Compensation and Benefits Plan Executive Summary: SMC Company

Essay by rquomsiehUniversity, Bachelor'sA-, April 2007

download word file, 4 pages 4.0

This executive summary will describe the proposed compensation and benefits plan for SMC Company. Due to the ever-changing labor market, SMC Company should provide a comprehensive and progressive compensation package to retain its employees. The competitors are currently offering a better compensation package than SMC Company. The benefits offered at other companies may entice some SMC employees to consider employment elsewhere.

CompensationCompensation is one of the most delicate areas for employees, employers, and Human Resource management. Employees want to make as much as they possibly can while an employer wants the best work for the least amount of money. Most companies' highest cost is in the area of compensation. Compensation is defined as "something, such as money, given or received as payment or reparation, as for a service or loss." ( In the business world, compensation is a combination of salary and benefits a company provides to an employee for the work they perform.

Some employees are paid on an hourly basis, some are paid on an annual salary, and others could be paid on a commission structure. There are some employees that may be paid in a combination of these. Total compensation is a term used more today. Total compensation is defined as the total value of the employee's direct and indirect compensation provided by the employer. ( few of the recommendations for improving compensation will be discussed. All positions will require a salary review. There will need to be immediate action taken to accommodate cost of living increases for the lower paid workers. A company wide "pay-for-performance" program is recommended to help motivate workers to continually improve their work. This program will need to be modified to fit into each department. The program will monitored by Human Resources. There needs to be achievement and recognition certificates provided for...