Plastec Strategic Comp
Strategic Compensation Plan for Machine Operators: Plastec Company Case Study
Webster University
Strategic Compensation Plan for Machine Operators: Plastec Company Case Study
Over the last 18 months, Paul, Director of HR, has faced many challenges within Plastec Company regarding high turnover rates, discrimination and much needed training, along with other various human resource concerns. The organizational culture has thus improved. In effort to keep that momentum, Paul is currently developing a strategic compensation plan for the company’s machine operators. This plan will help Paul to better understand how Plastec compares with other area employers in terms of wages and benefits, and develop compensation strategies to reduce turnover and increase productivity. The plan will also take into account the current demographic of the machine operators and benefits that best suit them.
In efforts to understand how Plastec compares to other regional employers in terms of wages and benefits, Paul should first look at the compensation philosophies of the organization. Entitlement compensation typically regards pay and raises based off length of service whereas performance compensation regards pay and raises on performance. The introduction of week 6 suggests that Plastec current compensation philosophies are based off of performance and entitlement. Paul can use work related surveys to determine the competiveness of Plastec’s pay and compensation against other area employers. The pay data from these surveys can determine and rate both wages and benefits. In week 7 introduction, John conveyed to Paul that employees were unhappy due to the health insurance co-pay being increased. Paul must find a way to offer other benefits that provide the company a competitive advantage over other organizations in the same industry. Therefore, Paul should strive to create a win-win situation for the organization and for its employees to
Webster University
Strategic Compensation Plan for Machine Operators: Plastec Company Case Study
Over the last 18 months, Paul, Director of HR, has faced many challenges within Plastec Company regarding high turnover rates, discrimination and much needed training, along with other various human resource concerns. The organizational culture has thus improved. In effort to keep that momentum, Paul is currently developing a strategic compensation plan for the company’s machine operators. This plan will help Paul to better understand how Plastec compares with other area employers in terms of wages and benefits, and develop compensation strategies to reduce turnover and increase productivity. The plan will also take into account the current demographic of the machine operators and benefits that best suit them.
In efforts to understand how Plastec compares to other regional employers in terms of wages and benefits, Paul should first look at the compensation philosophies of the organization. Entitlement compensation typically regards pay and raises based off length of service whereas performance compensation regards pay and raises on performance. The introduction of week 6 suggests that Plastec current compensation philosophies are based off of performance and entitlement. Paul can use work related surveys to determine the competiveness of Plastec’s pay and compensation against other area employers. The pay data from these surveys can determine and rate both wages and benefits. In week 7 introduction, John conveyed to Paul that employees were unhappy due to the health insurance co-pay being increased. Paul must find a way to offer other benefits that provide the company a competitive advantage over other organizations in the same industry. Therefore, Paul should strive to create a win-win situation for the organization and for its employees to
References: U.S. Department of Labor (USDOL). Statics: Wages, Earnings, & Benefits. Retrieved October 1, 2014 from http://www.dol.gov/dol/topic/statistics/wagesearnings.htm Mathis, R. L., Jackson, J. H., and Valentine, S. R. (2014). Human Resource Management (Fourteenth ed.). Stamford, CT: Cengage Learning. Hay Group (2009). The Changing Face of Reward. Retrieved October 4, 2014 from http://www.haygroup.com/downloads/ww/misc/cfr_global_report.pdf