Holland Enterprises

Topics: Employee benefit, Executive compensation, Employment compensation Pages: 5 (1807 words) Published: September 15, 2013
Holland Enterprises

Most recently the firm Holland Enterprises has retained an hr consultant to review analyze and revise the current compensation and benefit structure. We have seen since 2007 a 25% decrease in the workforce due to a lack of the benefits system that is in place. My team is committed to analyze and potentially change the perception that Holland’s benefit system is unfair and uncompetitive in the marketplace. We will find that organizations excel and remain competitive when they have consistent human resource practices that align with the companies organizational goals. Increasing organizational productivity is important to any organization. “Managers know that simply paying employees more will not result in increased output and improved quality. They frequently find that employees who are overpaid or highly paid relative to others doing comparable work are sometimes less productive than their lower-paid peers or counterparts…Organizations realize that if they are to be more competitive, they must change this “I’m owed it” mentality to an “I earned it” mentality. A major opportunity available to organizations to bring about this change in attitude is to reduce the fixed part of compensation packages and increase the variable part. The variable components consist of all short- and long-term incentives and awards. The kind and amount of incentives and awards must be linked directly to desired employee behaviors, contributions, or results achieved. These incentives and awards comprise a pay-for-performance program “(Henderson, 2006). In other words Holland needs to have a system in place that rewards employees fairly while exciting them to provide the very best customer service to meet the demand of the business. “ Through the use of a fair and stimulating compensation system, Holland Enterprises can motivate their employees to complete their assigned tasks at the standards expected and in return the employee is compensated with a wage/salary, wage/salary add-ons, incentive payments and/or other benefits and services” (Henderson, 2006). In order to promote positive change and make the compensation strategy fair for all the organization must, “improve cost and quality competitiveness and where information overload is a problem facing all organizations and their employees, information regarding work requirements, performance standards, and organizational recognition and rewards programs must be readily available, complete, and accepted. The compensation system, therefore, must be able to transmit a message that is understood and accepted by all employees that they are valued contributors to organizational success and that the organization is willing to share the revenues from its products in an equitable manner with all members” (Henderson, 2006). In order to create some harmony and renew the faith of the people the company has decided to change the compensation and the benefit structure to become more competitive and become more in line with the companies organizational effectiveness and plan. The new plan should have a more competitive edge, one that will motivate the employees and should be in line with the organizations strategy. Organizational leaders, including those occupying the executive suites and those in charge of human resources and compensation practices, must be able to recognize and integrate the long-term strategic objectives of the organization with its short-term tactical requirements. An understanding of how organizational strategy and its related tactics interact and become integrated is becoming increasingly important to managers at all levels performing various organizational assignments. Compensation takes on many forms in any organization, this may include the obvious pay/wages, health care/insurance other fringe benefits such as paid time off, disability, bonuses and other monetary stipends. Pay may be adjusted based on how hard the employee chooses to work or what type of...

References: Henderson, R. (2006). Compensation management in a knowledge-based world. (10th ed.). Upper Saddle River: Pearson Prentice Hall. ISBN: 0131494791
Retrieved from: http://www.hrcouncil.ca/hr-toolkit/compensation-systems.cfm Retrieved from: Retrieved from:http://www.erieri.com/tutorials/sa/index.html?lesson_2.htm
Retrieved from: http://www.stonybrook.edu/hr/employmentservices/classification/equity_review.shtml
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