HR Management-Compensation Essay

The dedicated importance shake offn to honorarium management by HR managers for upgradeing and selecting intellectual capitals of the shaping, yields higher prospective benefits of capture in force(p) workforce. So, same is the situation confronted with this particular given case, in which humankind resource manager is required to utilise Shannon Albright, who is having strong educational, professional and undergo background in finance department.In order to hire her as a financial accountant, manager has prep ard a descent device in regard of fee package by considering internal and orthogonal equities, which are matched accordingly with organizations requirement and resources. Compensation focussing Employees are no longer bounded with the concept of labor who deeds only for feed. Now, they are considered as the intellectual capital of the organization. The more, organization is unbidden to invest for the work d whizz by its employees, the more it earns the profit.It does require salubrious management of compensating employees against their services, abilities, skills, etc. closedownered to the organization through profits packages, inducement figures, and opposite benefits. In order to compensate the employees, organization generally follows a philosophy. This payment philosophy not only deals with the single factor of just pay only. But in fact it defines the fixed pay of an employee which is in congruity with the labor market place, it defines the variable pay which depends on the employee performance and different boilers suit benefits, which include medical care, life and accident insurance, and solitude pay plan that the employee provide get after recruitment in the organization.The organization whose remuneration management is fine tuned with respect to companys budget, internal and impertinent equities of base pay structure are well balanced legal deal have a competitive edge over its competitors in the market because i t results in low employee turnover ratio and the human resource of the organization get out work with boosted motivation of being secured in their current position. It similarly helps to grab expeditious workforce from the market who are considered as good market player.Hence, if the given case is concerned, the HR manager ask to hire an employee named as Shannon Albright as a financial accountant for its organization, for whom he thinks as a best choice for this position. So, before recruiting her, he has to plan a descent stipend package, incentive plan and opposite benefits that will be offered to her in order to cave in her accept this proposal.Compensation PackageThe compensation package for her would be in accordance with the salary survey query of Boston, MA. Hence according to the salary survey research, the financial accountant is acquire base pay of $79,090, $5,140 as fillip and $12,021 other benefits, that makes the overall compensation package of $96,251 year bookly on average (Salary expert, website). Based on this salary data, the HR manager has to offer some attractive offer so that Shannons demands regarding her compensation package are fulfilled.Hence, considering the external equity, manager needs to ponder on the internal equity as well because if it is not concerned it will demoralize the other employees of the organization if the new employee is get more than its jobs worth as per the organization and it mess effect negatively on the new employee when he/she is getting little(prenominal) as per pay structure of the organization which is paying more to other employee but paying less to newer ones.If this case is taken under consideration, than for Shannon, HR manager should offer her little bit more than the average salary of the Bostons line of descent market, and that is about $100,000 total annual salary, which consist of $75,000 as base salary, $12,000 as performance based incentive motivator and $13,000 as overall bene fits given to her by the company. The total salary is to a fault in accordance with companys budget because of their growing business operations, an high-octane financial accountant was necessary to induct.Due to the absence of this set up in the organization, there were many delays in their operations with respect to finance, which were resulting in considerable red to organization on behalf of finance department therefore, this loss will be covered by recruiting her into the organization. As far as internal equity is concerned, organizations most of the salary packages are in accordance with market salary packages. Hence, in this way Shannons salary is in accordance with external as well as internal equity.Incentive designingWhen the organization targets for specific position and emplacement and there is less number of specialists for that position than organization needs to draw an incentive plan which helps to retain lively employees, and attract new employees to the orga nization. The incentive plan is generally developed to recruit such employees whose supply is less but demand is more and it also helps to boost the morale of existing employee to perform better because incentives are directly pro memberal to the performance judgment of the employees.In this case, HR manager has to develop an incentive plan to recruit Shannon into the organization. The incentive plan consists of incentive options. Although, more than above average of the bonus salary is sanctioned to Shannon according to salary data, therefore theses options will make her achieve that bonus. These options include sign on bonus, project based incentive, compensatory leave, and annual leave (HRM manual, 2000). Sign on bonus consists of $5000 written agreement among organization and Shannon, that by accepting this offer, organization will give her this more than amount at the end of the year of her joining.Later on, this payment will be included in project based incentive, which wil l be given to her on completion of successful project at the end of fiscal year, but for the first year of her joining that amount is not more than $7000. Similarly, she will be given compensatory leaves for doing extra work and that leaves will be given to her whenever she desires. In a year, she will be having one month leaves and that will be her annual leave incentive option. Benefits PlanAs per existing policy of the company she will be offered other benefits as well which are mainly focused on wellness and welfare of an employee. The specific portion of the total salary consists of benefits plan, which is aligned to give above mentioned benefits to her. The welfare and health benefit plan include retirement plan, saving plan, medical insurance, dental insurance, etc. (ConocoPhillips, website). A specific portion of funds will be allocated to above mentioned benefits plan. This is the investment that will be done by the company itself for Shannon.Conclusion In a gist, an effici ent compensation management by HR manager produces a rummy competitive advantage over its competitors because if organization is not doing well on its part with respect to development of its human resource, it wont be able to collect good intellectuals in its organization. An organization with strong and efficient workforce can achieve remarkable goals even with limited resources and capabilities. In this regard, the management must accelerate their generosity in giving good compensation packages.