Assignment 2: Compensation Plan Outline
Due Week 8 and worth 300 points
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 compensation 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:
- This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow SWS 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.
THIS IS MY FIRST ASSIGNMENT TO COMPLETE THE ONE ON TOP
Description of Google Company:
Google is a worldwide, traded on an open market association worked around the organization's enormously leading web index. Google's different undertakings incorporate Internet investigation, distributed computing, publicizing advances, and Web application, program and working framework improvement. It is an American global innovation organization that has some expertise in Internet-related administrations and items, which incorporate web-based publicizing advances, web crawler, distributed computing, programming, and equipment. (Scott, 2008)
Compensation strategy at Google:
Pay structure alludes to a system that evaluates distinctive employments, gathering similar kinds of occupations together, and characterizes formal pay structure for pay just as pay. The vast majority of the associations are created formal pay structure inside the association to viably oversee capacities identified with the installment of essential compensation and remuneration. The present remuneration and advantages structure of Google incorporates pay board and distinctive apparatuses to give benefits that are stock-based pay, money occasion reward, pay climb, and value motivator for administrators. Alongside this, the formal pay structure of the organization incorporates distinctive measures to rewards their representatives to hold and persuade existing gifted workers.
Google offers a focused pay program to their administrators and non-officials representatives to give prizes, pay, and advantages. To provide remuneration and benefits, Google has built up against a pay board of trustees inside the association as a significant aspect of human asset office that sets parameters for pay increment, rewards, and stock honors. Under this program, the organization offers 10% climb in compensation and $1000 money occasions reward amid the Christmas seasons the motivations for those non-official representatives, who performs better. The hill in the pay of all representatives comes as a piece of aggressive pay plan of the organization to compensate the best entertainer. Alongside this, Google offers stock-based remuneration and value grant programs under the pay intend to draw in new workers and hold existing capable representatives.
Best practices applied by Google:
Google can inspire people and to keep the employees consistent in their work. It promotes and supports flexibility, unlike many other companies which make the work environment strict. Google also helps and encourages diversity which means it gives a chance to women to work and show what they are capable of as well as Hispanics. It listens and responds to all the queries and adapts. Google has been known to encourage development and to stay updated according to the new inventions. It offers excellent and unique benefits to all the workers; it also creates a culture of empathy towards all the people related to it.
Compensation-related challenges faced by Google:
There is an issue distinguished identified with estimating likeness of overwhelmingly male and female occupations. This is an outstanding issue with the pay approaches of Google. It is because the wages in Google are not comparable with its fixed remuneration. Likewise, there is no concurrence on the limit of the present place of employment assessment strategies that are utilized to assess the occupations. Google looks some different issues because of remuneration strategies, for example, a measure of practically identical buildup cost for businesses, decrease in openwork doors for ladies and so on.
Analysis of how Google applies compensation practice to determine the positive and negative impact on the company and its stakeholders:
Google's remuneration system is exceptionally focused contrasted with the pay techniques of contending firms. The organization gives high pay rates, together with thorough motivating forces and non conventional benefits. Monetary and moral motivating forces are given. What's more, the organization provides benefits like restorative protection, retirement annuities, free suppers, and free utilization of activity gear. Practically, Google's human asset the executives have prevailing concerning the pay technique since it adequately draws in exceptionally qualified brilliant and fantastic workers. Individuals see Google as a standout amongst the best work environment.
Google's remuneration framework has every one of the advantages you would expect from a fortune 500 association, for example, medical coverage projects and retirement designs. (Keller, 2011) Google separates itself from the challenge by offering administrations and optional advantages that are not standard. These administrations incorporate liven, for example, representatives are permitted to bring their pets at work and administrations like transportation to get and drop off the workers to home. Google has confidence in a fun, casual condition since it prompts increasingly drew in, upbeat and gainful workforce and they have actualized various practices that mirror this belief system.
Laws, labor unions, and market factors impact Google’s compensation practices:
Numerous laws can influence Google's Compensation practices; these incorporate; work laws, wellbeing laws, segregation laws and so on. It is significantly increasingly complex for a worldwide brand like Google since it needs to submit to USA laws and controls as well as by the laws relating to every single other nation in which it works together. Google has numerous areas all through the world and with the steady achievement the organization creates, it just keeps on growing more, Google has assembled 70 workplaces more than 40 nations. (Noe, 2006) Laws can affect Google through controls in business practices. As our content clarifies that, “business laws are basic to keep up a parity of intensity among representatives and the business.”
Examples of the laws that affect Google are the lowest pay permitted by statute, extra time pay, and kid work arrangements. Association works are not huge aficionados of innovation organizations on the grounds that these don't ordinarily have association portrayal, Google, for instance, does not have any association portrayal, in actuality most innovation and data organizations, for example, Facebook or Apple are not unionized either which may appear to be a terrible thing for individuals who bolsters the association work. Not being unitized not a terrible job on account of Google that gratitude to the organization accomplishment as leaders the industry, they are equipped for spoiling their representatives with more advantages and extravagance comforts that association specialists can even dream of, so an association isn't generally significant.
Another example is that market factors likewise affect Google, particularly in a focused market. Since we do live in the data time, numerous different organizations rival Google, for example, Yahoo, AOL, and Bing to give some cases. Google needs to keep up a focused pay structure for their representatives, yet that, they do well, they offer competitive compensations as well as a vigorous advantages bundle that not just incorporate your customary optional advantages such medical coverage, yet much other nonconventional benefits that keep workers cheerful and fulfilled yet above all steadfast. This is Google's specific mystery weapon to hold top ability.
The effectiveness of traditional bases for pay at Google:
The Traditional pay framework has been founded primarily on, status, life span more than on employment execution. Position and life span pay depends on the worker's length of administration; it accepts that representatives turn out to be progressively significant to associations with time. Considering all the procured new abilities and experience worker is equipped for acquiring through time that bodes well. There are cons and stars to the conventional arrangement of pay. A portion of the points of interest are that organizations can accomplish a consistent workforce with little turnover and the procedure is likewise more straightforward to manage since it is an equation based framework. A portion of the detriments is that compensation scale dependent on rank makes it practically difficult to have a high-performing workforce.
Google is perceived for its methodology on remuneration about the execution. Typically, the framework is successful because the more significant part of clients is constantly content with the administrations conveyed by the staff. Through the ongoing methodology, Google has been in a situation to draw in various representatives whom the organization connects with to work with. This gets another embodiment of imagination terms of the manner in which clients are in participation. The further developed a worker is positioned, the better the compensation review. This is a decent sign of endeavors representatives put inside the obligations they are relegated while as yet hoping to be compensated with advancements. The conventional pay base strategy helps Google distinguish the essential talents from the numerous workers and hold them through higher pay. These benefits that are inside the remuneration arrangement additionally help to keep workers inspired towards supporting the organization to accomplish future goals. In the end, the proof is discernible where Google has demonstrated to end up a worldwide organization in the internet-related services and products. Without the best sources, an organization can't remain in a situation to accomplishing any goals. Therefore, it is imperative for any focused business or association to guarantee upkeep of the best performing representatives. Be that as it may, it's anything but a simple way to deal with convinces workers to stay devoted to the association without being paid well. With the representation of Google where they esteem the best chefs who are capable in the definition of choices, different organizations can pursue, and they will almost certainly have their techniques all around accomplished. It further winds up advantageous to the organization allowed that different representatives gain a chance to take in a few convictions from workers; besides, crafted by the organization continues experiencing continuous enhancements.
· Keller, K. L., Parameswaran, M. G., & Jacob, I. (2011). Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.
· Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2006). Human resource management: Gaining a competitive advantage.
· Scott, V. (2008). Google. ABC-CLIO.