Tim Hortons Compensation and Benefits: A Strategic Report

This report analyzes the compensation and benefits strategies employed by Tim Hortons to attract and retain employees. It explores three key indirect benefits: bonuses and raises, retirement benefits, and group health benefits. The report details how these components, including performance-based raises, bonus structures tied to company success, and retirement plans, contribute to employee satisfaction and loyalty. It also examines the impact of these benefits on employee productivity and retention, highlighting the importance of comprehensive compensation packages in maintaining a qualified workforce. The analysis emphasizes the role of health benefits, such as health insurance and disability coverage, in providing employees with peace of mind and security. The report concludes by underscoring the significance of competitive compensation and benefits in fostering a positive work environment and reducing employee turnover. The report cites various resources, including HrCouncil.ca and others, to support its findings.

TIM HORTONS
COMPENSATIO
N AND
BENEFITS
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INTRODUCTION
In exchange of employment, an employee receives benefits, salaries and
wages from the firm which refers to “compensation”. It may include annual salary,
bonus, or hourly wages and benefits like health care coverage, insurance, retirement
savings, etc. Individual firm has their own components and payroll system. In a
professional carrier, working for a company like Tim Hortons, an employee requires
getting indirect benefits from the firm which helps employees get attracted towards
the firm along with holding them towards it. Tim Hortons is an organisation which
deals with chain of restaurants in more than nine countries that requires an incessant
group of working people. This report will discuss three important indirect benefits an
employer can offer to keep up with its employees (HrCouncil.ca).
COMPENSATION AND BENEFITS
Bonuses and Raises: The management system that deal with
employees’ performance management generally plans the percentage of
raises and amount of bonuses to be distributed among employees based
upon employees ratings and performance. For example, employees with
outstanding performance could receive a direct raise in salary of six
percent and gradually decreasing for incompetent employees. Similarly
bonus can be given after calculating the percentile of gross salary of
employees or by dividing the pool of stock contributed to organisational
success. In many companies the incentives are kept for development of
bottom line and incrementing public share value (Mayhew, 2018).
Retirement benefits: This scheme would attract the employees as under
retirement benefit plans, the employers provide employees with income

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when they are no longer able to work. This plan guarantees payment
after retirement. Pension is another way in which an amount of salary is
accumulated for stipulated time period which is calculated after
combining employees service years, salary and age. In many countries
there are registered saving plans that provide exemptions from taxes
which again help in saving money (Mayhew, 2018).
Group Health Benefits: This is one way in which the employees are provided with health
care benefits. Under this plan, employers pay an amount of portion from the monthly
premium plans, leaving the rest amount to be deducted from employees pay. From health
plans sponsored by employers, the premium deducted gets exemptions under pre-tax
schemes. Heath coverage relives the employees from health coverage expense like dental,
vision, accidents etc. Many employers provide employees with short term disability insurance
and as a part of employees compensation offers long term disability coverage that again
makes employees less worried about ill upcoming (Merhar, 2016)
EFFECTS OF BENEFITS AND COMPENSATION
For any company to keep a hold of highly qualified staff is the most
challenging job. Therefore compensation and benefits, although costly,
helps in maintaining organisational success by attracting employees and
infusing loyalty among them. Employers dealing in traditional ways of
providing employees with limited programmes find difficulties in retaining
its staff to the organisation. By improvising additional benefits and
compensation, the productivity may get increased as employees get less
worried about themselves and their family.

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Bonuses and yearly increments make employees work more. Employees
get a piece of mind as their future is secured and thus seems more
satisfied with their work environment which increases work effectiveness.
Insurance schemes and retirement plans avoids them switching over
companies along with feeling a sense of pride over their employers for
taking care of their health and future (Mazurek).

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REFERENCES
HrCouncil.ca. (n.d.). Compensation & Benefits. Retrieved from
http://hrcouncil.ca/hr-toolkit/compensation-employee.cfm
Mayhew, R. (2018). Example of an Employee Compensation Plan. Retrieved from
http://smallbusiness.chron.com/example-employee-compensation-plan-
10068.html
Mazurek, S. (n.d.). Employee Benefits and Compensation . Retrieved from
https://managementhelp.org/payandbenefits/index.htm
Merhar, C. (2016). Examples of Common Small Business Employee Benefits.
Retrieved from https://www.peoplekeep.com/blog/examples-of-common-
small-business-employee-benefits