Total Compensation Plan

Total Compensation Plan

Denise Johnson, Sytoria Maldonado, Evelyn Spencer

HRM/324

September 18, 2017

Terry Burr

Total Compensation Plan

Having a well-designed compensation plan will help an organization attract and retain the best talent. Compensation plans should include a competitive base salary, health care benefits and maybe even commission and perks. Compensation depends on the financial health of the organization and will determine the compensation packages they can offer employees. Compensation plans should be in line with current trends in the marketplace. Internal and external equities will both be explored in our compensation plan for Starbucks completion, Peet’s coffee.

Peet’s Coffee Key Objectives

Starbucks coffee has brand recognition and is also known for offering attractive compensation benefits that includes a competitive wage, health care benefits and education assistance. Peet’s coffee is an up and coming competitor that mirrors Starbucks in many ways. The main goal at Peet’s is to attract talented employees to consider their organization over Starbucks. So designing a competitive total compensation program is at the top of Peet’s list.

Current Trends in Total Compensation

Internal and External Equities

Internal equities for Peet’s coffee consists of equal pay across the board for performing the same job description. Seniority does play a role in merit pay but will be in line with current market compensation structures. Peets offers a competitve compensation package that is designed to be viewed as fair by employees so they are motivated to perform and earn profits for the company ("Best Practices: Balancing Internal And External Pay Equity", 2012). External equities that Peet’s offers employees are health care benefits and bonus incentives that are viewed by employees as being fair and equitable over similar business competitors.

Wage Management Process and Rationale

Retirement Plan and how participation will be driven

Peet’s offers a company sponsored pension plan for employees and also offers a company matched 401k plan. Participation in the 401k plan will be presented when the employee is hired and on boarded. Regular reminders will be available through emails and company newsletters showing the benefits of enrolling and also giving information on how to enroll in the program. Peet’s also has a website with links for employees to view that answers questions that may arise. Once an employee has enrolled in the 401k plan, annual notices will be mailed to the employee’s place of residence with current plan information.

Influence of the organization financial condition on compensation

How the Financial Plan will be communicated to Employees

Conclusion

References

Best Practices: Balancing Internal and External Pay Equity. (2012). Retrieved from http://ibrief.wagewatch.com/2012/12/20/best-practices-balancing-internal-and-external-pay-equity/