Week 1 Project

 

Instructions

Review the following lectures:

• Strategic Compensation and Human Resources
• Salary Structure

Project

The project assignment provides a forum for analyzing and evaluating relevant topics for this week on the basis of the course competencies covered.

Project Title: Total Rewards Program to Hire and Retain College Graduates

Scenario:

You have been hired as the compensation and benefits manager for a company that has been in business less than a year, and its main competitor is Google. The company has one hundred employees, but the executive team realizes that new talent is needed in order to have innovative and cutting-edge ideas. You have been asked by the executive team to develop a compensation plan to attract college graduates. Keep in mind that many of these potential employees are from Generation Y. The objective is to build a solid foundation based on the business strategy (past, present, and future). Implement a compensation plan that aligns with the company’s mission and search for new talent.

Tasks:

Complete the following tasks:

• Analyze the compensation structure for Google.
• Evaluate the differences between Google’s pay structure and other organizations.
• Compose a total compensation and rewards program for the employees.

To support your work, use your course and text readings and also use the

South University Online Library

. As in all assignments, cite your sources in your work and provide references for the citations in APA format.

Submission Details:

• Create a 2-3 page Microsoft Word document.
• Name your file as SU_HRM5040_W1_Project_LastName_FirstName.

Strategic Compensation and Human Resources

In previous centuries, leaders were only concerned with the bottom line and pro�t margins for their
organizations. Employees were merely a necessity to accomplish the organization’s objective, and the
employees’ welfare or retention was not a factor in the day-to-day operations of the organization.
With an increase in technology, virtual of�ces, outsourcing, and other industry-speci�c changes,
leaders began to recognize the importance of maintaining a competitive advantage. Leaders realized
that an adjustment had to be made in the compensation structure if the organization intended to
retain the most quali�ed employees. This new way of thinking began in the early 1980s. The torch
has been passed on to the human resource (HR) department. To understand compensation, one must
realize that it is based on multiple factors. While intrinsic and extrinsic rewards are merely a
fragment of the core compensation plan, it is important for HR professionals to know what is
required to motivate employees. Intrinsic rewards are geared toward the individual’s psychological
state, while extrinsic rewards are given in the form of monetary and nonmonetary rewards. It is
important to understand that the compensation strategy is tied to the competitive business strategy.
Thus, the responsibility of acquiring and retaining the most quali�ed employees has been assigned to
HR professionals, and they must have vast knowledge of the organizational objectives, business
necessities, and strategies in order to hire the most promising employees, while providing the
employees with a competitive compensation plan.

How Is Compensation Determined?
Review each icon to learn more.

Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapter:

Strategic Compensation

From the South University Online Library, read the following articles:

The Impact of Compensation and Promotional Opportunities on Employee Retention in
Academic Institutions: The Moderating Role of Work Environment
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=125083531&site=eds-live)

Goal Commitment
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=bth&AN=43595890&site=eds-live)

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https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?direct=true&db=bth&AN=43595890&site=eds-live

Salary Structure

Employee compensation will ultimately be a managerial decision. As a line manager, your focus will be
on the broader issues of production, revenue, and competition; however, the rate at which employees
are paid—and why—will be an important factor in sustaining high levels of production, revenue, and
competitive advantage. In making these decisions, line managers and HR professionals (and in many
cases the compensation specialist within the HR department) must work together in order to reward
employees on measurable accomplishments and effectively communicate how the measured
performance led to the resulting compensation decision.

The HR professional is tasked with ensuring equity in terms of the salary structure. To do so, the
individual must be knowledgeable of the following pay options: seniority and longevity pay, merit pay,
incentive pay, and person-focused pay. Seniority pay rewards employees with an increase in pay for
being on the job for a speci�ed length of time, while enhancing their skills through training/seminars,
education, and on-the-job training. Employees receive merit pay on the basis of their performance.
Incentive pay is awarded when an employee meets a particular goal for the organization. Lastly,
person-focused pay is based on three guidelines: pay for knowledge, skill-based pay, and
competency-based pay. In addition, there must be �rm policies in place, and salaries should be tied to
job descriptions and performance evaluations. By doing so, the HR professional creates an equitable
pay system to attract and retain employees in accordance with the organization’s business objectives.

Compensation Strategy

Bene�ts

Total Rewards
Review each tab to know more.

Description: The organization’s compensation strategy should be competitive and within budget.

Example: Salary, incentives (monetary or nonmonetary), and bene�ts.

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Work Life

Monetary Incentives

Nonmonetary Incentives

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Additional Materials

From your course textbook, Strategic Compensation: A Human Resource Management Approach,
read the following chapters:

Traditional Bases for Pay: Seniority and Merit

Incentive Pay

Person-Focused Pay

From the South University Online Library, read the following articles:

The Development of a Model for the Distribution of Merit Pay Increase Monies for Municipal
Agencies: A Case Study
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=eue&AN=90248814&site=eds-live)

A Framework for Compensation Plans with Incentive Value
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=eue&AN=24237460&site=eds-live)

Is It Worth It to Win the Talent War? Evaluating the Utility of Performance-Based Pay
(https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=pbh&AN=11788018&site=eds-live)

Winning Support for Organizational Change: Designing Employee Reward Systems That Keep
on Working (https://www.thecampuscommon.com/library/ezproxy/ticketdemocs.asp?
sch=suo&turl=http://search.ebscohost.com.southuniversity.libproxy.edmc.edu/login.aspx?
direct=true&db=rch&AN=20342560&site=eds-live)

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