This letter is intended at justifying the compensation package, incentive plan, and benefits plan for the new financial accountant, Shannon Albright. With an experience of five years working as an accountant, Shannon qualifies as a senior staff financial accountant whose salaries range from $65,000-90,000 (Salary.com., 2012). She is qualified for the position owing to her possession of an accounting degree and a CPA certification (Salary.com., 2012). The starting salary of $80,000 is thus the optimum to offer her because it conforms to the standards and regulations of the accounting profession and is within the budget limit of the company. The relocation costs will facilitate her shifting to our company while the retirement funds will ensure that she works in our company for at least 5 years.
The incentive package comprising of flexible working schedules, social time, and monetary incentives is still within the company recruitment policy and will ensure that Shanoon brings her much needed skills to our company. The incentive plan will ensure that Shanoon decides to join our workforce and not other companies where I believe she has also been interviewed. The bonuses will ensure that she is highly productive in her position and is a marketing strategy as well because she will be motivated to introduce other skilled people to the company (Ward, 2012).
The benefits plan comprising of 401(k) Plans, Defined Benefit Pension Plans, and other plans will help in attracting and retaining her among our members of staff. The benefits are an advantage in the long run because it will save the firm from future recruitments in that position. After all, they will hold her to the position (Allis & McCabe, 2011).
Compensation package
The compensation package of Shannon Albright as the new financial accountant will comprise of the following:
- The Salary will be $80,000.
Other inclusions
Shannon will be entitled to:
- Relocation costs of $5,000 will be paid once.
- Retirement funds for five full years of service of $100,000.
Incentive plan
The job will have a comprehensive incentive plan that will ensure that Shannon is comfortable in her new station and position. The incentive plan will comprise of the following:
Flexible working schedule
Shannon will not have a rigid working schedule because such a schedule is not inspiring enough to increase productivity. She will be allowed to work at her own pace and timing. This will enable her to work during the times she feels she is most productive. This will give her more time for social interaction and still accomplish her tasks at the workplace (Ward, 2012).
Social time
The new accountant will be allowed to join other members of the management of the firm in the monthly social event. This event will be held in the last week of every month and work will end at 4 p.m. The staff members will be served with refreshments and will depart at the time of their choice (Yazinski, 2009). She will also be included in the monthly luncheons during the tax period when the job is very tedious. At the end of this period, the employees will have fun in the form of an outing in which they will be allowed to invite their immediate family members. Part of this incentive also includes a membership ticket to any sports activity choice within the company clubs. During one of the weekends, employees will meet and compete in their various sports of choice and win cash prizes at the expense of the company (Yazinski, 2009).
Monetary incentives
The company will organize monetary incentives that will be modified to meet the precise needs of the new accountant. These benefits will be determined based on the performance of the member of staff. The company will use a balanced scorecard approach to evaluate the employee’s contribution to the success of the company to award salary and allowance bonuses. Shannon will also be eligible for the staff-hiring peck in which employees are awarded for introducing new employees into the company (Ward, 2012).
The company will also award the employee extra bonuses in the form of financial rewards during the tax period. These will be in the form of a shopping voucher where the employee will get free time join their spouses and kids in shopping sprees. This will help the employees to have a stress-free working environment (Yazinski, 2009).
Benefits plan
The job has a lucrative benefit plan that makes it one of the most competitive jobs in the accounting field (Allis & McCabe, 2011). The benefit plan will include several programs, which include:
401(k) Plans and other Defined input Plans
The 401(k) plans help the employees to save for their retirement. In the plans, the worker will contribute from their salaries in the arrangement and the company will save them money on their behalf. The employees will collect this money together with their retirement benefits at the end of their contracts. The employee will also be allowed to other defined contribution plans aimed at saving for the future (Allis & McCabe, 2011).
Defined Benefit Pension Plans
In this plan, the company will pay the new accountant a particular benefit for life starting at her retirement. This will be calculated by the actuarial accountant in the company and will be determined within the first month of the engagement. The accountant will be legible to collect the retained funds earned only after retirement or after attaining the retirement age. If the employee quits the position in the firm before retirement, the benefits gained will be retained by the firm and saved in a trust fund until when she attains the retirement age (Allis & McCabe, 2011). This is aimed at ensuring that the funds serve the purpose for which they were intended.
Employee Retirement structure
The new accountant will be entitled to a favorable retirement package that will be calculated depending on the number of years of service and the contribution of the employee to the company. This plan will ensure that the employee leads a meaningful and comfortable life after retirement (Ward, 2012).
Health and Welfare Plans
The incentive plan also entails a comprehensive health and welfare structure that ensures that the employee’s health is observed. The plan will consist of three health benefits including medical, dental, and vision care. The company will cover the employee together with the immediate family members (Yazinski, 2009).
Multi-Employer Plans
These are benefit plans offered by several companies normally within the same industry to the employees. A board of trustees and the companies’ representatives jointly control and observe the functioning of these benefit plans. The funding employers appoint the trustees while the workers’ unions determine the labor trustee representatives on the board. The plans cover the employees in various areas including health and welfare, retirement benefits, and investment plans (Yazinski, 2009).
References
Allis, R. & McCabe, C. (2011). Motivating and retaining employees. Web.
Salary.com. (2012). Average Salary Ranges for Accounting jobs. Web.
Ward, J. (2012). CPA Firms Use Creative Incentives to Retain Workforce. Web.
Yazinski, S. (2009). Strategies for Retaining Employees and Minimizing Turnover. Web.