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Owens & Minor Compensation Strategy

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Compensation & Benefits Strategy for Owens & Minor
Matt Kimball
D01638474
DeVry University
Professor Scott
8/24/2014

Identify an organization with compensation or benefits challenges. It could be an organization with which you are familiar personally or through the media.
Owens & Minor, Inc. a FORTUNE 500 company headquartered in Richmond, Virginia, was founded in 1882 and is the leading distributor of medical and surgical supplies to the acute-care market and a leading provider of healthcare supply-chain management solutions.
In today’s economy companies seek to maintain profitability, attract and retain talented employees, and stay ahead of its competition. These goals require strategic planning to effectively deploy specific purposes …show more content…

Within Owens & Minor incentives such as, a merit increase is one of the compensation programs designed to reward its employees for their performance, but there is an absence of reward for their progress because teammates are only awarded yearly on their anniversary date depending on the grade they receive. A teammate must receive a satisfactory or higher to receive a raise from the company during their appraisal as they reflect on their past achievements and weaknesses throughout the year. The lack of a compensating program that rewards you for progress throughout the year and not only performance offers no motivation to go above and beyond for the company and teammates that are over achievers see no benefit in striving for excellence. Last year, as a teammate myself of the company the increases provided were 2.5% across the board and no higher for the top talents. This year the raises have decreased and are 2% for all teammates regardless, of how well the individual performs on the job the rewards for all are the same which, is not a program designed to allow teammates to reach their objectives. Consequently, it is apparent that these challenges are not solely this company, but many other big corporations that depend on the efforts of their employees such as …show more content…

HR decided that for such a strategy to be created and benefit the employees as well as the company they would need to according to the article organizational excellence, “accommodate individual needs and personal values, but remain administratively practical, ensure that the organization invested its reward dollars where they would produce the greatest benefit – that is, yield the highest possible employee commitment to the company and engagement in work. Invest in their top talents by sufficiently compensating them for their performance and results that would forge a clear link between rewards received and contribution made, while at the same time supporting the organization’s evolving business strategy, which would focus on Internet delivery and personalization” (Slade, 2002, p. 44). But in order to effectively achieve these goals, Microsoft would need a tool that would allow HR to do three things: determine the value employees attribute to various financial and non-financial rewards; understand how those principles varied across employee groups; and anticipate how employees would act given the availability of various reward contributions. Most importantly Microsoft wanted a way to calculate the return on investment by implementing this

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