What are the objectives of compensation programs? The main objectives of a compensation program are to attract and motivate employees to achieve retailer’s objectives and reward them for their effort that they have contributed to the company. In the developing process of a compensation program, the store manager must strike a balance between providing attractive compensation to retain the high quality good employees and the labor costs control. Compensation plans are most effective for motivating and retaining employees if the plan is fair and compensation is base on the employees work productivity that they have contributed to the company. There are several types of compensation plans.
One of the corporate values of this company is to provide an enriching and rewarding workplace for its employees. Its management strives to attain this by focusing to deliver quality services to its staff members through trying to mirror the viewpoint that its customers have concerning the company. It also uses some of its benefits like for example part of its profit to cater for various products such as accident protection insurance, company-paid cancer policy, and employer-paid life insurance for the employees. Providing these products freely or at subsidized prices mean the company focuses not only on attaining benefits but also on ensuring the corporate values are
From the case study, there is a clear feeling that the company cares about customers and employees above all else. Including shareholders. Every employee has a clear understand of their job and do it to the best of their ability. Innovativeness I encouraged and rewarded. The organizational culture profile (OCP) for this company has multiple dimension.
Compensation of employees and job satisfaction are one of the means that organisations can use to ensure employee retention. Compensation such as bonuses, owning shares in the organisation and adequate salaries. The competence of the salary package can be a competition factor for employees in the labour market. The package can be a combination of salaries, shares and bonuses. Job satisfaction allows employee’s autonomy, decision making and more involvement in the jobs that their job functions.
In as much as the economy has increasingly advanced, the importance of excellent talent is becoming a top priority for most organizations. There are major anxieties with businesses when they have to acquire actual talent, retain and develop potential talent for their organization. Being aware that enhance talent within an organization will bring better outcomes. Management should then maintain a competitive benefit over its competition by measuring and tracking the skills and abilities of their workers. Different forms of measurements are achieved to measure the talents of human capital.
They spend countless hours with customers thus they know and understand what they want. Thus predictably becomes easy for employees. Employees are dependent on the success of the company for their livelihood thus ensuring the company success. Employees expect the companies to pay attention to their demands thus involving them ensures the demands of the company are met and success of the company. According to Gerard (2010), Cosco Wholesale Company in United States of America provides the best for their employees including high wages.
‘‘Taylor’s concept of motivation is to institute a system of inequitable pay for workers and a bonus system will create monetary incentives (Reference/web). There are many ways McDonald’s uses to encourage employee’s effectiveness at workplace that is by having programs such as ‘employee of the month’ (Reference website). Besides that, McDonald’s has established an incentive pay system and provide the employees opportunities to earn competitive total compensation when the performance meet goals and bonuses are given to top employees based on their individual and business performance(Reference
Employers can write off administrator costs as a routine business cost. This calls for review by the business to be sure they can cover high reimbursement difference from the plan immediately. The association has increased its underline area. These accounts helps to keep existing staff in the company favor and attract top talent later. .