Adecco Employee Compensation Strategies

This assignment discusses the need for Adecco to prioritize offering better compensation packages to its employees, including those deployed with client companies. It emphasizes the significance of providing equitable retirement and health insurance benefits, as well as structured and increasing compensation for on-roll employees. By adopting these strategies, Adecco can differentiate itself from competitors, attract high-quality staff, and ensure longer employee retention, ultimately driving revenue generation.

Running head: EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Employee Compensation Standards at Adecco
Name of the Student:
Name of the University:
Author Note:

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EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Table of Contents
Introduction:....................................................................................................................................2
Present compensation plan at Adecco:............................................................................................2
The most beneficial ratio of internal and market consistent compensation systems:......................4
Current pay structure and employee recognition of employee contribution:..................................5
Recommendations for improving discretionary benefits:................................................................5
Employer sponsored retirement plans and health insurance programs:......................................6
Equable retirement and health insurance policies for employees deployed with clients:...........6
Conclusion:......................................................................................................................................7
References:......................................................................................................................................8

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EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Introduction:
The recent trend in the corporate sector of the United States of America is hiring third
party employees to work carry out significant parts of the entire operations. The trend is even
stronger among the multinational companies which hire employees from multinational
consultancies. The aim of the paper is to study the employee packages and post employment
benefits these consultancy companies offer to their employees deployed with their client
companies. The increasing importance of consultancies in the American labor market is evident
from the fact that the leading consultancies are public limited companies earning huge revenue
by serving these clients. The consultancy company, Adecco USA, the American arm of the
Swiss consultancy group, Adecco Group forms the crux of the study (adeccousa.com, 2018). The
consultancy is listed on the Swiss Stock Exchange and operates in several countries. The paper
would delve into the compensation of the consultancy group.
Present compensation plan at Adecco:
The present compensation plan of Adecco for its employees stands on three pillars
namely, finance, human resources and legal. The financial part of the compensation stresses on
the wages or salaries which the consultancy pays to its employees which include employees both
deployed with the consultancy and its clients. The consultancy clearly mentions that it stresses
on paying employees high and legitimate salaries to ensure that it can attract high efficient and
qualified manpower. An evaluation of the existing policies of paying employee high financial
compensation serves four purposes. First, as pointed out, it helps the consultancy attract qualified
manpower (Lu & Gursoy, 2016). Secondly, high pay packages enable the company to retain
employees for longer period because these high packages act as motivating factors for the

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employees. The third benefit is the outcome of the first two benefits. The power of Adecco
attract and retain highly qualified manpower enable the consultancy project a positive and strong
employee image in the corporate sector of the US. This image of the company enables it to
attract more companies from diverse sectors to which it provides staffing services, thus earning
more revenue (Bakker, Demerouti & Sanz-Vergel, 2014). This high compensation strategy is
appropriate for Adecco because it helps earn more revenue and expand its business. The fact is
evident from the presence of Adecco in several countries like the United Kingdom and the US.
The effectiveness of the financial compensation packages of Adecco is also evident from the
clientele the company enjoys from diverse companies. Thus, it can be evaluated from the
discussion that Adecco US offers a legitimate compensation plan.
The second pillar of Adecco’s compensation plan consists of human resources aligned
with its financial compensation packages. The consultancy’s human resource plan stresses on
preventing of employee burnout. The firm instead stresses on the organizations to roll out
innovative salary packages to motivate employees to perform higher (O'Brien, 2017).
The third pillar of the compensation plan of the Adecco is aligning human resources
compensation with the laws of the United States of America. An evaluation of this legal aspect
of the compensation policies of Adecco is evidence of the company’s law abiding nature. The
company follows the minimum wage rate of $ 7.25 per hour as per the latest directives issued
by the United States Department of Labor (dol.gov, 2018).
Thus, it can be evaluated from the above discussion that the compensation policies of
Adecco are appropriate for the highly competitive labor market of the United States. This is
because the country is one of the most competitive economies in the world having a large

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number of employers. That is why there are large numbers of staffing companies which provide
these companies with manpower. Adecco would lose its manpower to its competing
consultancies if it fails to apply an efficient compensation policy like its present policy.
However, upon evaluation of the three pillars one can ascertain that the compensation policies
stress only on the financial aspects of employee compensation (Schuler, 2015).
One can also point out that today non-financial benefits like work-from-home facilities
also play significant roles in enhancing employees’ job satisfaction and retention. Adecco
generally remains silent on these non-financial benefits mandating its employees to follow the
work policies of the organizations where they are deployed. The employers do not provide the
employees of Adecco equable promotional opportunities as their on-roll employees. This results
in lack of job satisfaction which makes these outsourced switch jobs. Thus it can also be
emphasized that Adecco must stress on improving the non-financial compensations of the
employees working under its payroll deputed with its clients (adeccousa.com, 2018).
The most beneficial ratio of internal and market consistent compensation systems:
The most beneficial ratio of internal and market consistent compensation system of
Adecco would differ from industry to industry. The consistent payment packages employee
deputed at multinational companies would be greater than the ones working with smaller
companies. The ratio depends on factors like the size of the companies, the qualification of the
employees and so on. Hence, there is no standard ratio which Adecco has to maintain between its
own internal compensation policies and market standards (Al Ariss et al., 2014).

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Current pay structure and employee recognition of employee contribution:
The current pay structure of Adecco in the United States of America is aligned to
recognize the contributions of the employees while doing their jobs. As pointed out, the
consultancy serves companies of various sizes and from different industries. The company serves
both multinational companies and local companies. An assessment of the employees’ pay
structure shows that the consultancy provides salaries well above the standard hourly rate of $
7.25. It pays more salary to employees working under sales profile than the ones employed in the
back office positions. This is because the sales personnel work under more pressure to fulfill
their monthly targets and experience high levels of job stress. The higher compensation acts as a
motivating factor for these personnel and prevents them from being experiencing burn out
(Hakanen & Bakker, 2017). Adecco is one of the largest international chains of consultancies
present in scores of nations and provides multinational companies with staff. Average monthly
salary recruiters in the US pay $ 40730 approximately. The total payment structure consists of
salary, bonus and even profit sharing for certain high profile jobs. Thus, one can infer from
this salary packages that Adecco pays due importance to the contributions of the employees and
provide them with legitimate compensations as per their job responsibilities (Jackson, Schuler &
Jiang, 2014).
Recommendations for improving discretionary benefits:
The following are the two recommendations which can be made to Adecco in the
direction of the discretionary benefits given to its employees:

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EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Employer sponsored retirement plans and health insurance programs:
Adecco sponsors retirement plans and health insurance programs for its employees.
Reviews show that as far as the retirement plans are concerned, they are lengthy and the
reimbursement procedure is often very bureaucratic. Adecco provides various types of retirement
and health insurance plans like direct deposits, select paid holidays, short-term disability
insurance and affordable medical coverage plan. However, the consultancy remains silent on
details of these retirement benefits. A strong competitor of Adecco in the US, Kelly Services
provides range medical benefits like health insurance and life insurance programs. Another
strong competitor of Adecco, Alp Consulting too mentions about compensations like employee
benefits. However, it too remains silent about the details. It is clear that the competing staffing
companies Alp and Kelly Services offer similar retirement and health insurance plans. Thus,
Adecco must offer better retirement and health insurance plans compared to its competitors to
retain its employees.
Equable retirement and health insurance policies for employees deployed with clients:
It is recommended that Adecco must pay equable retirement and health insurance benefits
to its employees deployed with its clients. The companies often pay more structured and
increasing compensation to their on-roll employees compared to their off-role employees. The
consultancies too remain silent in the case of retirement benefits of these employees. Adecco
should mandate the client companies to offer similar retirement compensations to its employees
whom they employ. This initiative would help Adecco to differentiate its retirement and health
insurances benefits from its competitors. This would enable Adecco to acquire more highly
qualified employees and even steal employees from its competitors.

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EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Conclusion:
The above discussion clearly shows that consultancies should pay attention towards
offering better compensation to their employees. They should ensure that their employees
receive equable payments and professional growth opportunities. They should ensure that the
employees deployed with their clients get equal compensation as the on roll employees of the
latter. The consultancies like Adecco should stress on offering both financial and non-financial
compensations to their employees. The financial compensations employees get can consist of
salary and retirement plans. The non-financial compensation can consist of health insurance
plans and career growth opportunities. These consultancies should ensure job satisfaction to their
employees to ensure longer retention of them. These strategies of employees would ensure long
term generation of revenue by providing talented staffs to their client companies.

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References:
Al Ariss, A., Cascio, W. F., & Paauwe, J. (2014). Talent management: Current theories and
future research directions. Journal of World Business, 49(2), 173-179.
Alp Corporate Group – Services and Offering. (2018). Alpconsulting.in. Retrieved 5 March
2018, from http://www.alpconsulting.in/alp-corporate-group.html
Bakker, A. B., Demerouti, E., & Sanz-Vergel, A. I. (2014). Burnout and work engagement: The
JD–R approach. Annu. Rev. Organ. Psychol. Organ. Behav., 1(1), 389-411.
Benefits and Perks | Kelly Services US. (2018). Kellyservices.us. Retrieved 5 March 2018, from
https://www.kellyservices.us/us/about-us/work-at-kelly/corporate-branch-benefits-and-
perks/
Can raising hourly wages increase employee retention? | Adecco. (2018). Adeccousa.com.
Retrieved 5 March 2018, from
https://www.adeccousa.com/employers/resources/increasing-hourly-wages/
Hakanen, J. J., & Bakker, A. B. (2017). Born and bred to burn out: A life-course view and
reflections on job burnout. Journal of occupational health psychology, 22(3), 354.
Jackson, S. E., Schuler, R. S., & Jiang, K. (2014). An aspirational framework for strategic human
resource management. The Academy of Management Annals, 8(1), 1-56.
Lu, A. C. C., & Gursoy, D. (2016). Impact of job burnout on satisfaction and turnover intention:
Do generational differences matter?. Journal of Hospitality & Tourism Research, 40(2),
210-235.

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EMPLOYEE COMPENSATION STANDARDS AT ADECCO
Minimum Wage. (2018). United States Department of Labor. Retrieved 5 March 2018, from
https://www.dol.gov/general/topic/wages/minimumwage
O'Brien, K. (2017). Employer branding through social Media platforms in financial consulting
companies.
Schuler, R. S. (2015). The 5-C framework for managing talent. Organizational Dynamics, 44(1),
47-56.
Staffing Agency Benefits and Pay | Adecco. (2018). Adeccousa.com. Retrieved 5 March 2018,
from https://www.adeccousa.com/working-with-a-staffing-agency/staffing-agency-
benefits-and-pay/