Compensation and Benefits Essay

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Compensation and Benefits HRM 531/Human Capital Management April 23, 2012 Ricky Owen Compensation and Benefits There are two basic components to any compensation and benefits package. The first is how much a person will get paid for services rendered and the second is what type of remunerations are given to the employee from the organization. Compensation is how much money an employee will make either weekly or bi weekly. The amount that is given to an employee is normally based on the skills required to perform the job as well as any degrees held or specialized training required. Benefits are incentives organizations provided to employees that normally included health and wellness packages, savings programs, and work balance. This research paper will look into some of these packages with an emphasis in the advertising sales arena. This paper will focus on salary, approach, and obstacles. Salary Approach Compensation for advertising sales is a combination of base salary with commission. Robb Report is seeking an advertising salesperson that is capable of selling both print and online with strength of selling to advertising agencies. For human resources to determine the correct compensation for its sales team, they need to take into consideration two factors: the first is how to “attract and retain salespeople with characteristics the firm desires (the selection problem)” (Lo, Ghosh, & LaFontaine, 2011, p. 781). And second how to “incentivize the salespeople to undertake desired, but unobserved, effort on behalf of the firm” (Lo, Ghosh, & LaFontaine, 2011, p. 781). Human resources when developing the compensation plan needs to take into consideration the strategic goals of Rob Report and how this relates to the goals of the sales team. There is a need of an explanation of what type of pay structure (whether this is salary
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