Recognizing Employee Contribution Research Assignment - 1650 Words

Recognizing Employee Contribution Research Assignment (Coursework Sample) Content: Recognizing Employee ContributionStudents NameInstitutionMethods of determining an incentives planThe purpose of incentive plans I organizations is to spur employees to perform. Different incentive plans may not be ideal for creating an environment that value results, thats why organizations must analyze each plan to derive the best that can serve the interest of a company. The benefits of each plan must be ascertained before it is adopted. The incentive plans present in most organizations include; team based, individual, spot awards and profit incentive schemes.In designing an incentive plan that is efficient and effective, the company must align both the interdependent elements so that they are in line with the organization's strategic goals. It ensures that a transparent behavior is communicated to employees in an organization. The incentive plan must have goals that can be achieved by employees. It should be able to identify employees who are in a position of impa cting the desired results. Key performance indicators should be defined to ease the process of developing the incentive plan (Kossek Van Dynet, 2011). The performance indicator will allow employees to identify ways of meeting targets, change organizational behavior as well as improving their performances. Failure to define the indicators may demotivate employees as they will perceive misalignment between their roles and the reward system in place. The following principles, metrics, and measures should, therefore, be considered in designing an ideal plan; * The purpose of each plan should be the eventual improvement in productivity and employee performance * The target of incentive plans should be based on drivers of profits. * It should be able to select key performance indicators that should be achieved by employees.The above considerations lead the company into two incentive plans that can be adopted based on the nature of the organization. * Targeted key performance indicators * Profit allocationProfit allocationOrganizations use this approach through determinations of annual profits. In most cases, a given percentage of the profits is determined then allocated to employees. A predetermined formula is often in a place that regulates these allocations. The approach targets the overall profits in a financial year. In this incentive plan, the compensation system solely relies on the performance of the company and not individual or departmental performance. It, therefore, calls for the organization to have a robust performance management system. The rest management systems should either be used as a motivation tool to drive employees towards the achievement of individual goals. It also assists in improving efficiency and quality of the work done. If an organization is to implement this plan, then it should clearly define profits in detail. It should disclose the component of benefits that is to be allocated either the net or the gross profits. A threshold and a benchmark should also be selected for this to be implemented. It should additionally communicate the predetermined percentages for employees to be aware (Spearing Connelly, 2011).Targeted key performance indicatorsThe KPI approach will employ both the company, department and individual data. This method calls for businesses to select the most appropriate metric to be used. Each area should have their indicators that gauge performance. You would not expect the same parameters used in individual performance to be used for departments. Departmental indicators can include things like expenses, sales, and overhead costs. For company indicators, metrics such as ROI, EBIT, and customer satisfaction may be used (Wynter-Palmer, 2012).While a company is designing an incentive plan, it must determine its business strategy and ensure that the two complement each other. The program should compensate employees as per their job descriptions. Duties that are extra or were not disclosed in the le tter of appointment should be avoided. These additional functions might be meant to motivate an employee, but in a real sense, they harm them. The right balance should, therefore, be in place.Legal requirements on employee benefitsThere are some laws that companies are expected to comply while setting up their compensation packages. The universal laws that have been implemented are * Employee retirement act. An organization is required to provide an insurance plan that covers the health of an employee upon retirement. A pension scheme is also an option. * Disability Act. The law demands that organizations do not discriminate against persons with disability in their compensation plans. All individuals should be treated equally. * Discrimination on age act. It is set to protect the elderly in organizations against any set of discrimination. The elderly are also entitled to benefits. * Portability health insurance act. The law demands that the information of employees should be held se cret in all the health insurance schemes (Spearing Connelly, 2011). * Consolidated reconciliation bill. The law has been implemented to protect employees from losing their health insurance plans. It is provided in case employees are rendered jobless due to structural changes. It allows employees to keep benefits up to eighteen months where they pay additional amounts on the cost of insurance. * Other laws should also be respected as different stats have different labor legislation that prevents employees in those regions from being discriminated.Companies in the present age are therefore required to provide benefits that comply with provided legal requirements. The benefits include; * Social security. All organizations must contribute to social security fund an equal amount to those provided by employees. * Loss of work insurance. The law changes between states depending on the provisions but an organization is expected to meet towards unemployment of its employees. * Employee comp ensation. The benefits are expected to meet the cost of any disabled staff or those injured while on duty (Spearing Connelly, 2011). * Family leave. Employees are entitled to leave days so that they can spend with their families. Organizations should provide twelve-week paid leave and twelve months unpaid leave. * Any other benefits deemed necessary.To retain staff and keep them highly motivated, a company can provide other benefits such as eye care, dental care, food plans, legal benefits, housing benefits and transport allowance. Such benefits are standard in labor market, and only companies that can match this will be able to attract competent staff that can add value to the organization.Additional benefits to an incentive planFlexible working schedulesIt is a benefit that aims at enhancing work-life balance. The benefit makes it easy to attract and retain female employees. Work life balance prevents psychological stress since employees can perform their duties ensuring that goa ls are matched, and productivity is enhanced.Family functionsIt is the responsibility of organizations to arrange and support events that can promote family bonding. It can be done through picnics, joint dinner and end year celebrations. It will improve teamwork and foster better relationships (Spearing Connelly, 2011).Wellness programsIt is vital to have a healthy team an organization can promote wellness in organizations. It is made possible through recruiting employees wellness programs such as gym and sports. It ensures that employees keep feet and relieve stress.Special group membershipEven with an excellent compensation package, employees to be enrolled in corporate groups. It facilitates career growth and exchange of ideas. It also improves self-recognition, job satisfaction and the feeling of being part of the organization (Kossek Van Dynet, 2011).There are two main components of effective incentives plan i.e. work-life balance and legitimate demand. Management should, the refore, develop an incentive system that guarantees work life at the same time observing all the requirements as per the law.Efficiency of communication techniquesThe incentive plan should be conveyed to staff in an efficient manner. It enables employees to develop a better understanding of the compensation scheme. It will, therefore, improve confidence that impacts on motivation and the overall job satisfaction. The communication strategy should be aligned with HR strategies so that they can complement each other. It will make it easier for management to support a compensation plan when information is communicated in an efficient manner. The common communication strategies that are in use include; * Training workshops * Company meetings * Annual newsletters * Benefit statements