Holland Enterprises Marketing Strategy

Running Head: Compensation and Benefits Strategy

Title

A revised compensation and benefits strategy for Holland Enterprises.
Introduction:
Holland Enterprises Inc is a large firm with about 3,500 employees. However, the company is facing a huge problem in terms of its human resources as records show that the company has lost over 25% of its workforce since 2007. Exit interviews of leaving staff members show that most of the employees have resigned because of their perception that the compensation and benefit system at Holland Enterprises is very unfair and uncompetitive in the marketplace. I hereby present an analysis of the concept of the compensation and benefits and a revised strategy for the same for Holland Enterprises as a
It is interesting to note that for many employees training means a lot more than money and they consider sponsorship to training programs as a major benefit. Healthcare costs are on the rise and hence employees value their healthcare plans a lot. It is important for companies to review their healthcare benefits annually so that they could know what the total requested coverage is and how much it would cost and to what extent it might be utilized (Arthur, 2001). Many employers offer no pension coverage to their employees. There are two types of pension plans: defined benefit (DB) and defined contribution (DC). In DB plans, employers have to pay the employees the pension amount that is calculated using a fixed percentage of their salary and years of experience (Arthur, 2001). DC plans are those that allow workers to manage their own retirement savings and investments. “Stock Options” allow employees to buy the stock of their company at a fixed price for a limited time period. They profit when the company does well on the market (Arthur, 2001). Employers may also offer their employees legal benefits according to which employers can utilize the services of a lawyer for their varied needs. Some employers bear the total costs and some others contribute partially (Arthur, 2001).
This is particularly useful to attract employees to Holland Enterprises Inc. without increasing salary levels. It would also be a great strategy for the company to absorb the withholding taxes that come with signing bonuses so that it would benefit the employees. * Holland Enterprises Inc must take a total value approach to its compensation plan. It must identify and offer a suitable mix of base and incentive pay to help in retaining its employees and achieve its strategic objectives. * Each employee must be made recipient to one of the company’s incentive programs all of which are based on performance of the employee. Such incentive plans will be the annual incentive plan that is based on performance results, a specialized incentive plan for certain groups of employees and a tactical incentive plan that would recognize the contribution of individual employees in certain particular projects. The payouts must be in cash. * Holland Enterprises Inc must communication to its employees, its pay philosophy and also the frameworks on which salaries and incentive pays are designed. An orientation session should be arranged for the employees where they get all the information they need on salary structures, incentive plans,