Compensation Plan Outline For PepsiCo

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// A compensation plan is a system that describes details of employees pay scale and supports properly defined pay system. In this regard, the compensation plan of PespsiCo has been discussed ahead regarding its feasibility to the organization. The below discussion would shed light on the evaluation of existing compensation plan of PepsiCo. The discussion would also shed light on current pay structure and suggestions for improving the discretionary benefits.//

A compensation plan is created to facilitate and reward the performance of employees with monetary and non-monetary benefits. These benefits can be in the form of a bonus, stock options, overtime compensation, travel allowances, medical and health benefits and insurance benefits (HR Guide, 2015). The PepsiCo has acknowledged the motive of providing employee support behind the creation of the compensation plan. The plan focuses on providing monetary, as well as, non-monetary benefits such as healthcare, wellness programs and work-life benefits to the employees of the company to reward their exceptional performance. In this regard, the company has also established a compensation committee that is responsible for framing adequate compensation policies and programs that mainly aims at hiring, retaining and motivating greater pool of talent from diverse national and international markets (PepsiCo.Inc, 2013). The committee designs short-term and long-term incentives for rewarding the employee performances and also tracks its impact on the efficiency of the employees. The committee designs such compensation programs that are competitive as per the industry standards and in accordance with the objectives of the organization. The compensation plan created by the committee caters to minute requirements and acts as a solution for health and financial problems faced by the employees. The compensation plan of the company respects and values the individual employee contribution in the achievement of goals and objectives, thereby boosting employee morale and confidence. The establishment of committee for the compensation not only stimulates a sense of trust in employees but also motivates the employees to perform well as their performance ...