HRM 531 WEEK 5 Individual

Topics: Human resource management, Salary, Executive compensation Pages: 6 (955 words) Published: June 28, 2015


Career Development Plan Part IV: Compensation
Kenneth Laureano Benitez
University of Phoenix
Human Capital Management in Puerto Rico/HRM-531PR
December 22, 2015
Prof. Christella Navedo-Galindez

Career Development Plan Part IV: Compensation
In this paper we are going to describe the compensation plan for our new team in Puerto Rico. We will explain the reasons of why we think that our payment system will be effective, will offer a description of three components of a total rewards package that would motivate our employees to reach peak performance, and also will describe the benefits of the compensation plan for individuals as well as to the company. Finally, we are going to explain how the compensation plan of Puerto Rico, differs from the compensation plan of the parent company, including a rationale for the differences (Wayne, 2008, Chapter 9). Now, we are going to talk about the importance of the compensation and benefits plan in companies. The work motivation is the psychological force that drives people to start, maintain and improve their work tasks. We can’t find people motivated to contribute to the organizational goals if they can’t find in the organization a way to meet their personal needs in an economic, social or personal development type. InterClean-EnviroTech, wants to apply a policy of compensation to achieve the following objectives: to be an attractive employer with competitive compensation program, comply with legal requirements, internal politics and culture of the company, be transparent and objective, motivate and retain employees with relevant performance indicators and motivate employees to achieve more effective results (Wayne, 2008, Chapter 9). A company is what human resources are capable of. For us, it is extremely important as a company, to have programs and performance evaluation procedures that are aligned to the systems of compensation and benefits, which should be clear and known to all persons working for the company. The process of administrating the compensation brings benefits both staff welfare, as in the work environment of the organization, and results of the company. Our compensation system consists of two main parts: the first corresponding to the salary, bonuses and allowances paid to staff. This first part is called "total compensation package", alone is comprised of those cash payments and benefits, services or benefits that staff receive which contribute to improving the welfare and living standards of the employee. The second part of the compensation is for the direct satisfaction the employees receive depending on the execution of their work. This second component is usually called working environment. The concept of incentive, is used to designate any amount of money contingent, conditional, received by personnel when certain predefined conditions are met, productivity bonuses awarded for achieving a certain level of productivity, incentives for meeting sales quotas or bonds that some managers receive, when they meet performance levels previously negotiated. Unlike salaries, which reward demonstrated performance, the company can use incentives to stimulate the interest of staff to achieve better results in their personal future and shape certain distinctive features that the company considers desirable in its culture. To start working with direct financial compensation we will begin using the global labor market guideline adjusted to our market rate. We must work well with the job analysis to identify the structure of employment, to create hierarchies of job value, and to eliminate pay inequities. To realize the job analysis, we will use the method point. Point, allows us to identify and define the compensable factors of our sellers. When proposing a salary for a position in particular, we are going to use pay grades, as it simplifies the pay rates between similar positions within the company (Lister, 2015). Our sales team will feature...

References: 1. Wayne, M. R. (2008). Human Resource Management (10th ed.). Retrieved from The University of Phoenix eBook Collection database.
2. Lister, J. (2015). Strategic Plan for Employee Compensation and Benefits. Retrieved from http://smallbusiness.chron.com/strategic-plan-employee-compensation-benefits-15613.html
3. Benefits and Compensation. (2015). Retrieved from http://www.cmu.edu/hr/benefits/
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