Compensation and Benefits Recommendations
Compensation and Benefits Recommendations
A compensation strategy is an organization’s method of recompensing workers with regard to benefits and salary. Typically, a sturdy compensation method is necessary for attracting and maintaining workers with competent skills, knowledge, abilities, attitudes, and competencies. A compensation strategy sets a business position in the market and could affect the employer’s brand. Organizations get benefits such as high productivity, employee morale boost, top talent attraction, and retaining of employees from a compensation strategy. In this case, I am the HR consultant to a small business hiring approximately forty persons. Presently, the business offers merely five days of holidays, five days of vacation, and lawfully mandated benefits like unemployment insurance expenditures. This is a consultation report regarding compensation and benefits.
Job Evaluation Methods in Determining Compensation Strategy
One of the job evaluation methods is the point factor. This strategy is a frequently utilized quantitative method. The point factor technique breaks down jobs into compensable elements acknowledged in job assessment (Doğan et al., 2014). Then, points are given to the elements, and a payment system is put in place for the rank. Utilizing an internal equity structure like the point factor structure forces firms to count aggregate points for every exclusive job, defining its actual value to the organization. One advantage of the point factor method is that it is the most comprehensive and precise job evaluation approach (Pandey & Leelashree, 2012). Additionally, it minimizes bias and human judgment, and the scales developed in the approach could be utilized for a prolonged period. The disadvantages are that it is costly to implement and time-consuming.
Another method is factor comparison. The technique signifies a grouping of the point methods and rankings. The initial phase is identifying benchmark jobs, which are the jobs that many people with comparable duties in the firm perform, for instance, security guard and stock clerk. Moreover, the firm ought to choose compensable elements and rank every benchmark job after finishing the factor evaluation. The advantage of the strategy is that it is a quantifiable technique with obtainable instructions, it is systematic, and it is objectively easy to explain to workers. The disadvantage is that it is time-consuming since a person ought to choose by assessing the comparative worth of every factor.
The third method is job ranking. Essentially, the approach places jobs on a ladder of their worth to the firm. This is one of the simplest strategies but not suitable for all companies. Notably, every job is ranked comparative to all other jobs, normally depending on a general aspect such as job difficulty. The advantages of this method are that it is easy to comprehend and utilize, saves time and money, and is simple when comparing job performance. The shortcoming is that practically comparing each of the workers is not easy, and as such, it is not valid in big companies. For example, a company such as Apple cannot use this strategy.
Recommended Job Evaluation Method
Job evaluation simplifies salary administration by inaugurating wage rate uniformity (Choudhary, 2016). In this case, the recommended job evaluation method is job ranking because this is a small business. Besides, the strategy is suitable for small organizations that could minimize the position numbers to be revised to not more than one hundred precise jobs. In this case, only 40 people are being employed, meaning there could be approximately 40 jobs. Additionally, the business could reap significant benefits from this strategy. For example, it could save money for the firm. Since the business is small, it is only accurate to assume that it does not have a lot of money, and saving some of it is beneficial to the company.
Benefits That the Business Should Offer
Currently, the business offers merely five days of holidays, five days of vacation, and lawfully mandated benefits like unemployment insurance expenditures. Firstly, it is important to note that since the business is small, it could have a minor disadvantage compared to big firms as far as offering benefits is concerned. However, it should give the benefits to attract and maintain qualified workers. Accordingly, the benefits this business could offer comprise at least twelve vacation days for new employees, a salary increase on attaining specific targets, six considerable sick days, health care benefits, retirement benefits, life insurance, malleable and remote working alternatives, and short-term disability allowance. For example, if employees are temporarily injured, they should receive payments and benefits for a specific period.
The Signs the Company Might Look For To Know If Employees Are Engaged
To know whether the employees are engaged, the company could search for how accountable and dependable they are at work. Emotional devotion to the business is also a sign. Consistently having a great attitude is also a sign; for example, staff being happy while working. Additionally, working the extra mile can tell whether employees are engaged in an organization (O’Donnell, 2021). Cooperating with each other well also shows engagement in the business.
Conclusion
The job evaluation methods comprise point factor, factor comparison, and job ranking. In this case, the recommended job evaluation method is job ranking. Signs showing engaged workers constitute accountability, dependability, emotional devotion, great attitude, more effort, and cooperativeness.
References
Choudhary, S. (2016). Job evaluation: A strategy for compensation consistency. International journal of advanced research in management and social sciences, 5(5), 90-100.
Doğan, A., Önder, E., & Demir, R. (2014). Assessment of Turkish HR professionals on determining the importance of factors in point factor as a method of job evaluation. European Journal of Business and Management, 6(29), 1-15.
O’Donnell, L. (2021). 6 signs of an engaged employee. Great Place to Work. https://www.greatplacetowork.ca/en/articles/6-signs-of-an-engaged-employee
Pandey, J., & Leelashree, M. (2012). A study on job evaluation-point factor analysis in SME’s. Asian journal of research in business economics and management, 2(5), 178-239.
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Question 
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.
Compensation and Benefits Recommendations
Write a 525- to 700-word consultation report on compensation and benefits, including the following:
Discuss with the business 3 job evaluation methods utilized to determine compensation strategy. Include advantages and disadvantages of each method.
Recommend to the business 1 job evaluation method to determine compensation strategy. Include your rationale for the recommendation.
Recommend a minimum of 7 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.