Assignment 2: Compensation Plan Outline
(I did a small business plan on my Shape Fitness Center) Assignment 1
Using the same company you researched in Assignment 1, evaluate the company’s compensation plan to determine how it could be improved.
Write a six to eight (6-8) page paper in which you:
- Evaluate the existing compensation plan to determine if it is the most appropriate for your company. Explain your rationale.
- Determine the most beneficial ratio of internally consistent and market consistent compensations systems for the company you selected.
- Evaluate the current pay structure used by your company and assess the recognition of employee contributions.
- Make two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected.
- Evaluate the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and compare them to that company’s major competitors.
- Use at least three (3) quality references. Note: Wikipedia and other Websites do not qualify as academic resources.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required page length.
The specific course learning outcomes associated with this assignment are:
- Evaluate the effectiveness of traditional bases for pay (seniority and merit) against incentive-based and person-focused compensation approaches.
- Compare and contrast internally consistent and market-competitive compensation systems.
- Evaluate the role of benefits in strategic compensation.
- Use technology and information resources to research issues in compensation management.
- Write clearly and concisely about compensation management using proper writing mechanics.
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills,
A few days ago, I posted an announcement that answered questions about Assignment 2. A common question that often comes is, “I can’t find specific information about a company’s compensation plan.”
Keep in mind that a compensation plan is a broad topic. It includes incentives, benefits, and other aspects of an employee’s total compensation. Specifics regarding how much people are paid, pay scales, etc., are not going to be published. But this isn’t the only aspect of a compensation plan. You have to look at what a company is doing in terms of all areas of compensation.
The key to most of the questions in this assignment is making “educated assumptions.” What I mean is, you have to look at what information is provided and make the connections to the concepts discussed in the textbook. It’s like the discussion question that dealt with discretionary benefits. Companies don’t usually pull benefits out of a hat, there is usually a reason most benefits are offered. For example, a wellness program might improve the health of employees, which in turn decreases the claims to the health insurance carrier thereby decreasing the company’s costs.
The key to this assignment is making those connections between what you know about the company and what you know about the concepts discussed in the textbook. As I’ve mentioned before, we have to think like a company executive, not an employee. Of course an employee wants lots of benefits, bonuses, high pay rates, regular increases, etc. But this isn’t reality and we need to address why compensation decisions are made by a company. This requires analysis and connecting what a company is doing to what you know about strategic compensation.
Remember, this isn’t a biography of a company. We’re past that type of essay; rather, we need to apply analysis and make interpretations of the data we uncover with thorough research.