July 11, 2011
Proposal on a Compensation and Benefits Plan
Globalization and economy downturn are forcing companies’ to structure their benefit programs differently. Before some companies had a wide array of compensation for employees, but that has changed and these companies had to find ways to cut cost of benefits offer to new employees and find new programs to retain their current employees. Companies are basing their compensation and benefits programs on the economy decline and are attempting to contain staff sizes, payrolls, and benefits costs. On the other hand, small businesses have hard time competing with large companies (Cascio p. 463) because they have limited resources. For instance, BC Laboratories has been in business for more than 50 years and for the past two years has been struggling because business has slowed down. The company had to restructure the organization and combined some of the positions to save money and stay in business. Their employees’ morale is low and lately they have had high employee turnover. The human resources department has presented a new compensation and benefit proposal to the BC Labs owner. Because BC Labs is going through hard times, a non-monetary incentive program has been proposed without affecting the company’s budget. This will increase employees’ morale and their motivation, yielding positive results. Purpose of the proposal
This new proposal for a new compensation plan will include opportunity to grow, flexible hours to accommodate to their personal needs and employee recognition program (Recognition Rewards Enterprises, 2011). This program will boost employee productivity, decrease the employee turnover, retain qualified employees, and encourage company loyalty. This incentive plan will boost employees motivation, grow, and productivity. This will benefit the company by...