Essay: Compensation Management Explain the Job

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[. . .] Since, Nutriment is at its establishing stage so it needs employees who can be committed to the organization and work dedicatedly so Jack will have to design a pay structure that could motivate the employees and get them connected with the organization. Jack will also have to discuss the pay policies with Harold and Emily so that to design the job's pay structure accordingly. (Morrow, 2012)

For the post of scientists, Jack will have to survey the markets that how much are the competitors paying at this position. But since, this is the job for the scientists who should have knowledge of both genetic engineering as well as agricultural biotechnology so an exceptional pay must be offered to the personal at this position.

6B. Should Jack suggests a pay policy to lead, lag or match the market? Explain your recommendation.

In case of some positions like the receptionist, office manager and a lab manager, Jack can opt to suggest pay policies that match the market. Since, these are the kind of jobs which can be refilled easily if any employee quits the job. However, Jack must suggest a leading pay policy for the post of scientists, marketing professional and an accountant. Here scientists are most important human resource for the organization as it is already difficult to find the skilled scientist so if any scientist quits with the job then it will be a big loss for the organization. Similarly, the accountant and the marketing professional personals are the ones who know all about the important information of the organization so the info may leak down if the employee quits the job. Moreover an organization will have to train the new employee from the scratch.

7. What types of claims can be made under workers compensation programs? Explain.

Workers compensation is the program planned by the Government, which ensures the employees that they will receive financial, medical and equitable benefits if they experience any work related injury or any disease during their course of employment. These benefits are valid until the employee gets well as like before or even one can avail these benefits for the whole life too. The Workers Compensation Program is legal for all the Government officials, university employees and agency officers. Claims can be made on:

Temporary or permanent disability

Loss of a body member

Survivor benefits for serious damages

Rehabilitation

Medical expenses

The maximum benefits are provided on temporary or permanent disability. Organizations offer benefits in different forms varying on basis of type of firm. These benefits include:

Medical insurance

Paid leaves and vacations

Retirement pension plans

Life insurance

Accident Insurance and so on In addition to these benefits, some organizations also offer employees to choose the benefits plan on their own choice what suits them best. These programs also consider the employee's family. If any employee loses its life for the sake of job then the organization will be obliged to offer benefits to its family. (Office of Workers' Compensation Program, 2012)

When an employee faces any injury or disability then the first he/she needs to do is to put up an application to its supervisor and request for the benefits as according to the Compensation Act. However, an applicant needs to prove this that the injury is occupational. Once it is proved then it is the responsibility of supervisor to complete rest of the procedure. (Workers' Compensation, 2005)

8A. Do you think changing Superior's time off policies will decrease unscheduled time off?

Yes, it will definitely help in decreasing the unscheduled time off. If the authority allows the employees to take vacations in the starting weeks of the year and prescheduled the sick leaves then it will bring a great positive change. Since, employees will not hesitate to prescheduled sick leaves for their other personal commitments after being authorized by the department. Secondly, reserving 2 sick leaves as paid will greatly change the behavior of employees. They will not use all of their 5 sick leaves for only unimportant tasks but dedicate themselves with the organization.

8B. Beyond reducing occurrences of unscheduled time off, are there any other benefits to offering PTO?

The paid time off or PTO will not only reduce the occurrences of unscheduled time off but it will also reduce the number of absentees. Since most of the employees just want to use up their sick leaves over the year even if they are not ill. So, by converting the 5 sick leaves to 2 Paid time offs will turn a responsible behavior in the employees. Moreover, the allowance of rescheduling the sick leaves will help the manager to properly manage the projects and staff.

8C. Are there any disadvantages to offering PTO?

Yes, an organization might face some problems due to reducing the number of paid time offs. This can demotivate employees and due to less number of paid leaves, the turnover rate might increase. Moreover, the fresh candidates may hesitate in connecting with the organization due to strict leave policies.

9. Analyze the issues surrounding cash balance plans?

Cash balance plan is usually considered as the hybrid plan, since it is perceived as the combination of defined benefit and defined contribution plan but actually it is a complete defined benefit plan. However, cash balance plans are defined for the shorter periods whereas defined benefit plans are for longer periods. So, an employee can receive a lump sum amount or an annuity over the hypothetical account on leaving the job. But the employer-sponsor faces risk at such plans.

Generally, these cash balance plans turns out to be beneficial for the employees but there are chances of less benefits as compared to the defined benefit plan. Since, the formula used for these plans counts benefits on the yearly earnings and this not only considers your best earning but the worst too. Moreover, an employee cannot get the investment return profits since the employer do not pay for the exceeding earnings on interest credit. The employees who are on traditional defined benefit plans can face negative effect on their profits if the employer converts the plan to cash balance plan. Since, in traditional plan the benefits are accumulated from the start of the job whereas in cash balance plan the benefits are counted for the current year so the employees might lose their previous profits.

(Elliott, Kenneth & Moore, 2000, pp. 1-11)

From the employer's perspective, the cash balance plans are advantageous as well as risky too. The good thing for the employer is that, funds are retained on all profits. So, an employer has chances of keeping the profits according to these plans. But on the other side, the investment is risky for the employer too. Like if the plan bears loss, still an employer has to pay to the employee.

(Moukawsher & Walsh, LLC. 2000)

10A. What are some advantages of implementing the HSA option?

The Healthcare Saving Accounts with high deductible health insurance plan offers minimum costs to be expensed by the company as compare to the Frontline PR that is being currently offered. Moreover, it is also a better option for the employees as it provides a chance to save costs incurred every month and a year.

10B. What are some potential disadvantages of the HSA option?

Some of the potential disadvantages that Allison highlighted while conversing to Susan are less chances of employees availing the high deductible health insurance plan since this will cost them spending more out of the pocket expenses on their own health. In addition to this,, major part of the staff at the organization is in the administration who have great say so they will take a wiser decision and would not go for the high deductibles for health care insurance plans.

10C. What do you recommend? Why?

In my opinion, Susan should not go for the healthcare saving account that calls for high deduction of health insurance plan. Agreeing with the point-of-view of Allison that who is going to avail this option is quite valid. Though the Healthcare Saving Account will reduce the overall healthcare insurance costs but since there is more number of administrative staff at the organization who has greater say. They are not going to pay high cost on healthcare. So converting the system from Flexible Saving Account to Healthcare Saving Account may cost a lot to the company instead of savings.

11. What impact will flexible work schedules have on employees' commitment to their employers? On employees' productivity? On company effectiveness?

Flexible working schedules have a great positive effect from every aspect. Since, employees are provided with stable working hours and so they can enjoy their social life too so their commitment level is improved, burn out is lessened and thus the productivity of the company also gets better with flexibility at work. Number of researchers compared the companies productivity considering their working schedules and found that an improvement in… [END OF PREVIEW]

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