Strategic Plan Benefits

Benefit Structure

The fundamental goal of any strategic plan, particularly an employee benefits strategy plan, is to address internal and external issues that will influence a successful benefits program that will help the company expand. It helps gain consensus among important business stakeholders by developing a compelling, long-term strategy (Martocchio, 2020). When CapraTek chooses to create a 3-5 year benefits strategy, they gain a place at the decision-making table to solidify their position as a trusted advisor, fundamentally changing their role. Organizational structures can aid businesses in streaming their operations. CapraTek business operations are accomplished effectively and efficiently when business functions are organized into departments. CapraTek can save money by minimizing the number of operations that are performed by multiple areas. Having a benefit structure is important for every organization (Martocchio, 2020). The benefit structure determines and identifies the organization’s hierarchy. The organizational structure helps CapraTek decide on wage grades and ranges for each position.

CapraTek highly prioritizes its employees’ benefits. The reason is that employee benefit is important and helps in fostering their continuity and ensures high employee retention. Security is also highly considered in CapraTek because it offers employee protection. Many other benefits are offered to CapraTek’s employees to expect that they will perform better and increase the organization’s productivity. They include retirement benefits, discretional benefits, and legally acquired benefits. The legally required benefits that the employees in the organization are offered include; Social Security and Medicare taxes, which are paid by CapraTek and part of it paid by the employees. Others include Federal and State unemployment, overtime compensation, and workers compensation taxes fully paid by CapraTek. The retirement benefits offered to the employees prove the validation of the statement made by the US that employee protection arrangements are to be done by the organization and not the government. Even though US laws control retirement programs, they are not required by the law. The discretional benefits offered by CapraTek are those that are not mandated by the law but still offered when need be. The organization offers discretional benefits such as sick leave, vacation leave, maternity leave, health, life insurance, and pension plan benefits.

Alignment to pay structure

A pay structure includes the collection of the wages and levels related to jobs found within a certain hierarchy. The main objective of having a pay structure within an organization is to align the reward strategy with the business strategy and the benefits offered by the organization. The pay structure used by CapraTek helps in effectively ensuring and maintaining equity and fairness in the organization. The organization’s pay structure will help ensure the growth of the employees and the organization (White, 2017). The benefit structure of CapraTek effectively aligns with its pay structure in many ways. The benefits prioritized by CapraTek and the programs they offer to the employees reward the employees on their potential. The programs are given based on the contribution of every employee to the organization and how they perform in the organization (White, 2017). The benefit structure aligns with the pay structure in that it offers job enrichment and flexibility in the work schedule.

With the benefits, the employees will prefer to perform jobs with higher benefits and characteristics. Therefore, they will be able to improve their performance, which also aligns with the pay structure of CapraTek. The employees get the chance to train and learn specific jobs easily; them also become more involved and engaged in the task they perform. The benefit structure used by CapraTek aligns with the pay structure since they encourage accountability and a lean process in the organization’s pay structure (White, 2017). Employee engagement is another significant part of the benefit structure that contributes to the success of CapraTek. When there is a random benefit structure and a way of compensation, the pay structure, and the reward structure will be significantly affected. Therefore, CapraTek is trying as much as it can to ensure the benefits and pay structures are effective and align together for the organization’s success.

Evaluation

The strategy consideration of the organization will be evaluated based on the total rewards system of CapraTek and the employees and organizational performance. The total rewards strategy of CapraTek involves the significant aspects of compensation and the regulations. Designing an effective compensation program is important for every organization. The overall organizational structure and the pay structure must all be considered (Sarkar et al., 2021). The evaluation will also involve taking into consideration the organization and the employees. The first consideration of the organizational performance is considering the company’s value to a specific job specification compared to that of the competitors.

Equity and fairness should be part of the benefits and reward structure to ensure retention of employees and high individual performance. A better reward structure will also prevent cases of employee overpayment and underpayments (Sarkar et al., 2021). When the organization has a well-articulated strategy and consideration, its success will be evident. Aligning the pay and other significant benefits will help the organization achieve its goals and employees (Sarkar et al., 2021). The individual consideration of CapraTek include rewarding their performance through; increasing their annual benefits and compensations, promotions, bonuses and providing them with long-term and short-term incentive compensations. It also promotes policy that eliminates discrimination and ensures employees’ safety.

References

Martocchio, J. J. (2020). Strategic compensation: A human resource management approach (10th ed.). Boston, MA: Pearson.

Sarkar, J., Jena, L. K., & Sahoo, K. (2021). Mediating role of need satisfaction on total reward management towards retention: a conceptual framework. Vilakshan-XIMB Journal of Management.

White, R. S. (2017). Executive pensions and optimal pay structure. Advances in Quantitative Analysis of Finance and Accounting, (15), 215-244.