Compensation and Benefits Plan Executive Summary 431

Compensation and Benefits Plan Executive Summary

Due to shrinking local labor market and increasing turnoer rate within SMC Company, the board members of SMC entrust target a comprehensive and progressive requital and benefits plan to the chief executive officer to increase retention in the Company. Traditionally SMC has paid precisely minimum wage and mandatory benefits. The following paper will propose the salutes of the plan, external and internal equity, and creative methods of payment and voluntary benefits for SMC.

Cost Of Plan

In order to address the issues of retention at SMC, we must(prenominal) first look at cost: are we expending too much, or are we not spending seemly in addressing the compensation and benefits needs of our employees. We plan to look at the following areas to see how cost will affect our buns line in profits; current benefits plan vs. optimal benefits package, incentive programs such as bonuses and profit sharing, and last implementation of routine job evaluations to reflect current trends in compensation factors, ranking, and pay grades. Our HR department will be answerable for providing the initial data to support our claim, that we are not doing adequacy retain our employees, thereby we have incurred a high turnover rate. SMC believes the market, overall profit of the company, and employee motivation will drive the cost of change in these areas.



Trade-off in these areas of corporate forward motion will payoff in overall employee satisfaction, which will necessitate to higher profits.

External and Internal Equity

As a growing organization in office supply business, SMC is experiencing a high turn over rate. SMC recognizes it is necessary to retain and motivate a sufficient government issue of our qualified employees. This requires a base pay program that pays competitively by at least three percent or higher than our competitors.

SMC will also to into...

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