Rwt1 Compensation System Paper

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Business Research Report Compensation Systems for Manufacturing Organizations Presented to: Director of Human Resources Assessment Code: RWT1 Table of Contents Executive Summary 3 Introduction 4 Research Findings 4 Total Rewards 4 Skill Based 5 Broadband 6 Recommendations 7 Conclusion 8 References 9 Executive Summary I have been asked to evaluate different types of compensation strategies that are available for adoption by our company and give my recommendation to the Director of Human Resources. I have narrowed down 3 options that I feel would be most effective for our organization: total rewards, skills based, and broadband. Total rewards is a method of employee compensation that includes an employee’s wages or base pay and a total benefits package, i.e. retirement plans and child care incentives. Total rewards would benefit the company by improving employee satisfaction, lower employee turnover and increased production quality. The biggest disadvantage would be the company may lose money offering employees benefits they do not want or will not use. Skills based compensation rewards an employee for their qualification and knowledge of their jobs. Pay raises are given as the employees increase their skills. The advantage of skills based is a better trained work staff that has the knowledge to work in…show more content…
This consists of four main categories: compensation, benefits, development and work environment (Kaplan, 2005). Compensation is an employee’s wages, including holiday and overtime pay and incentives such as bonuses (Duchon, 2007). Benefits include retirement plans, child care, and other specialty programs. Learning opportunities and training programs fall into employee development. And lastly programs that enhance an employee’s work environment, for instance job flexibility and employee recognitions (Kaplan,
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