Management/Human Resources: Response #7
jandreg
RESPONSES1.docx3 PEER RESPONSES (NOT 5)
Each peer response should be a minimum of 100 words, and use a minimum of one academic source (outside of the textbook) to support answer/response.
PROMPT #1: Learning Outcomes:
• Evaluate the relative merits of a variety of human resources interventions such as organizational development, succession and workforce planning, strategic staffing, diversity training, cultural change, and rewards and recognition redesign.
• Demonstrate how to design, develop, and implement effective HR policies and programs.
If you were considering a job offer, which elements of total compensation would be more important to you: base pay, incentives, or benefits and services? Why? What are the implications of your answer for employers seeking to attract people like you to work for them?
#1 Response
When considering a job offer, there are several aspects that are very important for me to consider. For this reason, I wouldn’t simply just look for one element of compensation in order to make my final decision. All of the elements of final compensation need to be considered in order for me to make the best, most informed decision that I possibly can. For example, base pay is a huge factor for me personally. However, this is most definitely not the only determining factor as to whether or not I would accept the job offer. In my future career as a veterinarian, base pay is often combined with a production incentive in some practices. What this means is that as a doctor, you will receive your base salary, no matter what. The production bonus adds to this amount, depending on your performance and how many patients you treat, etc. Having a base salary is important to me, in order to cover for the slower seasons.
Incentives and benefits are certainly important as well, and must be considered alongside the base salary. I once worked for a company that matched 100% on my 401k. That was hands-down the best investment I’ve ever made! To me, this was something very valuable and when considered alongside my salary, this was a great incentive for me to invest! To that end, I have worked for companies that have excellent health insurance coverage, and others that do not. And boy does it hurt your pocket book when you have to go to the doctor without great health insurance! Therefore, health insurance is an important consideration for me personally for any job offer as well.
With regard to employee compensation, most managers are busy asking: "What do I have to pay to?" However, this is not a simple question to answer. A better question might be: "What do I want my compensation package to say?" (Fogleman, 2014). When determining exactly what your business will pay for salaries, it is very important to consider the economic conditions of the particular region that your organization functions. Determining base pay is directly related to the organization’s compensation philosophy. Businesses that take time to factor in all possible components of the philosophy will be most effective in managing their competiveness. In order to do this, employers need to conduct a job analysis, perform a job evaluation, and review pay structures periodically (HR Council, 2017). A well-rounded compensation package can be very enticing to future employees.
Fogleman, Sarah (2014). Creative Compensation. Western Dairy Business Magazine. Retrieved on October 19, 2017 from: https://nature.berkeley.edu/ucce50/ag-labor/7article/article33.htm
HR Council (2017). Compensation & Benefits. Retrieved on October 19, 2017 from:http://hrcouncil.ca/hr-toolkit/compensation-wages.cfm
#2 Response
If I were considering a job offer one of the most important elements of total compensation to me would be the base pay because I can then spend freely on whatever other benefits or services I wanted. If benefits or services were provided to me by my employer but I didn’t use them then they would have little or no use to me. A good and steady income stream gives comfort to employees so that they can spend their money the way they want. One benefit that I would like added besides the compensation is health benefits since they seem to be the costliest when trying to obtain an individual or family plan on your own. Though I would still like to have a choice weather or not I decide to sign up for medical benefits. If I were offered an opportunity from two different places and compensation was the deciding factor I would go with the higher compensation. When posting jobs employers would have to post and focus on base pay for potential employees that have the same thoughts as me.
Some employers offer perks such as dry cleaning, gym memberships and tickets to sporting events and concerts. This may interest some potential employees but others like myself would say that they would rather have the cash in hand and will purchase tickets at their leisure.
References
Bradt, G. (2012, January 11). How leader’s communication styles impact the delivery of results. Forbes Magazine. Retrieved from forbes.com
Gladwell, M. (2011, November 14,2011). The real genius of steve jobs. The New Yorker. Retrieved from http://www.newyorker.com/magazine
#3 Response
We all know when looking for a job we will not find the perfect one, but that does not mean settle for the first thing that is offered and you are allowed to negotiate, but I would say do not compromise on benefits. So, you guessed it when considering a job offer, for me the most important aspect to consider would be benefits and services. Don’t get me wrong, a good base pay can be enticing and just as important but benefits outweigh salary for me. I learned that salary will typically make up about 70% of compensation (Bellis, 2016). According to the 2013 Aflac Workforce Report, 68% of workers who are satisfied with their overall benefits packages are also satisfied with their jobs, compared to only 5% of workers who are satisfied with their jobs but not satisfied with their benefits packages” (Gidwaney, 2017). Think of it this way if you are offered a good base pay but the benefits are lacking your good base pay in now “lower” because you essentially have to pay for health insurance out of your paychecks, which can be costly. Since benefits can be expensive for a company it is a good indicator if the company offers benefits that they care about their employees. If I look at what my company pays out for benefits, it averages out to about $15,000.00 annually, this includes health insurance, dental, vision and a 401k match. If I had to pay for all that out of pocket, it would basically make my base pay lower. Plus, most companies offer raises at some point during employment.
According to an article I read by Veer Gidwaney, there are few things you should inquire on during the interview process. See if the company offers health insurance or a contribution plan, since the rise of insurance many companies have stopped offering health plans (Gidwaney, 2017). Inquire if they offer any kind of dental or vision insurance, this can be costly for a family if you need glasses or dental work (Gidwaney, 2017). Wellness programs are another benefit that can be beneficial. My employer offers a wellness program where if we participate in it annually we get a $50 reduction in our insurance monthly and if we earn enough points through being healthy we can get bonuses up to three times a year. Lastly, time off not just vacation time but maternity leave, flex-time or working from home. “When considering a job offer, don’t just take the money and run- make sure the employer offers good benefits, as well as a cushy salary, so you can relax and focus on a job you love without worry” (Gidwaney, 2017).
To wrap it up, the benefits to look for when accepting a job would be number one health insurance or a contribution plan, dental or vison, life insurance, vacation time, wellness program and 401k match. Don’t just consider salary, but look at the benefits and never be afraid to ask questions. Companies that offer good benefits are happy and proud to answer any question you may have.
References
Bellis, R. (2016, January 22). 5 Often Overlooked Benefits that you Should Negotiate with a New Job Offer. Retrieved October 18, 2017, from https://www.fastcompany.com/3055541/5-often-overlooked-benefits-that-you-should-negotiate-with-a-new-job-
Gidwaney, V. (2017, January 07). Why Benefits are More Important than Salary. Retrieved October 18, 2017, from http://www.careercast.com/career-news/why-benefits-are-more-important-salary
#4 Response
Base pay is a fixed reward for services offered to the employee for work that has been completed. Base pay could be viewed as a retainer; an amount the employee must receive for working for the organization (Ripberger, 2013). Before an interview, completing an investigation on the average salary and range for the type of position should be completed. It is important to evaluate salary figures for the same type of job within the same geographical region location to ensure it is appropriate. When giving consideration of the base pay, one should consider the opportunity of being rehired into the business or promoted should an opportunity arise (Ripberger, 2017).
Benefits are significant for they are an added perk to the employment package, and makes an individual feel valued, as well as a sense of belonging within the organization (Lewis, 2017).Benefits can be quite valuable. Medical insurance alone can cost several hundred dollars a month, but needs to be weighed against your lifestyle and the potential costs of health conditions (Lewis, 2017). Examples of the benefits would be medical insurance, sick leave, vacation, retirement benefits, emergency funding, flex plans and mental health assistance. Retirement benefits can be extremely enticing for an employee, for many companies contribute a percentage of money to one’s retirement plan. Sick leave and vacation time is a valuable benefit. Know that you are able to take a sick day when you are ill, or a planned vacation with the family makes you feel valued within the corporation (Lewis, 2017).
Services are those items that a company is willing to do, or provide for an employee (Lewis, 2017). They are an indication of a company’s interest in the life of an employee. When you work a demanding job, it can be difficult to find the time for important chores, thus a company would have services available to take in your dry cleaning, finding someone to care for your pet while you’re away on business, book tickets for your upcoming vacation, or providing day care.Services may be important to simplify your lifestyle, but not necessarily the most important factor to some employees, for an individual may prefer to complete these items on their own.
Lewis, K. (2017, February 20). Difference Between Employee Benefits & Employee Services.
Retrieved from http://smallbusiness.chron.com/difference-between-employee-benefits-employee-services-40532.html
Ripberger, D. (2013, July, 25).The Importance of Base Pay. Retrieved from
http://www.rscadvisorygroup.com/rsc/index.php/practice-advisor/50-the-importance-of-base-pay
#5 Response
If I were considering a job offer, base pay is the component of total compensation that I would find the most significant. In nearly all instances, base salary supersedes all other forms of compensation concerning lasting value and implication. Enjoying a high base pay goes a long way to boost the bonus earned. However, this is not applicable in the reverse as negotiations of higher benefits do not have any effect on the employee's base salary (O’Meara, 2015). Moreover, it has been established that the computation of yearly increments on the total compensation is done as a proportion of the base pay. There is, therefore, no doubt that having a high base pay directly translates to the increment of total compensation. If employees bargain for base pay, they have a good opportunity to keep building on it in all other job offers by making it continue increasing.
If an employee has a high base pay, he can negotiate for its increment in the next job offer, and this will play a key role in raising the bonus indirectly. Nevertheless, an employee does not have the chance to negotiate for the increment of the incentive offered and, thus, cannot build on it (O’Meara, 2015). For instance, a worker cannot tell the employee that since the bonus given in the previous company was 15% of the salary, he hopes to obtain not less than 25% in the new job. Unlike for the base pay, if all the workers in the new company are given a bonus of 12%, there will be no possibility of getting anything more. Negotiating and getting a high base pay motivates workers to perform excellently. I remember how, in a company that I previously worked, I was overjoyed when the employer granted the base pay that I had proposed. I did not just take the pay as mere money but as the value that my employer placed on me as an employee. The degree of appreciation that I felt had a direct influence on my overall performance.
The matter of base pay being the most significant element of total compensation signifies that employers seeking to attract workers like me must ensure that the basic salary they offer is not only competitive but aggressive. Since the objective of every employer is to draw, motivate, and ensure retention of workers, a company will offer a high base pay if it is convinced that that is what will satisfy the employees, especially the excellently performing ones (Cheng, 2014). To realize their objectives, employers must endeavor to employ a blend of the major elements of total compensation. In particular, some of the employers’ approach is to provide a base pay that is competitive with the aim of attracting and retaining workers.
Since most employers cannot afford to offer a very high base pay for many employees as a means of drawing and motivating them, companies are faced with the challenge of creating a pay process that upholds the value of workers while ensuring their retention (Noe, Hollenbeck, Gerhart, & Wright, 2015). For instance, for a small organization that has moderate resources to establish an affordable pay program, it has to provide a competitive base pay rather than an aggressive one by offering payment akin to what a worker can get at some other company within the market.
In case I was thinking of a job offer, base pay is the constituent of total compensation that I would find the most noteworthy. It surpasses all other elements of compensation with respect to enduring worth and insinuation. Unlike incentives or benefits, base pay offers an employee the chance to keep building on it in other job offers through ensuring its increment.
References
Cheng, S. (2014). Executive compensation in public higher education: Does performance matter?Research in Higher Education, 55(6), 581-600.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2015). Human resource management: Gaining a competitive advantage. New York City, NY: McGraw-Hill Education.
O’Meara, K. (2015). Half-way out: How requiring outside offers to raise salaries influences faculty retention and organizational commitment. Research in Higher Education,56(3), 279-298.
#6 Response
In my personal opinion, benefits and incentives of a position can make a bigger impact on my decision than base pay. Although base pay is very important in determining if an offer for a position should be accepted, the benefits being offered may be of more importance to me. One survey by the Harvard Business Review showed that 80 percent of employees that were asked would prefer other benefits over a pay raise (Jones, 2017). Being an individual with a family, health insurance and other programs are very important. If a company offers good quality insurance at a decent rate, I would be more likely to choose that position over a job that does not offer insurance. I also feel that employee incentive programs, bonus programs, and other discounts can make a big impact on my decision to take a position. For example, being an employee for our local health system, I get a 15% discount on any bills that my family accumulates within our health system. To me, incentives like that discount are real-life benefits in a position.
It has been noted that organizations are starting to change their benefits in an effort for employee retention to improve, and this may help with recruiting as well (Miller, 2016). Being a member of the working class with a family, I think my answer would relate to many different individuals seeking employment. With the rising costs of medical care and health insurance, it is of great benefit to know that a company has a reasonably priced insurance package and/or other forms of assistance for their employees to be able to receive appropriate care. Companies are already going in the direction of changing benefit packages with new data showing that potential employees are placing more value in benefits instead of just in base pay and/or raises (Jones, 2017). With that being said, the implications would involve organizations to reassess their hiring packages and ensure that benefits and incentives are tailored for the needs of the applicants. Employers will need to ensure their hiring offers to applicants are reflective of the new trend toward benefits and incentives over just base pay.
Jones, K. (2017, February 15). The most desirable employee benefits. Retrieved October 17, 2017, from https://hbr.org/2017/02/ the-most-desirable-employee-benefits
Miller, S. (2016, November 30). Employers alter benefits to attract, retain employees, SHRM finds. Retrieved October 17, 2017, from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/ alter-benefits-attract-retain.aspx
#7 Response
As the book states thinking about benefits as part of total compensation, creates a question, why do employees choose to focus a significant portion of the compensation dollar away from the wages and salaries, into benefits? According to the economic theory, some people prefer dollar in cash rather than dollars’ worth. (Noe, 2017). And this is because cash can be used to buy the commodity, in most cases.
As for me, I believe benefits are very important when I apply for a position in a company, that is one strong motive for me. John Scorza states that “according to the study, employees who are satisfied with their benefits are the most loyal, with 71 percent of those employees reporting that they are very loyal to their employers.” (Scorza, 2017). This means that benefits create loyalty from the workers to the company because they feel there are appreciated by the company, I would feel the same way if a company gives me good benefits, I would work even hard for them day and night if it is possible.
So, the reason why companies seek and attract people to work for them is that they want the best employees in so the company can grow and become stronger. This is why they build great benefit plans that are very attractive. According to the website www.shrm.org Human resources professionals are strategically leveraging employee benefits as a recruitment and retention tool. (Miller, 2016). Here there is another example on how companies behave in order to get the best people out there if it was for me, I would definitely apply for their company if the package is good, also this is another way to retain people that are very useful to the company.
Work Cited
Miller, S. (2017, May 19). Employers Alter Benefits to Attract, Retain Employees, SHRM Finds. Retrieved October 15, 2017, from https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/alter-benefits-attract-retain.aspx
Noe (2017). Reasons for Benefits Growth. Human Resource Management 10th Edition, p.537. McGraw-Hill Publishing Company.
Scorza, J. (2017, May 19). Benefits Can Boost Employee Loyalty. Retrieved October 15, 2017, fromhttps://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/benefits_loyalty.aspx
