With an ongoing increase in unemployment, outsourcing, and globalization, employee salaries and benefit packages are experiencing frequent change. In past, a present, future workplace environment, compensation is a significant factor of choice in the job market for candidates seeking employment. Due to the recession in the economy, employers have been forced to become more resourceful in benefit and compensation packages offered to current and potential employees. Strategic planning has become a major facet in maintaining successful Human Resources Department of large corporations throughout the United States. In this scholarly paper, Learning Team A will provide a comparison of compensation strategies within various organizations. The impact of various compensation methods and benefit programs on employees and organizations will be discussed followed by how salary and benefit administration strategies relate to organizational culture and performance.
American Eagle / American AirlinesThe philosophy at American Eagle / American Airlines (AMR) Corporation is there is more to life then work.
Because of AMR's philosophy the corporation offers a total rewards package that many other companies can not match. Employees are encouraged to take advantage of a number of financial benefits, including an employee credit union, 401(K) plan, where the company will match up to 6% of employee contributions, profit sharing, and incentives. AMR also understands that each employee has unique needs; therefore, the company provides a variety of resources to help the employees and their families, meet their own business and personal life challenges (American Airlines, n.d.).
One of the resources the company provides its employees is called the Employee Assistance Program (EAP). The EAP is a consultation, information and referral service for all employees, their eligible family members and for retirees. This service is designed to help employees identify and use resources, which will address personal and professional challenges.