Holland Enterprises Essay

A highly regarded human resource consultant has been hired to review, analyze, and revise the compensation and benefit system utilized by Holland Enterprises. This company has 3,500 employees, but has lost 25% of its employees since 2010 because of the compensation and benefit system being unfair and uncompetitive. This revised compensation and benefit strategy will give a description of how an effective compensation and benefit system contributes to organizational effectiveness while explaining the principle components of the revised compensation and benefit system, while finally providing a clear and convincing argument to the managers to increase their compensation and benefit expenses. A compensation system is basically giving employees

Para 1). Benefits are important to employees and so are benefits. There are a lot of people that will consider the benefits over the salary if they are good enough. “Developing a successful benefit program will increase or improve the employees: 1. Appreciation of the interest and desire of the employer to improve the quality of life of each employee. 2. Loyalty and motivation leading to enhanced productivity. 3. Understanding of the value and the cost of each benefit and service component. 4.Understandingof the value and cost of the total benefits program.” (Henderson, 2006) Benefits packages are almost as important as compensation is because some people depend more on health insurance than they do getting paid. If a company has health insurance but the price of the health insurance is outrageous then the person applying for the job may look else where for employment to find a better benefit package. Keep in mind that although these benefits are not directly related to product or service output, “you can expect that they will improve productivity- first, through increased job satisfaction leading to improved quality and reduction in turnover and absenteeism, second, by instilling in each employee a sense of security.” (Henderson, 2006) There is also workers compensation and unemployment compensation that are also important. “Some benefits, such as unemployment and worker’s compensation, are federally required” (Mazurek, n.d. Para 2). Although these things are normally included in the benefits package the employee still has to pay out of their check for them so the employees need to know the costs that he or she will incur during the plan’s upcoming year and request to have the estimated amount taken from their wages into the plan to cover these expenses. The company also pays to fund both the Social Security and