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Compensation, Benefits, Reward & Recognition Plan for V.P. Operations

Compensation, Benefits, Reward & Recognition Plan for V.P. Operations

As part of Blossoms Up! strategic objectives, the President will require the assistance of a competent Vice-President (VP) of Operations who will oversee the expansion. The VP will be the President’s strategic adviser, and senior executive who will be in charge of strategic planning. The VP will also act as an intermediary between senior executives, and managers from the different divisions and is expected to find corporate-wide innovations for all areas requiring improvement (Thompson, 2016). In this regard, the executive compensation package for this role must be aligned to the strategic goals of the company.

Base Range Salary

The national average salary for a VP Operations is $132,153.00, while the average salary in San Francisco, CA for the same position is 26% higher. According to PayScale, experience and geography impacts the pay scale, but the specific employer greatly influences the VP’s salary. Those who have at least 5 years’ experience benefit a median salary of $111,000.00, while those with 10 years’ experience and more receives a salary of around $134,000.00. These estimates are based on PayScale’s questionnaire who among the respondents 70% are men (PayScale, Inc., 2016).

Standard Employee Benefit

Employment benefits are a vital component of the total compensation offered to employees. For most applicants, the benefits package an organization is offering will determine if they accept the job offer or not. Employment benefits are valuable to employees because they serve as protection during “sickness, injury, unemployment and old age and death” (Gomez-Mejia, Balkin & Cardy, 2015, p. 362). Unlike pay and incentives, benefits are indirect financial and nonfinancial compensations designed for employees (Dessler, 2016). Blossom Up! needs a benefit strategy that is in alignment with its general compensation strategy. The benefit strategy will determine the benefit mix, amount, and its flexibility (Gomez-Mejia et al., 2015).

Any standard benefit plan must comprise of legally required benefits and voluntary benefits. In the United States, all employers are required by law to provide three benefits to their employee independent of the number of employees, namely social security, unemployment insurance, worker’s compensation (Gomez-Mejia et al., 2015). Employers with specified number of employees are required by law to provide certain benefits. These benefits include Family and Medical Leave Act (FMLA) and since 2015, health insurance. Employers with 50 or more employees are covered by FMLA and have to offer this benefits to qualified employees. As of January 1, 2015, under the Affordable Care Act (ACA), employers with more than 20 employees are required to offer health insurance coverage to their employees. A standard health insurance includes medical, dental and vision insurance under optional plans such as Health Maintenance Organization (HMO) or Preferred Provider Organization (PPO) (Gomez-Mejia et al., 2015).

Other voluntary benefits that employers offer include, retirement benefit under either a defined benefit plan also known as pension or a defined contribution plan example 401 (k) plan (Gomez-Mejia et al., 2015). Businesses may also offer life insurance, long-term or short-term disability insurance and paid time off such as vacation, sick leave and paid holidays. The organization has the option of allotting employees with a specific amount of vacation and sick leave every year or making employees earned them which either be accumulated or lost if unused (Gomez-Mejia et al., 2015). Blossom Up! must consider the Employee Retirement Income Security Act (ERISA) when developing the voluntary employee benefits ( U.S. Department of Labor, 2009).

References

Biro, M. (2013). Forebs. Five Ways Leaders Rock Employee Recognition. Retrieved from

http://www.forbes.com/sites/meghanbiro/2013/01/13/5-ways-leaders-rock-employee-recognition/#6043c5ee2b99

Dessler, G. (2016). Fundamentals of human resource management (4th ed.). Upper Saddle River, NJ: Prentice Hall. Retrieved from University of Phoenix eBook Collection database.

Gomez-Mejia, L.R., Balkin, D., & Cardy, R. (2016) Managing human resources (8th ed.). Upper Saddle River, NJ: Prentice Hall. Retrieved from University of Phoenix eBook Collection database.

PayScale, Inc. (2016). Vice President (VP), Operations Salary (United States). Retrieved from

http://www.payscale.com/research/US/Job=Vice_President_(VP)%2c_Operations/Salary

Thompson, S. (2016). Houston Chronicle. The VP of Operations Duties. Retrieved from

http://work.chron.com/vp-operations-duties-13282.html

U.S. Department of Labor. (2009). Health Benefits, Retirement Standards, and Workers’ Compensation: Employee Benefit Plans. Retrieved from https://www.dol.gov/compliance/guide/erisa.htm