Revising Compensation Package: Understanding Organizational Goals - Essay Sample

Introduction

The current compensation package is outdated, considering that it was instituted more than five years before the merging process. After the two companies joined forces, various issues changed, and core values were changed by the compensation plan was not revised to be in line with the latest changes in the company. The cost consideration that can be determined when making a revision of the current plan includes first understanding the organizational goals and the strategic plans. It is critical to include the employees in the decision-making process and have the knowledge on their consideration what they determine as a fair wage. The compensation plan will directly affect their activities in the company, and it is essential to ensure that the plan that will be initiated will satisfy the employees. Another costs consideration to make is the wage level that the business can adopt and still manage to realize the financial health of the entire firm. It is not economical to pay high wages at the expense of financial stability and the future growth of a company. The pay scale of the job titles in a firm should be determined and compared to the industry benchmark levels to ensure that a company is in a position to attract and retain the best talent in the market (Dougherty, 2010). The employees, managers, and any party that is interested in the affairs of the company should agree with the intuited payment plan to ensure that they are working towards the realization of common goals.

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The paid time off (PTO) involves the time that is accorded to an employee after working in a company, and the afforded days can be used to cover leave, sick days, holidays, and vacation time. The consideration that a firm can take when considering the PTO includes whether the employees are happy with the terms that are offered by the current plan. The PTO mainly affects the workers and their relationship with a company. Therefore, taking their views and considering the financial position of a business is critical. When the employees are on leave, they are not offering any service towards the production process of a company, yet they are getting compensated based on the terms in their contracts. However, the amount earned while on PTO should be less than what they get when they are working fulltime. The length of service that workers have offered the company should be considered since it is ethical for the staff members that have worked in a business for longer to have more days as part of appreciating the great service they have offered the business and their loyalty. Additionally, it is important to differentiate between sick leave and vacation time (National Organization for Women, 2011). When employee falls ill, their PTO should not be included in the number of days that they are given for vacation. However, a doctor must be provided to prove that an employee was ill to the extent that they were incapacitated to work.

The current plan of the PTO used by the business is as given below.

Length of Service Number of Days

1+ years 7 days

5+ years 10 days

10+ years 14 days

Keeping employees happy is critical to the success of a business, and this means that the number of days that they are offered for their PTO should be increased. Considering that the financial stability of a firm has improved, there is a need to increase the compensation they are getting while on leave. However, in the future, the rates can be altered if the financial climate worsens. The employees should be notified about these changes and get to understand that the plan being used at the moment can be modified in the future based on the prevailing conditions (University of Minnesota, 2016). The plan given below would be a better one to use. The loyal workers have more days to encourage employees to remain with a company.

Length of Service Number of Days

1+ years 7 days

5+ years 14 days

10+ years 20 days

The excel document attached contains the new plan for the number of days that an employee can take off days. Additionally, it has details on salary improvement and changes in the employees' days off. It is assumed that the economic environment is favorable, and an organization is not encountering financial difficulties. Therefore, it can manage to raise its workers' salary levels without any effect on its financial stability. Several job positions are highlighted, the improved salary level and its eligibility for the OT process. All employees should be allowed to have time off irrespective of their position in a company. They all play a significant role in their capacity towards the growth of a business, and they must be respected irrespective of their level of skills.

References

Dougherty, C. (2010). "Young Women's Pay Exceeds Male Peers," Wall Street Journal. Retrieved from https://www.wsj.com/articles/SB10001424052748704421104575463790770831192

National Organization for Women. (2011). "Facts about Pay Equity." Retrieved from http://www.now.org/issues/economic/factsheet.html

University of Minnesota. (2016). Human Resource Management. https://dx.doi.org/10.24926/8668.0801