Develop a compensation plan. Upper management has asked you to suggest a new compensation plan specifically for your team. Propose your ideas and rationale to the Human Resource Department Manager for approval.
? Write a 700- to 1,050-word proposal
o Describing a new compensation plan for your new employment team
o Explaining why your pay system will work
o Describing three components of a total rewards package that would motivate employees to reach peak performance
o Describing your compensation plan's benefits to the individual as well to the company
o You must include and cite a minimum of two references in APA format.
Employers offer rewards to employees in the form of compensation in exchange for job performance and commitment. Compensation refers to the extrinsic or monetary rewards that employees receive in exchange for their work. It is composed of the base wage or salary and if applicable, it also includes the following: incentives or bonuses and benefits. A company's employee compensation plan includes policies, procedures, and rules that provide clear determination and administration of employee compensation otherwise confusion or diminished employee satisfaction can cause litigation.
The proposed compensation plan takes into consideration the following:
1. It shows the company's vision and the company must perform a self-evaluation in order to determine what to accomplish to obtain its goals. It has to determine how to lower costs and gain customers and how it can achieve its goals in order to gain profits.
2. The salary package will not be very high and it depends on the position and skills needed for the job. Raises will not become an entitlement and will not be done regularly but will depend on how the company performs in terms of productivity in a certain period.
3. There will be more frequent or regular bonuses, e., quarterly, depending on the company's profitability and productivity.
4. Provide more incentives, e.g., monetary (or in kind) rewards for best employee, perfect attendance, most productive, ...
The solution is at least 700 words proposal of a compensation plan for a new employment team. It explains why the pay system proposed will work, describes the three components of a total rewards package to motivate employees, describes the plan's benefits to the individual and to the company. References are cited in APA format.