HRM2001S: Developing an Integrated Benefits and Compensation Plan

This report addresses the challenge of creating a motivational total rewards plan for a company facing changes in its workforce demographics and organizational strategy. As the HR Vice President, the task involves ensuring the workforce receives appropriate benefits and compensation to achieve objectives. The solution begins with forming a team to assess the existing reward system through industry benchmark surveys, evaluation of current reward approaches, and employee surveys to gauge attitudes toward rewards. The integrated benefits and compensation package includes direct compensation (salary, bonuses, etc.) and indirect compensation (paid leave, insurance, etc.). The plan's components are wage/salary, incentives, fringe benefits, and perquisites. Communication of the revised plan involves face-to-face meetings, printed materials, and employee portals. The development of the solution considers internal factors (existing reward practices, organizational structure, stakeholder perspectives) and external factors (market trends, economic environment). This approach is suitable as it considers industry assessment and business goals.

Human Resource Management
NAME OF STUDENT:
COURSE NAME:
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Analysis
How will you ensure the workforce is receiving the appropriate benefits and
compensation to achieve its objectives?
In order to insure that workforce is receiving adequate benefits and compensation to
attain their objectives it is required to form a team that can assess company’s existing reward
system and suggest opinion for improvement. To measure benefit and compensation structure
that is currently offered such teams can conduct industry benchmark surveys, evaluate
existing reward approaches and survey staffs attitude towards rewards to attain informed
insight. Example teams can build focus groups to collect information on efficacy of existing
total reward systems and they can highlight concerns that employees may face related to
benefit and compensation. These focus groups can include management and staffs to voice
issues and queries for reward system and such groups can highlight surveys. Other measure is
to survey industry standards for reward practices so that these can capture information on
effectiveness of reward systems. Additionally surveying employees attitude towards reward
system can highlight added value information to assess effectiveness of reward structures
(Bolander, Snell & Sherman 2015). Like Pay satisfaction questionnaire can be given to staffs
to evaluate attitude towards base pay, pay hike, reward system and administration and
benefits.
Outline your integrated Benefits plan and Compensation package and its
communication
Outline for Integrated Benefit and Compensation package for the company can be:

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The package will include range of direct and indirect compensation like: (Yousaf,
Latif, Aslam & Saddiqui, 2014).
Direct compensation package: this will include financial benefit given to staffs such
as basic salary, HRA, conveyance, leave travel allowance, medical reimbursement, bonus,
PF/Gratuity and will be offered at consistent interval and defined time annually.
Indirect compensation: this will include non-financial benefit for staffs like Paid
leave, transport, medical assistance, insurance (self and dependents), retirement benefit, leave
travel assistance.
The components of Integrated benefit and compensation package will be:
Wage/salary: this will offer steady income to staffs administered individually
Incentives: additional pay benefit beside salary/wages which will be related to
productivity pays, administered individually or for group performance.
Fringe benefits: this can involve benefit given to staffs for long term impact such as
provident fund, gratuity, pension along with short term impact benefit like medical,
accidental aid, health/life insurance, facilities like canteen, recreation reimbursement

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Perquisites: this can be offered to managerial and above levels to encourage
organizational performance and can involve company care, c club membership, stock option
etc.
The revised reward and compensation plan can be communicated to staffs and
managers across all levels by using compelling mediums of communication based on targeted
audience. Like face to face meeting both formal/informal can be considered for direct
interaction (Gerhart & Fang, 2015). These can be supported by printed reward plan
distributed through mail, employees portal to allow engagement and transparency.
Describe how you developed your solution and why it is the most appropriate of your
choices.
The proposed integrated reward and compensation package was developed by
considering Internal influences like evaluating existing reward practice and structure and
need to align change along with organizational demand, surveying perspective of
stakeholders and evaluating organizational structure like autonomy of business units and
staffs (Xavier, 2014). Besides external influences that were considered included evaluation of
market practice and trend and global/ regional context like fiscal, economic or regulatory
environment. This approach is best suitable as it considered industry assessment and business
goals.
References
Bolander, Snell & Sherman (2015). Managing Human Resources, 17th Edition

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Gerhart, B., & Fang, M. (2015). Pay, intrinsic motivation, extrinsic motivation, performance,
and creativity in the workplace: Revisiting long-held beliefs. Annu. Rev. Organ.
Psychol. Organ. Behav., 2(1), 489-521. Retrieved from doi/abs/10.1146/annurev-
orgpsych-032414-111418
Xavier, B. (2014). Shaping the future research agenda for compensation and benefits
management: Some thoughts based on a stakeholder inquiry. Human resource
management review, 24(1), 31-40. Retrieved from
https://doi.org/10.1016/j.hrmr.2013.08.011
Yousaf, S., Latif, M., Aslam, S., & Saddiqui, A. (2014). Impact of financial and non-financial
rewards on employee motivation. Middle-East journal of scientific research, 21(10),
1776-86. Retrieved from: DOI: 10.5829/idosi.mejsr.2014.21.10.21756