Holland Enterprises: Compensation & Benefits Management
Holland Enterprises: Compensation & Benefits Management
BUS434: Compensation & Benefits Management (BWO1312A
HOLLAND ENTERPRISES: COMPENSATION & BENEFITS
With the changing economy it is important that Holland Enterprises improves their benefits and compensation plans for their employees. Holland Enterprises employs 3,500 employees, but since 2007 has lost 25% of its staff. Exit interviews indicate the primary reason a majority of these employees have resigned is because of a compensation and benefit system that is perceived to be unfair and uncompetitive in the marketplace. The reason why an analysis must be done is to attract and to retain employees. This paper will include the current status of Holland Enterprises benefit programs that will include compensation and benefit philosophy, pay structure architecture (pay grades, pay ranges, and pay width), ratio of base pay to incentive (bonus) pay, emphases on external equity or internal equity, principle type of benefits, and how effective compensation and benefit system contributes to organizational effectiveness.
As stated before Holland Enterprises currently employs 3,500 employees, however, since 2007 the company has lost 25% of their staff. When employees decided to leave, they all went through exit interviews. When the exit interviews were done, the company was able to figure out way employees were leaving. The main reason why employees were leaving Holland Enterprises was because the compensation and benefit system was perceived to be unfair and uncompetitive in the marketplace. So when it comes down to attracting new employees Holland Enterprises must evaluate and change the compensation and benefits packages accordingly because in today’s economy organizations are becoming more competitive with each other, Which means the compensation and benefits packages are becoming a huge factor. When employees feel as though the benefit and compensation system is to be unjust and uncompetitive, then employees
BUS434: Compensation & Benefits Management (BWO1312A
HOLLAND ENTERPRISES: COMPENSATION & BENEFITS
With the changing economy it is important that Holland Enterprises improves their benefits and compensation plans for their employees. Holland Enterprises employs 3,500 employees, but since 2007 has lost 25% of its staff. Exit interviews indicate the primary reason a majority of these employees have resigned is because of a compensation and benefit system that is perceived to be unfair and uncompetitive in the marketplace. The reason why an analysis must be done is to attract and to retain employees. This paper will include the current status of Holland Enterprises benefit programs that will include compensation and benefit philosophy, pay structure architecture (pay grades, pay ranges, and pay width), ratio of base pay to incentive (bonus) pay, emphases on external equity or internal equity, principle type of benefits, and how effective compensation and benefit system contributes to organizational effectiveness.
As stated before Holland Enterprises currently employs 3,500 employees, however, since 2007 the company has lost 25% of their staff. When employees decided to leave, they all went through exit interviews. When the exit interviews were done, the company was able to figure out way employees were leaving. The main reason why employees were leaving Holland Enterprises was because the compensation and benefit system was perceived to be unfair and uncompetitive in the marketplace. So when it comes down to attracting new employees Holland Enterprises must evaluate and change the compensation and benefits packages accordingly because in today’s economy organizations are becoming more competitive with each other, Which means the compensation and benefits packages are becoming a huge factor. When employees feel as though the benefit and compensation system is to be unjust and uncompetitive, then employees
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