalsource.com/books/9781121903814/page/448 Cascio 9ed [VitalSouce bookshelf version]. Retrieved from http://online.vitalsource.com/books/9781121903814/page/457 Cascio 9ed [VitalSouce bookshelf version]. Retrieved from http://online.vitalsource.com/books/9781121903814/page/500
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