Compensation Package Proposal Free Essays

Compensation is a very important aspect of the employee of a company; it seems important a well-defined compensation package is in place. â€Å"Compensation involves direct cash payments, indirect payments in the form of employee benefits, and incentives to motivate employees to strive for higher levels of productivity. † (Cascio, 2010, p. We will write a custom essay sample on Compensation Package Proposal or any similar topic only for you Order Now 413) It seems a compensation package will be different for each different career type but must always meet the needs of the employees and the organization. A proposal for a total compensation package for the information technology employees of Wal-Mart needs to be written. This proposal will include a description of the job group, a salary table for specific positions, a placement policy, benefits packages, and the way the plan is implemented by the organization. Job Group Information Technology Employees Information technology seems to be a field with rapid growth; according to Taylor (2010), careers in the IT world expects to grow 32% by 2018. It appears every company has some kind of computer related work involved to help the company succeed. â€Å"A strong background in the technical fundamentals of computer science and programming languages like Java, Microsoft. NET, and C++ are obviously important for success in the field. But a creative brain and an ambition to stay updated on the newest advances in the field — whether through books or training — are also key† (Taylor, 2010, para. 4). Information Technology also involves strong communication with others, creativity, the ability to work in a team, and a strong undergraduate background. Although much knowledge is need to succeed in IT, it appears the pay scale and advancement opportunities will pay off. Positions within this area of work include cyber-security, graphic design, technology architects, web page developers, and software engineers. Wal-Mart seems to be in search for technology employees. Technology is use in Wal-Mart to run the global market. Wal-Mart (2012) states that â€Å"[The company] is focused on developing new technologies to transform the way customers’ shop†¦we’re helping to improve operations, back-room systems and Wal-Mart’s world-class logistics network, speeding products to customers across the globe† (para. 1). Wal-Mart’s technology department makes up of 3,500 employees in the United States and 2,000 globally (Wal-Mart, 2012). Wal-Mart (2012) states that a career in the technology department of the company will offer an employee exciting projects, investments in new technology, training, development, and exposure. Wal-Mart seems to offer careers such as Software Quality Engineers, Sr. System Engineers, Software Developers, and Project Managers. Salary Table This salary table is created for the job group and specific positions offered by Wal- Mart. To determine where an employee would fall within the salary category, the guidelines are list below: Minimum- This is the entry level, this means the person fulfills the minimum job requirements. Level A- The employee has the experience and knowledge to master most of the duties in an independent manner. Usually, employees who fall in the Minimum and Level A stage are in their developmental phase because they are still learning. Level B- This employee is highly experience and his or her level of productivity exceeds the job requirements. Employees whose salary fall in an Level A and B are in the maturity phase because they have mastered the skills. Maximum- The employee is continuous producing results that are above the requirements. Employees in the level B and Maximum are in the leadership phase. They have demonstrated superior leadership skills and strong commitment to the organization. ProfileSoftware Quality EngineerMinimumLevel ALevel BMaximum Entry- Level $44,497$49,036$54,023$58,869 Mid- Level$54,498$60,978$68,095$76,144 Senior- Level$70,429$78,825$88,047$96,980 ProfileSystems EngineerMinimumLevel ALevel BMaximum Entry- Level$46, 419$50, 843$55,702$62,267 Mid- Level$56,277$62,815$69,996$77,381 Senior -Level$69,723$77,109$85,221$94,213 ProfileSoftware DevelopersMinimumLevel ALevel BMaximum Entry- Level$41,844$47,393$53,488$59,942 Mid- Level$54,916$62,019$69,821$78,016 Senior- Level$71,549$79,009$87,202$95,965 ProfileProject ManagerMinimumLevel ALevel BMaximum Entry- Level $42,248$50,143$58,815$68,409 Mid- Level$57,560$66,878$77,113$88,150 Senior -Level$70,110$79,759$90,356$102,019 Placement Packages Proper compensation is essential for members, staff, and organization so that it is a field of education and professional title of Employment Placement Specialist. Often times there can be an imbalance of effort in the workplace; qualified candidates need to be met with sufficient recompense. Pay structures can vary by hourly wage, tier, grade, salary or levels. Wal-mart’s employee compensation will be set at hourly rates depending on beginning and intermediate experience level and transition to salary for at the junior and senior levels. The range of experience with respect to compensation is as follows Beginner Zero-Two Years of Experience; High School Diploma or GED IntermediateTwo-Five Years of Experience; High School Diploma or GED; previous work experience; on the job experience Junior Five-Ten Years of Experience; High School Diploma or GED; College Degree; previous work experience; on the job experience Senior 10+ Years of Experience; High School Diploma or GED; College Degree Master’s level; previous work experience; on the job experience Compensation ranges will be discussed during interview process. Once a candidate is select, a definite wage will be set for beginning and intermediate positions. For junior and senior level a series of predetermined work related questions, including levels of education, work experiences, and qualifications will determine the salary offered. Employees will receive medical benefits and bonus or merit packages. Compensation levels and packages will be present to executive staff managers for approval or change, and incorporate necessary changes. In addition communication with HR is necessary for successful implementation and effective monitoring of process along with proper literature. Benefits Package As with any organization, Wal-Mart provides their employees with benefits packages that suit the needs of those who are involve. Some of the most popular benefits are those indirect and not of monetary value the way a salary or hourly pay is. Some of the more popular benefits are insurance, overtime, leave, flexible timing, and retirement. These options are more widely offered because of the long- term benefits of job stability and employee retention. When an employee offers a benefit that they may use in the future or take advantage of more often he or she may be more likely to appreciate his or her position. Perhaps the most important indirect benefit that many people take advantage of is insurance. By having coverage through their employer an individual would not have to worry about finding a third party and paying more for health care costs. â€Å"Insurance coverage, for instance, is often terribly expensive, so the company that offers medical and/or life insurance to employees as part of its benefits package is bestowing significant savings on those employees and their families† (Reference for Business, n. d). If Wal-Mart were to offer their full- time employees coverage that was affordable and widely accepted it is believe that many of their employees would have a better experience with their jobs. Although benefit packages, direct or indirect, are offers to employees as a positive incentive they can create obstacles when accepted. For instance, if an employee considers salary, exempt, they are not required to be paid overtime even if he or she has worked the hours. This might cause a problem between the employee and management because he or she are being overwork for no pay. Being paid overtime considers an indirect benefit because many employees, as with Wal-Mart, are not expected to work more than 40 hours a week. This same kind of issue may arise with an employee choosing to use the company insurance, which is a benefit for him or her. They may have needs, not covered in the policy that provides, and still have to pay more out-of- pocket than expected. The best way to avoid issues with indirect compensation is to be sure everything is explain, in writing, to the employee so that the employer is not at risk in the future of acquiring a fair labor law suit brought upon him or her. Wal-Mart should create a detailed benefits package for their employees to read and sign in acknowledgement. This will ensure that everything is understood and that all questions regarding the indirect compensation are asked and addressed appropriately. Conclusion Compensation was once the foremost attraction to a workplace. People traveled the traditional roadways of education with the ultimate destination of a first-rate job in their field with best reward. Today with elevated unemployment rates, a world crammed with terrorist, cancer, and other illness invasions, natural disasters, and plain old trigger happy citizens; qualified, unqualified, and over qualified candidates alike are seeking two for the price of one. A job to make ends meet while enjoying life and all its positive proffers. Whatever the reason is necessary that organizations meet the needs of its qualified candidates with fair and appropriate compensation be hourly wage, tier, grade, salary or level. Employees which are fairly compensate perform better in the workplace and in their personal lives. Work is not man’s punishment. It is his reward and his strength and his pleasure. † –George Sand ? References Cascio, W. (2010). Managing human resources (8th ed. ). New York , NY: McGraw-Hill. Taylor, M. (2010). The wall street journal. Retrieved from http://online. wsj. com/article/SB10001 424052748704358904575478133397664058. html Reference for Business ( n. d). Employee benefits. Retrieved from http://www. referenceforbusiness. com/small/Di-Eq/Employee-Benefits. html Wal-Mart (2012). Retrieved from http://careers. walmart. com/careers-in-technology/ http://humanresources. about. com How to cite Compensation Package Proposal, Essay examples