Compensation plan is a strategy used by business organizations to motivate its workers by use of recognition program. This is done to boost the level of inspiration to the workers. For example, in the compensation plan it is shown that there will be different rewards for the best employee, the best improved and honoring of retired employees. In my new compensation plan for new employment team, the new policy is meant to offer an additional compensation tool to identify performance on the part of an individual worker or team of workers. However, under the policy, University management may contribute up to $1000 in financial or non-financial awards and/or five days of recognition leave in a fiscal year. The new policy is appropriate to classified salaried workers.
The new implemented compensation plan will cover the following policies and regulations, which will be categorized into nine recognition and reward programs. Worker of the Month, Client service recognition, Public Service Recognition, Recognition of continued or better presence/safety, enhanced Productivity/Sales Margin e.g., gain sharing, Recognition of dazzling performance, Honoring Separating/Retiring workers, Project conclusion team or individual Award, thoughts that Make a Difference in worker Suggestions.
The first five recognition program areas are deliberate recognition. These recognition programs are pre-arranged, more often performed ways of recognizing contributions and accomplishments of a team or an individual while the last four recognition programs permit management to give instant recognition or on-the-spot recognition to teams or individuals.
However, with the exception of worker-of-the-Month, each of these program areas has three levels of recognition and rewards. The policy also contains essential sections on the procurement of awards, the taxing of awards, and central Fair Labor values Act propositions for non-exempt workers receiving deliberate awards while all financial awards and non-financial awards of over $100 and recognition leave will be processed through the present Pay Action Request Form. (John 2000).
The first half of the business plan will be geared towards assisting develop, sustain and lastly solid business policy then look at the industry, customers, market and competitors. While, the entrepreneurs have to carry out their preferred business policy during the second half of the business plan, and then execute worker compensation plans, services and products, business and marketing operations should all strongly tie in with business plan.
My pay system will work because I will apply the new policy and ensure that it works out, each organization will be expected to present a written plan that will be assessed by the University Human Resources and accepted by their respective Vice President who may give further instructions to their particular units in setting up plans. The written plan will involve management to illustrate how they plan to use a given program area. It may choose the program areas that best support their mission and organizational objectives. For instance, nine program areas have been designed to give a wide range of chances to identify and reward performance.
For each program area chosen, the management will be required to describe: the objective or goal of the recognition program; the business motive(s) for using a recognition program; the nomination procedure if appropriate; the particular criteria for differentiating the 3 levels of awards; the approval procedure; and the communication procedure. The three components of a total rewards package that would motivate employees to reach peak performance are as discussed below
Each and every organization is divided into different departments; these departments have got different individuals who perform different roles to ensure there is effective running of the organization. Specific and overall objectives to be achieved are set and every employee work hard to ensure he achieves his goals thus there is competition because every one wants to emerge the best since there is a reward for merit pay for the best employee. This would encourage employees to perform their best and achieve peak performance.
Too much work without a break or rest would demoralize the workers, they will not have enough energy to perform but if there is an annual leave employees will get motivated and thus give their best because at the end of it they will have time to rest and regain the energy lost.
Work benefits motivate workers. For instance, a mortgage loan will help retain workers in a given organizations since different organizations give different benefits, they would work tirelessly and reach peak performance.
My compensation plan benefits to the individual as well to the company are as discussed below. This formal compensation plan will assist the employers ensure that workers are contented, and that the internal and external fairness are maintained, and also the management sustains control over reward costs.
This compensation plan however will help keep core workers, encourage permanence, and attract top talent. An efficient compensation plan covers the following events: job analysis and assessment, job pricing, pay banding, worker classification, and pay increases. In order to ensure that this compensation plan benefits both the workers and the company, analysis of the sales plan is required to substantiate that the rewards sales workers receive are proportionate for their expertise and efforts sets exploited to achieve their sales objectives. (Guillermo 2003).
Reference
Guillermo, R. (2003). Strategic plan and management. Indonesia.
John, B. (2000). Job analysis and performance appraisal, New York: University of Delaware Press.