Per the site, Enterprises Limited is planning to hire a secretary in the human resource department. This position is vital especially due to the managerial undertakings requiring the company to hire and supervise the most expensive organizational asset, the staff. This paper considers the compensation and benefits package for this American public company, where certain terms need to be satisfied. In that case, the organization has a large resource base that requires a high level of efficiency to perform expertly. This can only be achieved if a new secretary is hired and compensation plans along with effective strategies are executed to assure further success. The task is to develop a compensation and benefits package for the new employee, which would be used for the position upon hiring the secretary. My task as the company’s human resource director is to assess the level of compensation required for the position and related to the various employee factors and responsibilities. The secretary’s compensation and benefits package are dependent on the situation along with the level of customer service.
Employee Compensation and Benefits Package
A good employee compensation plan matches the internal and external conditions concerning competition and returns (Hansen, 2007). This happens because the compensation and benefits paid out affect the performance as well as employee motivation, which extends to the organizational goal’s attainment. The secretary is crucial due to the sensitivity of the department managed as employees are responsible for the efficient utilization of the capital. Attributable to this, an effective compensation plan should be set up for the employee to guarantee quality performance and goal accomplishment.
The process involves making the employee understand the importance of successful operations in paying salaries and benefits. To design this package, a critical evaluation of the desired outcomes along with the organizational goals is vital. The compensation philosophy is based on the need to give direct or indirect rewards, an employee’s role, the potential for fulfilling it, and the company’s capacities (Marino & Zabojnik, 2008). However, the most vital aspect in the determination of a compensation package is the ability to accomplish the objectives set for a position. For instance, the secretary to the human resource department is mandated to supervising the staff and controlling operations based on relevant skills and job requirements.
The company might reward the secretary based on several standards. Most importantly, the returns promised by a departmental secretary form the basis of compensation. In this case, Persite Enterprises Limited could target direct financial compensation, which is paid regularly in the form of wages, salaries along with bonuses and commissions. Another form is the indirect financial compensation that rewards an employee through social benefits like leaves, retirement plans, programs in learning institutions, and other service benefits (United States Department of Labor, 2013). However, a non-financial compensation package includes career development plans, recognition, and change in working conditions. In our case, the secretary can be identified as a person with auxiliary duties of ensuring that other staff members operate at the required level of service based on personal judgment, but in the interest of the company’s strategic goals.
This is not an easy task since decisions are influenced by personal opinion hence may result in bias. Therefore, a combination of the different forms of compensation is needed to motivate the position holder. The riskiness of the reward and benefits package is evident when the turnover rate is high thus leading to higher inefficiency. The problem arises when the human resource department does not work at the expected degree of freedom and stimulation risking the company’s resources severely. Thus, several components should receive maximum clarity before a compensation plan is executed. For instance, the secretary’s salary should be in line with that of other employees in managerial positions related to skills and expertise.
Also, the company’s perspective returns should give a clear outline of the compensation package due to the significance of the job description and the impact on profits. However, an evaluation of the market conditions and competitors’ level of compensation is important to ascertain the real value of the position. This determines the financial capabilities of the company to compensate employees and accumulate funds for investments. In this determination, there are several vital factors, such as the growth propensities of the organization, the competency of employees, availability of sufficient business knowledge, overall compensation structure, and future job descriptions (Hansen, 2007). The opportunities promised by an employee, such as a departmental secretary, are wider connections that would improve the company’s operations, effective time management for expansion, ability to discern market variations, and efficacious measures to compete knowledgeably. The staff secretary is required to hire and recruit employees as much as to appraise their performance. The degree of his or her operations directly influences the continued existence of the company. Attributable to this, the secretary’s compensation package must be motivating and sufficient.
Analysis
If the company pays the secretary a base pay depending on the hours worked, it should be noted that reward differential would be observed, which might improve or deter performance. For instance, consider an hourly rate of $20.51 on a 37.5-hour week that would translate to $40,000 annually. The corporation must compensate for this if the returns are appropriate. Exempt employees are compensated on a salary basis with no deductions on the quality or quantity of work done. This is not qualitative as the employee may claim protection hence performing poorly. Also, this category of employees is assessed based on skills, qualifications, and position descriptions. A non-exempt employee can be compensated hourly with provisions for overtime pay. The legal set limit per period, which supposes the calculation of overtime, is 40 hours. Hours worked over and above this limit must be compensated adequately. My view is that since the company is a start-up and may require more time to develop, the secretary’s position should be non-exempt.
Additional Benefits In the Future
The company should consider short-term and long-term benefits for the secretary’s position to implement in the short-range or over a certain period. Short-term incentives might include cash bonuses and stock options after certain conditional objectives are attained. The secretary works under direct supervision, but a certain level of freedom is required to enhance satisfaction. Prerequisites like health insurance and medical plans could be implemented to improve individual performance (Hansen, 2007). Paid vacation time along with holidays attracts skilled personnel to an organization. Other incentives include the company’s car, phone services, and home equipment granted by the organization.
Influence of Government Regulations on the Compensation Package
The government at times sets regulations for compensation for a particular job. This can be in the form of minimum wage aimed at protecting employees’ rights. There can also be a requirement for leave and vacation compensation though its amount may vary. The company is guided by the legal requirement while setting the compensation and benefits package for the secretary (United States Department of Labor, 2013). Therefore, when the benefits are thought to be excessive, the government can order a cut to match the market rewards. The problem with this requirement is that an employee may opt to quit employment if he or she is dissatisfied.
Why the Compensation and Benefits Package Should Be Accepted
The compensation plan should be accepted and implemented since it gives a clear description of the job tasks in addition to the cost incurred by the company. The suggested $40,000 salary matches the current market wage rate. For instance, General Electric, a comparable company, pays $38,540 to the secretary, which is slightly lower. As well, Armour and Company range the basic pay for the human resource secretary at $40,000 (United States Department of Labor, 2013). Based on these facts, I believe my proposed hourly rate of $20.51 on a 37.5-hour week will be motivational enough to guarantee greater productivity from the hired staff secretary.
The Competitive Aspects of the Package in the Human Resource Management Strategy
The competitive compensation aligns with the human resource strategy in that the most skilled labor force will be attracted to the company hence reducing labor turnover. Employees under the management of the new secretary would be prompted to work for the achievement of strategic goals (Rajan & Wulf, 2006). If the secretary had been exempt, the company would not have paid overtime and other bonuses hence finance savings. However, chances of low performance are high increasing the overall labor turnover rate. The proposed package is motivating to the employee thus giving the company a higher quality assurance level. Additionally, this compensation package will assist in reducing employee turnover and optimizing staff productivity, commitment and loyalty in line with the company’s human resource strategy. Moreover, in line with the human resource strategy of recruiting the best and qualified staff for an organization, this competitive wage, and additional benefits will serve as bait to recruit a competent and dedicated secretary.
References
Hansen, F. (2007). Currents in compensation and benefits. Compensation & Benefits Review, 39(1), 6-20.
Marino, A. M., & Zabojnik, J. (2008). Work‐related perks, agency problems, and optimal incentive contracts. The RAND Journal of Economics, 39(2), 565-585.
Rajan, R. G., & Wulf, J. (2006). Are perks purely managerial excess? Journal of Financial Economics, 79(1), 1-33.
United States Department of Labor. (2013). Web.