Human Resources

Sample Benefits Plan Assignment 1

This student sample Benefits plan assignment addresses key benefit strategies and issues and provides many industry sources to support the analysis. There was a little too much reliance on the course textbook as a primary source, but overall the plan presented was credible. The decision to include the pay analysis in addition to the benefit plan was an extra bonus to provide perspective on the total compensation plan. The plan had a logical flow, was well written and had few grammatical or sentence structure issues.

Benefits Plan

for

Public Relations/Digital Media Marketer

Compensation is the set of rewards and wages that organizations provide to

individuals in return for their willingness to perform various jobs and tasks within the

organization (DeNisi & Griffin, 2016). Compensation should never be a result of

arbitrary decisions, but the result of a careful and systematic strategic process (Lister,

2014). A benefit program should be developed in concert with a pay plan to ensure the

total compensation achieves organizational goals. When developing a pay and benefit

program, a human resource manager should use pay surveys as a starting point. Pay

surveys are surveys of compensation paid to employees to ensure pay equity and salaries

are based on supportable data (SHRM, 2016). The fundamental purpose of compensation,

then, is to provide an adequate and appropriate reward system for employees so that they

feel valued and worthwhile as organizational members and representatives (DeNisi &

Griffin, 2016). Compensation represents more than the number of dollars a person takes

homes in his or her pay envelopes. It also provides a measure of the employee's value to

the organization and influences job satisfaction and turnover rates.

Pay Policy

There are several options for determining a pay policy. The first option relates to

the basis for pay, some key factors that correlate with this option are; functions

performed on the job, skill-based pay, and pay-for-knowledge programs. For my

Sample Benefits Plan Assignment 2

industry, I would use pay-for-knowledge programs and skills based pay as the basis for

compensation as a public relations/digital media marketer. This approach aligns with

industry norms. The second decision in developing a compensation strategy focuses on

the bases for differential pay within a particular job (DeNisi & Griffin, 2016).

Differential pay means the difference between seniority pay and pay based on

performing. I would base the compensation rate as a mixture of pay based on

performance and pay based on seniority. The amount of time an employee has been

employed with Daytona International Speedway would be a factor but also the

knowledge and skills an employee brings would also be considered for the type of

compensation that employee receives. A third decision in developing a compensation

strategy deals with the organization's pay rates relative to going rates in the region and

legislative requirements (HR Council, 2017). A company's pay rate can have either above

market compensation, below market compensation, or to pay market rates for employees

that are comparable to those available in other organizations, no more, no less. I would

choose the similar compensation rate due to the need for budget and cost controls, while

also attracting higher quality employees than an employer who implements a below

market strategy. An organization that adopts a market-rate strategy is likely to believe it

can provide other intangible or more subjective benefits to employees in return for their

accepting a wage rate that is perhaps lower than they might be paid elsewhere (DeNisi &

Griffin, 2016).

Wages refer to a fixed regular payment, typically paid to manual or unskilled

employees often on an hourly, daily or piecework basis (Merriam-Webster Dictionary,

2017). Salary is income paid to an individual on the basis of performance, not on the

basis of time (DeNisi & Griffin, 2016). My dream job consists of two different

employment fields, a public relations specialist and a digital/social marketer. According

to the Bureau of Labor Statistics, a median salary for a public relations specialist is

$56,770 (BLS, 2016). According to payscale.com; a digital marketer's median salary is

$62,352 (Payscale, 2016). When I combine the wages of both occupations and divide by

two, the total comes to 59,000 a year. I would use this number as the median salary for a

public relations/digital marketer at Daytona International Speedway. I believe this salary

is the market-based rate for this occupation and is the standard I would use as the Human

Resource manager at Daytona International Speedway. When determining what to pay, I

would use the pay for knowledge and a point system as a primary tool for determining

compensation. Pay for knowledge involves compensating employees (usually managerial,

service, or professional employees) for the increased knowledge or skills they acquire

(HRMP, 2017). This system can also be designed to pay for learning supervisory skills or

for developing more in-depth knowledge about a topic relevant to the organization

(DeNisi & Griffin, 2016, p.205). This type of system is usually expensive to start with

due to the fact of that the organization needs to find ways to determine if the employee

Sample Benefits Plan Assignment 3

has mastered the information. A point system is the most common method of job

evaluation in determining what to pay. The point system for job evaluation requires

managers to quantify, in objective terms, the value of the various elements of specific

jobs (DeNisi & Griffin, 2016). Coming up with a point system, I would use the example

proposed by DeNisi and Griffin about an administrative role in an organization. The

ratings for an administrative job are: weighting of a college degree (40 percent);

experience required (30 percent); predictability and complexity of the job (15 percent);

responsibility and authority for making decisions (10 percent); and working conditions

and physical requirements for the job (5 percent). A point manual is a must for

implementing a point system when it comes to job evaluation. The point manual is used

to apply the point system of job evaluation, carefully and correctly defines the degrees of

points from first to fifth (p.204). Using education as an example of a point manual, I

would rank having a high school diploma as 10 points, an Associate of Arts degree as 25

points, a bachelor's degree as 50 points, a master's degree as 100 points, and any degree

higher or multiple degrees in the marketing field as 125 points.

Benefits

Since employees for this position are paid at the average market-based rate, I will

use benefits as an incentive to attract the most qualified applicant for this job. Even if the

employees do not work harder in response to better benefits, they are more likely to

remain with a firm that provides better benefits and is most satisfied with that firm

(DeNisi & Griffin, 2016). Employee expectations are a driving force in determining what

benefits a firm must offer. An example of this is when even though an organization is not

legally required to offer any vacation time, paid vacation time is very desirable and has

become so common that almost every person, who considers a new job expects to receive

this benefit (DeNisi & Griffin, 2016).

Mandated benefits are benefits that are required by law. Some of these mandated

benefits are unemployment insurance, worker's compensation, and mandated health care.

Unemployment insurance is a mandated protection plan, is intended to provide a basic

subsistence payment to employees who are between jobs and employers pay into the

unemployment insurance fund (DeNisi & Griffin, 2016). A second mandated benefit is

Social Security, the initial purpose of this program was to provide some limited income

to retired individuals to supplement their own personal savings, private pensions, part-

time work, and so forth (DeNisi & Griffin, 2016). This benefit is funded through

Sample Benefits Plan Assignment 4

employee and employer taxes that are withheld on a payroll basis (Social Security

Administration, 2016). The maximum taxable earnings amount for Social Security is

$113,700; the tax rate is 6.2 percent each for employees and employers (Social Security

Administration, 2016). Worker's compensation is another mandated protection

program, is insurance that covers individuals who suffer a job-related illness or accident

(DeNisi & Griffin, 2016, p.208). The Patient Protection and Affordable Health Care Act

was signed into law on March 23, 2010 (DeNisi & Griffin, 2016, p.208). By law, the

company is required to offer all mandated benefits to all employees.

Non-mandated benefits are not obliged by law, and a company does not have to

execute these benefits to their employees. One of the main non-mandated benefits I will

be using is paid time off, but not just any paid time off benefit. A major component of

paid time off is having certain holidays off with pay. Most full-time employees receive

about ten paid holidays per year (Roper, 2017). I would use holiday and vacation time as

paid time off, but I would use sick days as a separate category that still involves paid time

off. Another benefit I would offer to employees is using community service hours as

additional paid time off. Every hour an employee spends doing documented community

service hours will result in the same amount of hours they could use for paid time off.

According to Frauenheim and Lewis-Kulin (2016), giving employees paid time off for

volunteering helps companies succeed by increasing retention and willingness to go the

extra mile for the company. I would also implement a child day care service either on the

premises or additional pay for child care services. A company being considered a family-

friendly organization is increasingly viewed as a competitive advantage in attracting

talented workers (DeNisi & Griffin, 2016). Netflix offers one paid year of maternity and

paternity leave to new parents; they also allow parents to return part-time of full-time and

take time off as needed throughout the year (Glassdoor Team, 2016). Salesforce

employees receive six days of paid volunteer time off a year, and if they use all six, they

receive a $1,000 grant to donate to a charity of their choice (Glassdoor Team, 2016).

These are just some businesses that go above and beyond when applying for employee

benefit programs.

In addition to the pension benefits guaranteed under the Social Security Act,

many companies also elect to establish private pension plans (DeNisi & Griffin, 2016).

The defined benefit plans are private pension plans in which the size of the benefit is

precisely known and is usually based on a simple formula using input such as years of

service (DeNisi & Griffin, 2016). A defined contribution plan is private pension plans

in which the size of the benefit depends on how much money is contributed to the plan

(DeNisi & Griffin, 2016). Devon Energy has an enhanced defined contribution pension

plan, where the company will contribute 8, 12, or 16 percent of the employee's salary, so

an employee can get as much as 22 percent of their salary contributed by the company to

his or her retirement account (Perman, 2010). As the Human Resource manager for

Sample Benefits Plan Assignment 5

Daytona International Speedway, I would use the defined contribution private pension

plan for my current and future employees. I believe this is a huge benefit for employees

wanting to contribute to their future and also seeing how the organization they work for is

willing to take care of them as well. This serves as a big "Thank You" for an employee's

time and service to the organization. Our approach is to use valuable benefits to attract

the best employees.

According to The Creative Group (2016), a benefit can also be defined as a form

of non-wage compensation, if not offered by the employer; employees would have to

fund them themselves. The top 5 benefits an employer can offer are: healthcare, paid time

off, retirement savings plan, maternity/paternity leave, and professional development. A

perk, as in perquisites or corporate perks are nice to have additions to an employee's

salary and benefits package. Perks can also be defined as above and beyond offerings

that may sway an employee to value one employer over another. The top 5 persuasive

perks a company can offer are: workplace wellness programs, free food and coffee, work

from anywhere, concierge services, and transportation or parking reimbursement (The

Creative Group, 2016).

Some industry norms for a digital/ social media marketer are: a social media

manager with 5+ years' experience is expected to earn a weighted median salary of

$46,511.02 (Crestodina, 2016). A marketing manager with 5-10+ years' experience is

supposed to receive a weighted median salary of $71,351.88 (Crestodina, 2016). A

marketing associate with 1-3+ years' experience is supposed to receive a weighted

median salary of $42,102.37 (Crestodina, 2016). Robert Half reports an 8.1 percent

increase in salaries for marketing employees in 2016 (Crestodina, 2016). Public relation

industry norms are also based on experience as well. A public relations employee with

less than five years' experience is reported to earn around $45,000 on average (Payscale,

2016). People who have worked for 5-10 years can expect a higher median salary of

$57,000 (Payscale, 2016). A national salary database shows a public relations employee

can make between $30,767 - $104,086 plus $1,017 in bonuses to total $32,520 -

$106,436 in total pay (Payscale, 2016). Edelman, one of the largest Public Relation firms

in the country rewards 30 employees each year with $1,500 and an additional week of

vacation each to be used to either "Live a Dream" by pursuing a personal goal or interest

or "Give a Dream" by giving back to the community (Homes Report, 2016). Coyne PR is

a midrange public relations company whose benefits include, zero co-pays for doctor

visits, a generous holiday schedule along with Paid Time Off, unlimited sick time and

birthdays off, in addition to two volunteer days per year (Homes Report, 2016).

Summary

Organizing a compensation plan is no easy task; it takes thoughtfulness and

strategic planning to initiate a competitive compensation policy. There is plenty of

Sample Benefits Plan Assignment 6

information to use when completing a compensation plan, such as policy options for

compensation, determining what to pay involving job evaluation methods, the use of non-

mandated and mandated benefits. I have decided to use a market-based pay rate of

$59,000 a year with a competitive benefit strategy. The mandated benefits I will use in

my compensation and benefits package are: unemployment insurance associated with

Social Security benefits, worker's compensation, and mandated health care. The non-

mandated advantages and perks I will use are: a defined contribution private pension plan

paid time off that involves, holiday and vacation paid time off as well as community

service hours used for additional paid time off. I will also offer child care benefits that

can result in child care facilities on the premises or additional pay for child care. I want

to also offer dental, vision, and life insurance coverage as a benefit that could be used by

employees. I also want to incorporate cafeteria-style benefits plan which allows

employees to choose benefits they want. Using a cafeteria-style benefits plan, the

organization typically establishes a budget indicating how much it is willing to spend per

employee, on benefits (DeNisi & Griffin, 2016, p.212). An employee is then presented

with a list of benefits he or she is willing to accept per the budget regulations. This

approach allows employees with different benefit needs to be chose the benefits that are

most useful to them. For example, a worker with a young family may value a daycare

service more than a wellness plan. Using a market-based pay rate plus additional benefit

programs that an employee can choose from will allow me to attract the best-qualified

applicants for this position.

Sample Benefits Plan Assignment 7

References

Bureau of Labor Statistics. (2016, March 30). 27-3031 Public relations specialists. Retrieved

from http://www.bls.gov/oes/current/oes273031.htm

Crestodina, A. (2016, July 21). Marketing job descriptions - Marketing job salaries guide.

Retrieved from https://www.orbitmedia.com/blog/marketing-job-descriptions-salaries/

DeNisi, A. S., & Griffin, R. W. (2016). HR 3e (Student 3 ed.). Boston: Cengage Learning.

Frauenheim, E., & Lewis-Kulin, S. (2016, April 26). Giving workers paid time off to volunteer

will help your company succeed. Forbes Magazine. Retrieved from

http://fortune.com/2016/04/26/giving-workers-paid-time-off-to-volunteer-will-help-your-

company-succeed/

Glassdoor Team. (2016, February 3). Top 20 Employee Benefits & Perks. Retrieved from

https://www.glassdoor.com/blog/top-20-employee-benefits-perks/

Holmes Report. (2016). 2016 North America best agency to work for. Retrieved from

https://www.holmesreport.com/events-awards/agencies-of-the-year/2016-best-agencies-

to-work-for/north-america

HR Council. (2017). Compensation & benefits. Retrieved from http://hrcouncil.ca/hr-

toolkit/compensation-wages.cfm

Human Resource Management Practice. (2017). Pay for knowledge/Pay for compensation.

Retrieved from http://hrmpractice.com/pay-for-knowledge-pay-for-skills-compensation/

Lister, J. (2014). Strategic plan for employee compensation and benefits. Retrieved from

http://smallbusiness.chron.com/strategic-plan-employee-compensation-benefits-

15613.html

Merriam-Webster. (2017). Wage. Retrieved from https://www.merriam-

webster.com/dictionary/wage

Payscale. (2016). Digital marketing manager salary. Retrieved from

http://www.payscale.com/research/US/Job=Digital_Marketing_Manager/Salary

Sample Benefits Plan Assignment 8

Perman, C. (2010, September 21). 10 companies with the best retirement plans. CNBC.com.

Retrieved from http://www.cnbc.com/2010/09/21/10-Companies-with-the-Best-

Retirement-Plans.html?slide=1

Roper, C. (2017). Paid vacation time: How do you stack up? Retrieved from

https://gusto.com/framework/health-benefits/paid-vacation-time-how-do-you-stack-up/

SHRM. (2016, June 13). How to establish salary ranges. Retrieved from

https://www.shrm.org/resourcesandtools/tools-and-samples/how-to-

guides/pages/howtoestablishsalaryranges.aspx

Social Security Administration. (2016). How is Social Security financed? Retrieved from

https://www.ssa.gov/news/press/factsheets/HowAreSocialSecurity.htm

The Creative Group. (2016, April 13). 10 top perks and benefits that win employees over.

Retrieved from https://www.roberthalf.com/creativegroup/blog/10-top-perks-and-

benefits-that-win-employees-over