Compensating a Flexible Workforce and Expatriates
Please respond to the following: The discussion questions given please produce 200 words about each numbered question. please place answers under each bullet point. In Addition a response must be given back (100 words) to the other students Sherena Martin and Charmaine Knight.
1. From the case in Chapter 12, determine whether providing employees with a telecommuting option could help resolve the current high employee turnover issue. Provide specific examples to support your response.
2. Using the Internet and your textbook, analyze key issues and considerations that can impact expatriate compensation. Next, identify and describe one (1) of the most challenging aspects in setting compensation. Provide specific examples to support your response.
RE: Week 7 Discussion
I believe the discretionary employee benefit should be earned based on performance. A company can offer a range of excellent benefits for employees like health, dental, life, retirement and more. A company that hires a new person can explain that there is a 6 month -1 year probation period and if they pass, the benefits will be offered to them. With the company offering a great benefits package, the employee will work hard, going above and beyond to pass probation so they can get the benefits. A company can also increase benefits with each probation offer. If an employee knows that moving up in the company means increase in benefits as well as increase pay, that company will have hard working employees all the time.
One legally required benefit is Disability Insurance. Having disability insurance is important because it helps to protect employees as well as employers if they get hurt or sick while employed with a company. Most people that get sick or hurt will need help with paying their rent/mortgage and their bills. Without disability insurance, a person can lose their homes and investments.
Another legal required benefit is Medical Insurance. Medical insurance is important because people that are uninsured receive less medical care. With less medical care, people are unaware of any ailments that may be going on in their body. If a person does know that they need medical care, they won’t go to the doctor because they can’t afford to pay. Which leads to them getting sicker until it’s too late. A company that offers medical benefits shows their employees that they care enough about their health and their families health to invest in them.
RE: Week 7 Discussion
Executive compensation is one of the most important elements that help in profit assurance for an organization. Just like the other employees in the business, it is also important to motivate the executives and the best way to do so is by increasing executive compensation. For an organization to attract the best of the talents, the following are the three most important components to consider, the base salary, incentives, and benefits (Liebenthal, 2019). The wages paid to the executives should constitute the largest share of the annual compensation package for the organization under consideration. The largest share of the compensation should go to the executive because they play a modest role in ensuring that the organization achieves its goals and also maximizes its profits. Maximizing the salary of the executive is important because it gives the feeling of superiority which is a key element for those with brilliant talents and is interested to be in the executive positions. Incentives are also important in attracting talents for the organization in the executive positions. The incentives can be categorized as short-term incentives or bonuses and long term incentives. The short term incentives can be informed of cash given after some times especially when the organization achieves its goals while the long term incentives can be given as bigger asserts like vehicles. Most of the long term incentives are usually tied to the value of the enterprise or the equity. The other important aspect that can be used to attract talents are benefits to the executive. Benefits include non-cash compensation and they may include life and health insurance, paid vacation and defined benefits or the contribution plan. The current practices surrounding the executive plan should not be changed, the practices such as compensating the executives through different ways are very important because it helps the organizations to maintain or even increase their level of productivity. Putting the executive at the comfort zone with lots of privileges is very important in achieving good results in an organization and also in ensuring transparency. For example, if the executive for a bank is well compensated, then the risk of embezzlement is reduced and the performance of the bank may increase.
Compensating the Flexible Workforce
The the practice of employing flexible or contingent workers is very important because it has a lot of benefits to the organizations. Employing flexible workers is important to the organization because it offers flexibility to respond to market conditions. When the market has demand for more products it is easy for the organizations applying the practice of contingent workers to respond effectively to the varying market conditions. The practice is cost-saving because flexible workers are only employed when there is a need. During the times when there is no work, the organizations are able to save a lot of money as compared to those with permanent workers. The practice of contingent workers is also important because it helps in bridging the skill gap. Most of the organizations of the world today have a shortage of skilled workers, a factor that makes flexible workers very important because they are able to offer skilled labor or services to a number of organizations (Components of an executive compensation plan ChiefExecutive.net|Chief Executive magazine, 2019). For instance, a qualified actuary, which is a rare skill to find, can serve several companies as a contingent worker hence the importance of the practice of contingent or flexible workers. The Bindlestiff Tour company that I researched on can leverage the use of contingent workforce by employing the flexible workers during the peak season of tourism in the country and reducing the number of workers during the off-peak season. For example, between the months of May to September, the number of tourist in the country is high and thus Bindlestiff tours can employ additional workers to serve a large number of tourists.
Components of an executive compensation plan ChiefExecutive.net | Chief Executive magazine. (2019). ChiefExecutive.net | Chief Executive magazine. Retrieved 16 May 2019, from http://chiefexecutive.
Liebenthal, M. (2019). The Benefits and Risks Associated with Contingent Workers. Hcmworks.com. Retrieved 16 May 2019, from https://www.hcmworks.com/
Compensating a Flexible Workforce
The human resource capital in any organizational setting plays a critical role in achieving desired objectives. In addition to the necessity to maintain the employees long enough to ensure that they adapt to the organizational culture, lowering the turnover rates could be important in ensuring that the cost of labor remains as low as possible in the long term. At MedEx, there are significant concerns over the high turnover rates for the medical billing specialists, with the cost of the human resource capital increasing according to the turnover rates (Martocchio 301). Therefore, the effort to collect the employees’ input on issues in the workplace was well-advised as it provides an opportunity to understand issues faced by the employees.