Crafting a Compensation and Benefits Plan
In today’s world, employers must acknowledge that maintaining quality employees requires the provision of the appropriate compensation and benefits package. This assignment seeks compensation and benefits plans for Happy Foods, an organization operating in the food industry. The task includes the salaries and benefits packages of three comparable companies in the food industry, what modern employees consider to benefit, and how companies can keep employees engaged.
Three particular organizations, Joy’s fast food, Delicious inn, and Wonder hotel, have been taken into consideration for acquiring a brief idea about how Happy Foods Inc. will develop a sufficient compensation and reward plan for its business units. Notably, the compensation and benefits package analysis will be conducted based on salary, dental benefits, medical benefits, vision benefits, retirement benefits, and life insurance benefits.
Joy’s fast food offers a salary of $40,000, while Delicious inn provides $50,000.Wonder hotel provides a salary of $55,000.All three companies offer medical benefits, but while Joy’s fast foods offer dental benefits, vision benefits, and retirement benefits, Delicious inn and Gracious Hotel does not provide such packages. While Wonder hotel does not offer its employees’ life insurance benefits, Joy’s fast food and Delicious inn offer life insurance benefits. Concerning vacation, Joy’s fast food provides 40 hours, Delicious inn provides 48 hours, and Wonder hotel 80 hours. The comparison reveals that the three companies operate differently concerning compensation and benefits. Wonder Hotel is offering the highest salary while Joy’s fast foods are concentrating more on the non-monetary benefits. With such, applicants will focus more on accepting Wonder Hotel’s contract; hence, its plan can be considered while developing Happy Foods’ compensation and benefit plans.
Traditional employee benefit programs have been an essential tool in maintaining employees. However, there are new things in the employment benefits that workers now consider as benefits, and employers need to know them. Today’s workers expect their employers to provide benefit packages that include flexible scheduling options and elder care benefits. Members of the 21st-century workforce find flexible working schedules appealing (Linge, 2019). Many employees prefer to have the opportunity to work seasonal hours and to stay in the workforce past the traditional retirement age. Others need control over their work schedule to be in a position to effectively manage the balance between family and work. Just as child care benefits and options are essential to most working adults, eldercare benefits have increasingly become important to workers who have to incorporate the need to care for elderly parents in their budget (Ireson, Sethi& Williams,2016). The reason is those baby boomers, the largest segment of the workforce, find themselves facing responsibilities for taking care of aging relatives and parents while simultaneously raising their children.
Employee engagement is a critical driver of an organization’s success. State of the American Workplace, a survey by Gallup, shows that 70% of the workers are not engaged in their work, costing the nation about $ 500 billion in lost productivity. The 70% is made up of 52% of workers who are disengaged and 18 % of workers who are actively disengaged (Lipman, 2015). Employers can keep employees engaged by praising employee contributions through rewards. Recognizing and rewarding employee performance through compensation packages and benefits enhances employee engagement because a considerable percentage of employees only offer their psychological commitment towards their work if they are satisfied. According to Fredrick Herzberg’s theory, employee satisfaction can be obtained from recognition and continuous growth (Maruf, Hadari & Amalia, 2019). Thus, motivated employees are deemed to work with utmost dedication towards the realization of the organization’s goals.