Seneca College HRA 840: GCC Hamilton Benefit and Retirement Plan

This report, prepared for the HRA 840 course at Seneca College, outlines a comprehensive benefit and retirement savings plan for the Great Canadian Company (GCC) in Hamilton. The report begins by describing the total compensation philosophy, identifying goals for benefit and retirement plans, and proposing a benefit plan design, while also confirming the available budget and employee eligibility criteria. The second part of the report delves into the retirement savings plan design, selecting benefits carriers, and determining the retirement savings plan funding approach. Furthermore, a detailed communications strategy and tools, including a plan website, are developed to ensure effective implementation and employee understanding. The analysis covers market rates, employee performance, and budget considerations, with recommendations for compensation strategies, retirement plan design, and communication strategies to support GCC Hamilton's business objectives. The report emphasizes the importance of a well-structured compensation policy, including the design of a retirement savings plan, enrollment strategies, and the role of communication in the success of the plans.

Running head: HRM
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Name:
Institution:
Date:

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Part A
Head Hunt Consulting
1 Main Street, Ontario Canada, 901210, Hamilton
© 555- 234-3345
E-mail; headhunt [e-mail]
Dear Sir/ Madam
As highly skilled human resource consultants in Hamilton Ontario, we would be pleased to
offer our expertise in employee compensation program and management. Our experience
aligns well with the qualifications that you are seeking as a company for great consultancy. In
particular, as lead consultants for various unions and companies relating to specified projects
on compensation. We offer great services on employee (Açıkgöz, Uygurtürk, & Korkmaz,
2015).
I am certain that as a consultancy we will offer great value addition to your organization
compensation policy. With more than 15 years of experience in Human Resource
management, we are adept in compensation strategies, documentation and benefits to the
administration.in this report we are going to ;
1. Describe the appropriate compensation strategy and philosophy for the company
2. Identify the goals and objectives of having a well planned retirement savings plan.
3. Propose a well-designed benefit plan for both the employees and the company
4. Confirm the benefit of a planned budget and the eligibility of each employee.
The recommendations for a great compensation plan are;

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a. The company should use the market rates to determine the pay increases as a
compensation policy. According to listed surveys, consider the annual average
increase of compensation for the entire Hamilton area at between 2.7%-3.0%. this will
ensure that that the company is keeping up with the industry averages and is staying
competitive with other organizations compensation policies (Buffa, & Javadekar,
2018)..
b. The company should also stay informed on the market conditions and the continued
market changes. The company should make sure that the market is following the
projections and has made adjustments as the market conditions indicate.
c. Award increase based on the employee performance. Instead of awarding on a flat
average across the board, the company should consider rewarding greatly the top
performers with a higher than average increase and low performers a lower than
average increase in compensation. This will enhance increased performance also. It
will ensure that the top performers in the organization are compensated above the
average market requirement (Daniel, 2015)..
d. Taking into consideration of the impact of the organization budget. To get the finance
department on board, the compensation strategy should take into account the
organization goals and objective. The market salary data should support the
recommendations for increase or decrease in adjustments.
e. The final recommendations is that the company should consider using compensations
consultants more and more during a compensation planning project due to various
questions that arise in the process of getting an appropriate compensation plan
(Dreassi, A., Miani, & Paltrinieri, 2017)..
Identify the total compensation philosophy for your company and the specific goals for
having a benefit and retirement savings plan

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The compensation system is based on compensation. Moreover, in many companies, iodine
compensations often understand incentive cash rewards: bonuses, bonuses, etc A definition of
compensation payments is given. "Compensation payments - supplementary payments and
allowances of a compensatory nature, including for work in conditions deviating from
normal, work in special climatic conditions and in territories exposed to radioactive
contamination, and other compensatory payments (Ganotra, & Niranjan, 2018)..
Compensation - cash payments established for the purpose of reimbursing employees for
costs associated with the performance of their labor or other obligations stipulated by law. In
Labor Code indicates in which cases compensation should be established, which are
mandatory:- for using the employee’s personal car for official purposes;- for the use of
personal property of the employee;- when moving to work in another locality;- donor
workers.
In the literature there are definitions of compensation policy:
Compensation policy of the company is a set of all remuneration used by the organization.
Within this system, there is a rather important division into internal and external rewards.
Compensation policy is a tool to regulate the compensation system (incentive system). It sets
the framework for the compensation system, thanks to which it becomes possible to develop
various kinds of procedures and mechanisms: the formation of basic salaries, the formation of
payroll funds, etc.
Summarizing all the definitions, under the compensation policy we can understand the
totality of the employee remuneration system, depending on the strategic and personnel
policy of the company (Dunstan, & MacEachen, 2016)..

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Many practitioners and theorists in the field of personnel management confirm such a feature
of the compensation policy as its indispensable presence. Even if the company did not
specifically engage in the development of a compensation policy, no one developed special
norms and principles, rules and forms, no one drew up this with the help of documents - the
compensation policy still exists and ultimately determines the result and effectiveness of
employees, their satisfaction with the relationship with the employer and company.
Importance of a good compensation policy
The importance of developing a logical and transparent compensation system is difficult to
overestimate. At a minimum, it regulates the compensation system, helps streamline various
payments and incentive procedures, and at the very least - creates a feeling of trust, company
employees, and helps regulate their activities. As a rule, a description of all compensatory
procedures is recorded in the wage regulations. In many companies you can meet a situation
where there is a Regulation, but there are no clearly developed and formulated rules and
principles of the compensation policy. Or vice versa: managers thought over the structure of
the compensation policy, but did not fix it in the Regulation. Both scenarios are ineffective
and in the long run can lead to problems of a problem nature: employees do not understand
the principles and rules of compensation payments, which causes rejection and distrust of the
latter, claims about who received more, less, for which, etc. In addition, it will be difficult for
managers themselves to develop compensation payments each month without reference to
principles and rules.
Confirm the available benefit plan budget and employee eligibility criteria
Given the fact that the company constantly changes in its personnel policy: employees come
and go, positions and their responsibilities change. In companies where a compensation

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policy has been developed, fixed in the wage regulations, it is much easier to resolve issues
with official changes and accrual of compensation. Many companies give compensation
issues to the heads of departments, which creates greater objectivity and effectiveness of
compensations due to the fact that it is easier for direct managers to evaluate the contribution
of each employee, in addition, some semblance of order is paid in payments, but for specific
departments, and not for the whole company as a whole.
Part B
Propose the retirement savings plan design
The new superstructure over the pension system will be interesting only in that it will
allow the use of frozen pension savings in case of serious problems. Otherwise, the
Guaranteed Pension Plan will face distrust of the pension system as a whole and poverty.
The best retirement and savings plan is based on the pensions law. A retirement savings plan
can be administered and constructed in various ways. The design is considered due to its
merit and show that different employee enrollment, matching, investments and distribution
options can considerably influence the amount of savings and participation in a savings plan
(Lu, 2018). .
Enrollment
In a retirement plan design, the enrollment is the basic feature in a savings program. It plays a
significant part in determining the rates of participation and the enrollment plan intended. A
retirement savings plan is designed using the automatic enrollment strategy such as this
company or the opt-in strategy. The employees are required to indicate their desire to enter
into the scheme (Suarmiati, Sujana, & Sapta, 2018).

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Participation
The participation of the pension is dependent on the demographics of the company. An
enrollment that is automatic makes the participation a default.
Employment has increased from 50 in 1992 to 75 in 2019; current employee demographics
are:
20s 30s 40s 50plus TOTAL
Full-time (FT) 6 28 20 6 60
Part-time (50% of
FT)
2 7 5 1 15
% single 63% 43% 20% 29%
% married to FT 38% 57% 80% 71%
Salaries: based on a 7 hour day
Average hourly
pay
$13.25 $16.90 $22.50 $32.50
During the formation of the organization’s activities in a trading company, a contractual wage
system was adopted: the base salary (average for the market) plus compensation payments in
accordance with the agreements of the employee with the manager (often verbal). If the
employee has

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Compensation and retirement savings policy functions:
• personnel: attracting and retaining high-level professionals;
• stimulating: maintaining employee motivation through a reward system;
• reproduction: return to employees the invested resources (labor, time, etc.);
• developing: promoting the development of business and personal resources of employees
and the company;
• social: ensuring the social protection of employees (nutrition, health preservation and
promotion);
• controlling: control over the company's costs in the field of personnel incentives.
The structure of the company's compensation policy may be as follows.
1. Definition of goals and objectives, as well as guarantee obligations of the compensation
package in the company.
2. Development of the components of the compensation package.
3. The identification of principles for the development of a compensation system.
4. Identification of those responsible for the implementation of the compensation policy.
A well-designed compensation policy is designed to solve the following problems:
• providing the company with highly qualified personnel (planning, attraction and retention);

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• orientation of all employees to the overall result and company strategy;
• ensuring loyalty and employee involvement, increasing the level of trust in the company;
• increasing the degree of responsibility and initiative of employees;
• ensuring career and professional growth of employees, an individual line of development
within the company;
• systematic, fixed and rational distribution of financial resources of the company.
In the overall structure of the organization, the compensation policy is closely linked to the
strategies and competitive advantages of the organization, helps to regulate the system of
motivation and incentives, ensuring constant effective professional activity of employees.
The compensation package includes: 1) salary, which includes the base salary (in accordance
with the tariff schedule applicable within the company (Njue, 2018).
Recommendations
For larger amounts, another benefit is provided - deductions of more than 6% of
monthly income can be included in an existing social tax deduction. It is limited to 120
thousand a year. It is planned that participants in the system will be able to receive SMS
alerts on the "movement" of accumulated funds. Accumulations in the system will be
inherited on a common basis. Including for the heirs of the children, two forks will be
possible: either immediately withdraw the money by paying personal income tax 13%, or
transfer the funds to their own private pension fund (but the years of investment accumulated
by the parents will not be counted).
A guaranteed pension plan seems to be the final stage in the reform of funded pensions. Thus,
employees contributions to the mandatory funded pension system have been frozen since.

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Now employees contributions to the funded part of the pension go to the current payment of
insurance pensions. At first, the project planned to replace mandatory pension savings was
called "individual pension capital (Vasheghani Farahani, & Najafabadi Farahani, 2017). .
But the "automatic subscription" to the deduction of contributions from salaries to this system
has become a stumbling block. As such, the project was not supported by the president. After
that, a "guaranteed pension plan" appeared. Essentially is the same only without "auto-
subscription", that is, completely voluntary.
Yours faithfully
John Doe- Chief consultant
For : Head Hunt Consulting

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References
Açıkgöz, E., Uygurtürk, H., & Korkmaz, T. (2015). Analysis of factors affecting growth of
pension mutual funds in Turkey. International Journal of Economics and Financial
Issues, 5(2), 427-433.
Buffa, A. M., & Javadekar, A. (2018). Self-Selection in Mutual Fund Strategies. Available at
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Daniel, E. C. (2015). Compensation Strategies and Job Mobility in Fast-Food Restaurants in
Port-Harcourt. International Journal of Management, 6(6), 316-325.
Dreassi, A., Miani, S., & Paltrinieri, A. (2017). Sovereign pension and social security reserve
funds: A portfolio analysis. Global Finance Journal, 34, 43-53.
Dunstan, D. A., & MacEachen, E. (2016). Workplace managers’ view of the role of co-
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Ganotra, S., & Niranjan, V. (2018, September). Frequency Compensation Analysis for Two
Stage Amplifier. In 2018 International Conference on Computing, Power and
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Lu, Y. (2018). The effects of a situated-demonstration-based listening strategy instruction
initiative on the development of EFL listening comprehension skills (Doctoral
dissertation, University of Southampton).
Njue, P. K. (2018). Human Resource Management Practices and Performance Of
Manufacturing Companies in Nairobi City County, Kenya (Doctoral dissertation,
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Suarmiati, N. M., Sujana, I. W., & Sapta, I. K. S. (2018). Effect of Leadership and
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