Total Compensation Plan
Barbara Chalfant, Lincoln Boe, Tisha Showers, Rena Brown, Jennifer Smith HRM/ 324
June 2, 2014
Total Compensation Plan
Riordan Manufacturing is a leader in the plastics manufacturing industry. As a fortune 1000 company, this employer of over 500 employees has not only made an investment into the products that roll off the production lines but most importantly the employees who help produce these products (University of Phoenix, 2013). In addition to the annual salary or hourly compensation these employees receive, Riordan makes additional investments in employees to better their wellbeing inside and outside of work. The complete benefit package offered by Riordan is known as the total compensation package. As outlined on Riordan Manufacturing’s website, Riordan’s key objectives are our customer relationships, our employees, and our future. These three key objects tie into our employees. We must hire the best employees; retain these employees in order to keep moving forward, and to maintain our customer relationships. In order to do so, Riordan offers a nice compensation package. For our part-time employees this package includes Social Security, workers’ compensation, state disability, and unemployment insurance. This package is also included with the full-time employee’s compensation package. For our regular full-time employees our compensation package is quite generous. The full-time employee compensation package includes “flexible spending accounts, 401(k) savings plan, dental insurance, educational financial assistance, flextime scheduling, health insurance, holiday, life insurance, and vacation benefits,” (University of Phoenix, 2014). Our total compensation plan supports our key objects in several ways. At Riordan we feel that it is necessary to have a good compensation plan in order to attract the best talent, recruit the best talent, and to keep the best employees. If the employees are happy our turnover rate will be low and our employee morale will be high. With a low turnover rate, we will be able to maintain and build upon our customer relationships. Additionally, with high moral comes a higher level of productivity which will help our company grow and develop over the years. In order for Riordan Manufacturing to keep a competitive total compensation plan the company closely watches the benefit plans to make sure the plans meet or exceed the plans that the other companies in their market have. In this way Riordan Manufacturing can adjust their plans so that they attract and retain employees. Riordan strives to maintain a team-oriented and innovated working environment. By providing a focus on the long-term ability of the company to maintain its potentialities, the employees are assured that they will be well informed and properly supported. Since Riordan leads the industry in identifying industry trends R&D is critical to the mission and exceeding the standards of ISO 9000 are important. The company stays on top of what is offered to outside employees so that the company stays in line on what or what not to offer potential employees as far as benefits and salary goes. The company can also look at different measuring tools to keep track of growing trends. For the future Riordan says, “We must be focused in achieving and maintaining reasonable profitability to assure that the financial and human capital is available for sustained growth,” (Apollo Group, Inc., 2013). Services can be compensation for employees too because compensation does not entirely come from non-monetary and monetary benefits. The employees that go to other countries for sales and other duties will get food provisions, housing, travel expenses, and for visiting the country the employees would receive expatriate education. There are discretionary benefits that consist of protection programs which employees can receive and those are long-term disability or short-term disability. The disability...
References: Martocchio, J. J., (2009). Strategic compensation: A human resource management approach (5th
ed). Upper Saddle River, NJ: Pearson Education.
MBA Articles, (2009). Retrieved from: http://www.mbaarticles.com/compensation-management/
University of Phoenix. (2013). Riordan Manufacturing (Multimedia). Retrieved from University
of Phoenix, HRM.324 website.
Please join StudyMode to read the full document