Each organization requires a strategic employee compensation system that covers the following four areas: reimbursement, advantage, acceptance, and evaluation. The problem with remuneration systems in many companies today is twofold: they lack some of the aspects, and the existing elements are not adequately coordinated with the rest of the company’s corporate strategies. The system of remuneration of employees consists of a set of motivational tools that have financial, material, or socio-psychological expression. An effective remuneration plan for employees of various levels is necessary for any company, as it affects the efficiency of work and motivation of employees.
The Company Stroser Inc.
The Company Stroser Inc. is a high-tech firm based out of San Mateo, California. It is planning on expanding towards the west. The company at the moment has almost five hundred staff members across the US. Company’s Headquarters are located out of San Mateo, its staff are situated all over the United States. The locations of employees are Texas, Arizona, Florida, Minnesota, and Utah. The one HR manager at the company is searching for a specialist to advise a helpful program for rewarding employees.
Planned Review of Rewards
The remuneration system should respond to and encourage two types of employee activity-performance and behavior. The easiest way to work with productivity is because there is a immediate connection between the original aims organizations set for the personnel and the ending results they achieve. For example, a company may implement a motivation plan or reward its best employees for achieving periodic goals. The factors which include wages, allowances, acceptance, and career growth are the driving forces of an effective total reward plan.
Analysis of Best Practices
HR Management has a fundamental role in the work of a company to strengthen the performance of employees. Mihardjo et al. emphasize that the “rewards given by firm in exchange of employee’s efforts such as recognition, salary, promotion advancement opportunities and personal growth must be able to meet the needs of employees or their expectation level in order to get better performance” (2020, p. 7). The primarily point for a company is to determine the behavior that is important to it. This behavior may include improving customer relationships, debugging crucial procedures, or assisting staff members to develop their management skills.
Section for Discretionary Benefits
Discretionary employee benefits include benefits that the law does not require from the employer. Such benefits may include physical health, mental health and substance abuse, prescription medications. In addition, they include dental and vision insurance for employees and their families, life insurance, a pension plan, training assistance, and assistance in paying for child care. An employer can offer discretionary benefits to build positive relationships with employees.
Executive Compensation Data
Remuneration to senior management is reflected as part of the salary in administrative expenses but is also presented separately in the note on related parties in the specified detail. Researches show that the pay has increased compared to latter times and has been neither constant nor uniform (Edmans et al., 2017). Compensation of major U.S. companies is growing from exports, foreign direct investment and size of a company, and technology (Keller & Olney, 2021). Many companies do not separately disclose the amount of social taxes related to remuneration to management.
Area for Best Practices
The simplest type of motivation is an increase in wages. This type of reward has more motivational functions than simply compensating for individual knowledge losses (Liu & Li, 2017). If there are few employees, these extra expenses are unlikely to impact profits strongly, and employees are perfectly motivated. The same type of motivation includes the accrual of bonuses – for example, a manager can be encouraged for a record number of closed orders, an accountant – for the successful closing of reports, a marketer for a successful advertising campaign.
References
Edmans, A., Gabaix, X., & Jenter, D. (2017). Executive compensation: A survey of theory and evidence. The handbook of the economics of corporate governance, 1, 383-539. Web.
Keller, W., & Olney, W. W. (2021). Globalization and executive compensation. Journal of International Economics, 129. Web.
Liu, H., & Li, G. (2017). To gain or not to lose? The effect of monetary reward on motivation and knowledge contribution. Journal of Knowledge Management, 21(2), 397-415. Web.
Mihardjo, L. W., Jermsittiparsert, K., Ahmed, U., Chankoson, T., & Hussain, H. I. (2020). Impact of key HR practices (human capital, training and rewards) on service recovery performance with mediating role of employee commitment of the Takaful industry of the Southeast Asian region. Education+ Training, 63(1), 1-21. Web.