Compensation and Benefit Recommendation

Compensation and Benefit Recommendation

Introduction

Job evaluation is crucial because it ensures that employees get the proper compensation based on their contribution to the performance of the business. The information gathered from various job evaluation methods is vital in motivating employees and enhancing the performance of organizations because employees get compensated based on the efforts they put towards completing various tasks in the organizations, the knowledge, skills, and capabilities they have for completing tasks and how they use them for the success of the organization, the work environment they tolerate and the hours they work. Get in touch with us at eminencepapers.com. We offer assignment help with high professionalism.

Job evaluation methods utilized to determine compensation strategy

One of the job evaluation methods used to determine compensation strategy is the ranking method, where jobs are ranked from the highest to the lowest and are then compared based on various job descriptions (Livy, 2020). One of the advantages of this method is that it is relatively simple to use. It also includes low costs and less time to introduce and maintain it. The main disadvantage of this method is that the information on the jobs in every rank may not be sufficient. Another disadvantage is that there are no well-established ranking standards, and there may be a lack of equality in the differences between jobs. The lack of standards for comparison makes the ranking unfair because new jobs are compared with existing jobs to establish their appropriate rank.

The second job evaluation method used to determine compensation strategy is the factor comparison method, which compares jobs on various aspects to get an arithmetic value for every job and come up with a job structure (Livy, 2020). The main advantage of this method is that the job value is expressed in monetary terms hence making it easier to compensate employees. Another advantage is that the wage structure can be differentiated based on the factors that an organization wants to consider. The main disadvantage of the method is that its application is lengthy and consumes a lot of time. The standard used to determine pay for every factor may also have built-in biases that would impact certain employee groups, such as minorities and females.

The third job valuation method is the classification method, which involves defining various job grades or classes and fitting jobs into them (Livy, 2020). The method’s main advantage is that it is simple and may be easy to get an agreement about how to classify jobs. The method is also flexible in adapting to new jobs and adjusting evaluations based on changes in the work environment. The main disadvantage is that the method is hard to administer if many grades or classes and steps are involved. The method is also prone to ambiguity because it involves writing descriptions of the grade levels and the judgment needed in their application.

I would recommend the ranking method because it is simple to use and ensures that employees get fair compensation because the jobs are ranked based on importance and complexity. Employees completing the most challenging jobs can, therefore, get better compensation, hence motivating them to be more productive. The method is also the best because it reduces employee turnover since compensation is fair and the importance of the jobs in the ranks is determined based on the responsibilities and duties of the employee and the job demands, thus making employees feel appreciated for the effort they put into improving the productivity of the organization.

Benefits the Business Should Offer

One of the benefits that the company should offer is flexible working hours. Employees are more productive when they are granted flexible working hours, which enables them to achieve the work-life balance they need. The second benefit that should be offered is health insurance. An employee’s health is one of the most critical factors contributing to their productivity in the workplace. The business should provide health insurance to ensure that employees get medical care whenever they need it (Garabato et al., 2018). The third benefit is retirement savings. Employees are more committed to an organization if they know that their future is secure and the organization will take care of them when they retire. Retirement savings options assure employees that their contribution to the business’s success will be rewarded even when they retire (Garabato et al., 2018). The fourth benefit is paid time off. However, some employees may opt not to take time off if they are not compensated for the days they are not at work. Therefore, the business needs to introduce paid time off to encourage employees to rest when they are too tired to be productive in the work environment (Garabato et al., 2018). The fifth benefit is wellness programs. The rationale behind wellness programs is that organizations invest in the wellness and well-being of their employees and reap the benefits through the productivity and happiness of the employees (Garabato et al., 2018). The sixth benefit is skills development. The productivity and innovativeness of employees increase when employees are offered skills development programs because they feel obliged to enhance the performance of the business because it has invested in developing their skills (Garabato et al., 2018). The sixth benefit is team-building activities. Encouraging teamwork among employees increases innovation due to the exchange of ideas. The business should include regular team-building activities to allow employees to bond and establish strong teams.

Signs the Company Might Look For to Know If Employees Are Engaged

The main signs that the company might look for to know if employees are engaged are how employees communicate, their commitment to completing tasks assigned to them, their attitude, and their collaboration with other employees. Engaged employees are proactive in communicating and expressing their problems to ensure that they do not interfere with their productivity. They also use communication to suggest strategies that the business can use to boost productivity (Yadav, 2020). The commitment to completing tasks can be assessed based on the time taken by employees to complete the tasks and how well they meet the business’s expectations. Engaged employees complete the tasks assigned to them on time and exceed expectations by introducing new ideas and looking for additional responsibilities and challenges in the workplace (Yadav, 2020). Engaged employees also embrace teamwork and collaborate with other employees to complete tasks on time and be innovative to enhance the organization’s performance. They also have a positive attitude to their work and are not offended when corrected for making mistakes.

Conclusion

Compensation is one of the factors that influence work turnover. If employees are not compensated appropriately, the likelihood of quitting increases, and their productivity lowers, hence affecting the organization’s overall performance. Organizations, therefore, need to use various job evaluation strategies such as the classification method, ranking method, and factor comparison method. The ranking method is the most appropriate job evaluation method because it considers the employee’s contribution to the organization in terms of knowledge, skills and capabilities, the complexity of duties and responsibilities and time invested in completing tasks. It is also important to look out for signs indicating whether employees are engaged or not to make necessary adjustments on the compensation strategy to boost engagement.

References

Garabato, N., Gardner, J., & Nyce, S. (2018). Global developments in employee benefits. Oxford Scholarship Online. https://doi.org/10.1093/oso/9780198827443.003.0012

Livy, B. (2020). Applying conventional job evaluation techniques—Quantitative. Job Evaluation, 72-97. https://doi.org/10.4324/9780367351793-5

Yadav, S. (2020). Determining the relationship between employee engagement and employee satisfaction: A review of literature. International Journal of Psychosocial Rehabilitation, 24(5), 5038-5048. https://doi.org/10.37200/ijpr/v24i5/pr2020211

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Compensation and Benefit Recommendation

Assignment Content
Scenario: You are the HR consultant to a small business employing about 40 people. Currently, the business offers only 5 days of vacation, 5 paid holidays, and legally mandated benefits such as unemployment insurance payments.

Write a 700- to 1,050-word consultation report on compensation and benefits, including the following:

Discuss with the business three job evaluation methods utilized to determine compensation strategy. Include the advantages and disadvantages of each method.
I recommend that the business use one job evaluation method to determine compensation strategy. Include your rationale for the recommendation.
Recommend a minimum of seven benefits the business should offer. Include your rationale for the recommendations.
Explain what signs the company might look for to know if employees are engaged.