Reflection

Running head: STRATEGIC SUCCESSES AND FAILURES OF COMPENSATION 1

STRATEGIC SUCCESSES AND FAILURES OF COMPENSATION 2

Final

Stephanie A. Gillmer

Purdue Global University

HR 435-01 Compensation

Dr. Ileana Felipe

September 29, 2020

Strategic Successes and Failures of Compensation at BNSF

Introduction

Compensation is essential in any workplace because a good organization can easily use it as a strategy for development. It is vital to come up with the best measures that will help make it easier to increase the interactions in the workplace. Consistency and compensation in the organization should be on par with the responsibilities and requirements that the organization has for its employees. It is essential to train the employees on the best practices that help make sure that they interact and come to the basis that they can increase their productivity. The various compensation at the BNSF includes overtime wages, benefits such as retirement, insurances, injury compensations, 401ks all that are in place to ensure that they lead to production at the workplace. BNSF needs to incorporate the compensations strategically to make sure that they take advantage of their productive employees and also make sure that they reward them well for their efforts. Compensation is a tool that can help make sure that the workplace is functional. The proper incorporation of it into the company will make it easier to increase their productivity. Low incorporation of compensation in the workplace, especially with the existence of the unions, limits the expected outcomes for the company from the program; thus, they have to change and plan well for the future strategies for the employees and the company.

The strategic value of the plan as a source of competitive advantage

Incorporating compensation is a significant boost for the company to provide the required edge for the company for a competitive advantage. The competitive advantage will occur when the company is incorporating compensation in better measures within the company to help show the employees that BNSF appreciates them. It will be practical and relative for the employees to work hard and develop a better working relationship because they will be achieving their goals. For instance, BNSF can quickly introduce better benefits packages to their employees, which implies that they will make it easier for them to increase productivity. Numerous competitors do offer the best benefits packages in the industry, which helps boost the morale and motivation of their employees. The employees will give it their all and thus will have a better workforce compared to the other organizations. Incorporating better compensation strategies within a workplace will be a significant boost and beneficial for the company, mainly because they do function and exist to improve their performance (Tenhiälä & Vuori, 2012). The employees at BNSF will have a more comfortable life outside the workplace, and this is a significant boost because it helps prove and remind them of the reasons as to why they are working hard. The company should provide a better life and future for their employees by treating them as more than just tools to achieve their goals. The company will then start experiencing productivity at a higher level, which is vital for the organization because it will begin developing a competitive advantage over its competitors. The company should strive to create the best strategies and terms for the company, which is essential for its positioning on the market. The performance and reviews from the employees help push the company to the position that it is currently in North America and thus can quickly move to conquer entire America and maybe more to neighboring countries. The way an organization treats its employees in terms of compensation will reciprocate their responsibilities at the workplace.

Evaluate the internal alignment structures of the plan

BNSF has proper internal alignment structures that make it easier to increase their interactions and make sure that they do incorporate their practices. They need to maintain the appropriate job specializations and qualifications as the determinants of the benefits because they imply the expected outcomes and job responsibilities. For instance, a senior supervisor in the workplace needs to have a higher benefit and compensation packages, mainly because they do have the more elevated experience, job expectations; thus, they will have to work harder. The organization needs to maintain its interactions because it helps increase the turnovers and understanding within the workplace. The company struggles with the measure because some of the lower-ranking employees appear to do the heavy lifting at the workplace, which is not appropriate. The concept is changing the way that they do interact on the basis that they come up with better strategies that will influence their outcomes, which is essential in their productivity. BNSF must come up with better job planning and education of its employees on better planning and understanding that will help bring some flow and organization in the company. The variations tend to lead to problems with the union and the causing cohesion with employees, which changes the way that they do interact and make sure that they do incorporate their problems. The organization needs to find ways to develop open communications with its staff, whereby it is clear that a particular employee or specific standards will get you specific compensation packages (Leonard, 2019). The move will be essential for the company because it will help remove doubt and ensure that they understand the other, vital in their productivity. Tenhiälä & Vuori explained that the transference of the company’s activities to other areas and regions would call for further investigation and research into the internal alignment structures in the different areas to ensure that they provide relatable services (2012). It will not be appropriate for the company to provide or compensate their employees poorly compared to the new market and consumers; therefore, they need to come up with such strategies that will help shape the future of the organization. BNSF must come up with flexible compensation strategies across the company and the regions that it seeks to venture into because it helps ease their pressures and provide a wiggle room for the company and its employees.

Appraise the external strategies used to execute the plan

It is evident that the freight movement in the United States is competitive and most of the companies are leaders in the sector that puts BNSF at a disadvantage. The company cannot control the prices and the way that they do handle policies in the industry; thus, they need to find systems that work for them. The company needs to find sound practices that help elevate and remain interactive, essential for their interactions. Numerous companies are leading and ahead of the market; therefore, the company can’t implement the three-pay policy; instead, it will be practical and efficient for the company to implement the lead pay-level policy. The company needs to make the system and strategy because it is easier for them to understand and incorporate the changes that will help change the way that they do interact. The lead pay-level policy will be a more straightforward measure to incorporate and change the way that the company interacts and changes the way that they do interact (LaBelle & Waldeck, 2020). The company needs to take head and invest in its managers and other leaders. They do impose the compensation starting with the managers and then trickle it down to the leadership. The organization depends and will benefit more if they do give the managers the authority and do focus on their independent success and platform instead of focusing on the other competitors on the market. BNSF will significantly boost and advantage because they can quickly improve and have an easier transition across the other employees across the different lower levels. It is easier to have a working environment and relationship across the workplace that makes it easier to improve their relations and will, in turn, increase the organization’s productivity.

Evaluate the incentives in the plan

BNSF is offering various packages that include dental, vision plan, health insurance that emanates from the health insurance with additional life insurance, short-term disability, railroad retirement, tuition assistance, and a matchup of 3% of the 401K. The company is working to ensure the safety of employees at work and their lives outside with families cater to making sure their employees are safe and comfortable. The company understands that the employees have experiences outside the company, which influences their decisions; thus, BNSF has to make sure that they are comfortable for the long-term because it will increase their productivity and dedication to the working environment. However, the organization has to make sure that they do come up with proper connections between the benefits that they are offering and the objectives of the organization. The concept is more comfortable to incorporate because the company has to understand that whatever they implant into their employees will have a particular outcome; therefore, it is essential in making sure that input and create the right connections (Team, 2020). In addition, it will be necessary for the company to also provide the employees with a varied number of benefits packages to help increase the coverage and options for the employees. For instance, BNSF is providing dental, vision, general health insurance and thus can come up with other packages such as family or spousal coverage, which is essential in making sure that their employees enjoy and feel appreciated at their workplace. Educating the employees will be necessary for their productivity, and making sure that they understand the reasons for the imposition and how they need to respond is essential. BNSF can come up with a reward program to help provide employees that are best performing and achieving the goals of the organization in alignment with the compensation program. The introduction with rewards is a form of reinforcement to ensure that the employees are functional and remain to task with the organization, essential in their production.

Assess the role of benefits in the plan

The benefits play a significant role in the plan because they help ensure a specific flow and production in a particular manner. The organization needs to take advantage of the benefits because they do help increase the efficiency of the employees in the workplace. It is vital for the plan to have the benefits because it helps bring the employees together, and the company also work and function as a joint entity. Most companies are operating on the basis that there are a significant understanding and incorporation that will help elevate their interactions, which is a substantial boost to the way that they do interact and behave. Incorporating benefits into an organization is a significant boost to how they interact and view themselves, which is a big way that helps increase their productivity. The company needs to develop proper benefits and standards to ensure that its employees’ sort, which is essential for their productivity. The introduction of benefits helps show the employees that the company cares and does have their interests at heart. The move itself is a significant boost in the positioning of the business because it helps in making sure that the employees do understand that they have to work harder to achieve the organization’s goals and objectives. The company will also benefit from the compensation because it can help boost productivity in the workplace, making sure that they are incorporating the best principles for the employees and the company (Pittman, 2010). The plan will benefit well from compensation because there is a sacrifice on both sides of the program essential in productivity and operations within the workplace.

Appraise the processes and structures used to manage labor costs

Managing labor costs in the workplace is essential in ensuring that the workplace is earning the desired production levels for the organization. It is vital to review and manage the levels of compensation, which includes making realistic adjustments dependent on the production and expected returns. Besides, it will be crucial to get the employees on board through proper communication to make sure that there is some understanding of the production. It is essential for the company also to make sure that they are a reduction in employee turnover because it will help make sure that there is a reduction in the expenditure for the team that is dealing with employee selection and training (Gunderson, 2019). Also, there is a longer duration between the employee attachment and understanding their roles; therefore, it will result in wastage of human hours, low quality, and extended production time. It is crucial to ensure that the company retains its employees for a longer duration because it helps them save up capital in labor. The organization can easily cut back from the fixed wages and salaries and instead convert into commissions and even opting for the hourly wages. Some employees might opt for the commission, and thus they will increase their productivity, which is essential for them to earn better than fixed salaries and also lower labor costs because lower-performing employees might have lower incomes. Paying people the hours that they work is essential for production. BNSF must come up with similar strategies because those that do not perform their full hours will receive salaries for their hours, which is a primary backup for the labor costs in the company.

Evaluate the means of communicating the plan to the employees

It is vital to come up with the principles of enhancing and promoting communication at the workplace. Communication should be an open through-n-through at the workplace where there is a consistent flow of information between the administration and employees despite their levels. The information that the employee at the lowest level shares should have proper channels to ensure it gets to the top management. It will be essential to incorporate top-down and bottom-up communication strategies in the workplace. According to LaBelle & Waldeck (2020), the top-down will help ensure that the administration can provide information, and it trickles down the existing levels of the workplace.

On the other hand, bottom-up communication is making sure that the lowest level employee can share their concerns, and it gets to the top levels with ease and without losing the meaning of time for reaction. The plan will also incorporate all modes of communication within the workplace to make sure that they do achieve their goals, such as staff meetings, electronic communication, memos, one-on-one meetings, and informal face-to-face meetings. The various modes help promote communication at all times and within all sects, which is essential in their production and efficiency. It is necessary to create a free environment with respect, value, and trust across the workplace. It will be crucial to make sure there is a response for concluding both what and why there is information on the intended actions and why they incorporate to help reduce the vacuum at the workplace. The communication plan will involve coming clean on how to communicate and seeking prepositions for future communication plans; therefore, it is essential to make sure that there is the development of transparency and accountability.

Conclusion

Compensation is a significant part of the workplace, and it is vital to come up with strategies that function and give the business a significant advantage compared to the other competition. Proper incorporation of the compensation and benefits in the workplace help determine the profitability of the company. BNSF incorporating suitable compensation packages into the workplace will help increase their efficiency because it can help use it to motivate and improve productivity in the workplace. On the other hand, the compensation will help boost the lives and safety of the employees both at the workplace and give them a sense of belonging that instills a sense of belonging and productivity. BNSF should use strategy to advance because the company can then implement benefits that will reduce employee turnover, cut their labor costs, increase work etiquette, enhance performance at the workplace, which then boosts their position and strategies at the workplace. The competition is rapid in the industry. Incorporating proper compensation strategies will be a significant advantage for the organization since it can use them to gain an edge on the market.

References

Pittman, R. (2010). The Economics of Railroad “Captive Shipper” Legislation. Administrative Law Review, 62(3), 919-936. 

Gunderson, M. (2019). Workersʹ Compensation in the New World of Work. In Gunderson M. & Hyatt D. (Eds.), Workers’ Compensation: Foundations for Reform (pp. 27-57). University of Toronto Press.

LaBelle, S., & Waldeck, J. (2020). Communication Ethics. In Strategic Communication for Organizations (pp. 91-116). Oakland, California: University of California Press. DOI:10.2307/j.ctvw1d664.8

Tenhiälä, A., & Vuori, T. (2012). Decoupling Compensation Practices from Human Resource Management. International Studies of Management & Organization, 42(1), 7-23.

Leonard, K. (2019, March 01). Importance of Compensation in the Workplace. Retrieved August 04, 2020, from https://smallbusiness.chron.com/importance-compensation- workplace-38470.html

Team, M. (2020, April 12). BNSF Railway SWOT Analysis: Top BNSF Railway Competitors, STP & USP: Detailed SWOT Analysis of Brands. Retrieved August 18, 2020, from https://www.mbaskool.com/brandguide/transport-and- logistics/13083-bnsf-railway.html