Paper Clip faces immense challenges with declining sales due to competition from online retailers. In most cases, the e-commerce rivals offer products at discounted rates making it difficult for Paper Clip to compete. The recommendation committee suggests creating a compensation plan which covers HR’s hiring and retention concerns while meeting the CEO’s demands to lower the overall compensation cost from 2016. It is necessary to gather employee feedback on their satisfaction with the current compensation terms. The recommendation plan allows the committee to propose a compensation strategy that addresses the needs of the workers, the executive, and the HR department.
Recommendations for Pay Rates Employee Satisfaction
The committee should investigate the prevailing market rates for job roles similar to those at Paper Clip. The rationale is that this will make the company competitive and minimize the likelihood of losing its workers to the competition. Market research also reveals additional insights such as bonuses, benefits, and perks commonly provided to various categories of workers. The cost of living significantly affects workers’ satisfaction with wages (Castro-Palaganas et al., 2017). The committee recommends a starting pay rate of $12.50 per hour based on the current market rate. This figure may be slightly adjusted to accommodate additional factors such as performance and reliability. The committee recommends a top pay rate of $20 per hour. Most employees in this category are expected to earn significantly higher than this rate since they likely qualify for additional perks. It is necessary to consider variations that may introduce disparities in starting and top wage rates.
While pay rate increment plays a key role in boosting workers’ satisfaction, it is necessary to explore additional measures. The committee’s survey data will highlight the key workplace factors that increase workers’ satisfaction. Some expected items include recognition, career growth opportunities, and work-life balance (Neumann et al., 2018). The information will allow the committee to create tailored solutions that address the worker’s needs. It will also allow Paper Clip to save valuable resources by scraping benefits that the workers do not prioritize. The committee will also make specific recommendations for a positive work environment to increase employee job satisfaction. Some likely suggestions include a collaborative culture, working flexibility, and faster promotions (Sherehiy, Karwowski, & Layer, 2007). These objectives will ensure the workers are invested in the company in the long run. The strategy will also be aligned with the company’s goals, milestones, and long-term objectives. The task force recommends sharing this information with the workers since it will allow them to align their plans with the company.
Paper Clip’s CEO insists that the company needs to make budgetary cuts to maintain profitability, which is necessary for offsetting the next fiscal year’s expenses. A 2% reduction in the payroll from 2016 is recommended to achieve this objective. It requires balancing the needs of the HR department with those of the executive. Evaluate company’s spending culture will determine areas where potential savings can be realized (Cascio, 2006). The goal is to cut back on unnecessary expenses without impacting the employees’ satisfaction with the company since Paper Clip cannot afford to recruit replacement talent. The committee should prioritize cost-cutting measures by focusing on expenses that most workers do not utilize. For example, if the survey information reveals that the workers do not care about a wellness program or club membership, the committee will recommend terminating such contracts. The targeted reduction will be done in a phased approach to prevent disruptive changes that could yield a blowback.
Comprehensive Compensation Plan
In addition to the base pay for starting and top-rated workers, the committee needs to examine the role of additional benefits in motivating the workers. It is necessary to ensure that the committee approaches supplemental benefits without preconceptions. This means the task force should be prepared to propose cuts or increments to any supplemental programs depending on the findings. Some key factors that affect workers’ attrition include overtime pay, commissions, and performance bonuses (Prouska et al., 2016). Once the data has been gathered on these provisions, the committee should suggest adjustments that align with the employee preferences and CEO’s budgetary constraints. It will be necessary to compare non-rated benefits such as fixed bonuses to work performance. All workers receiving such perks should justify the benefits via contributions to the company’s performance. Any bonuses that cannot be justified should be rolled back, and the funds used to offset the budgetary deficit.
The committee must assess the impact of various employment packages on the employees’ satisfaction. The commonest additional perks include healthcare benefits, paid time off, retirement, and Sunday premium incentives. The committee should check the legal requirements for each of these packages. It is unethical to deny workers basic benefits such as healthcare insurance (McGuire et al., 2020). The survey will determine the need for non-essential benefits such as Sunday premium incentives. The committee’s recommendations will be guided by legality, workers’ preferences, the CEO’s mandate, and HR’s objectives. The task force must provide appropriate justification for various suggestions. In addition, the team should avail a step-by-step plan for implementing the strategy. Relying on the committee members in the selected plan will increase the likelihood of success since the individuals are conversant with all aspects of the project.
Conclusion
A comprehensive compensation plan must accommodate the needs of multiple stakeholders, including workers, corporate representatives, and human resources. It is necessary to ensure that the plan aligns with legality and ethics for a positive public image and reputation. The committee will address HR and CEO demands by gathering and assessing key insights before making recommendations. It will be necessary to examine the arising themes as they will be required in drafting the appropriate policies. The committee should complete this aspect of the comprehensive list by ranking the compensation elements from the most to the least significant one. Satisfaction and retention should be prioritized in the final report.
References
Cascio, W. F. (2006). The economic impact of employee behaviors on organizational performance. California Management Review, 48(4), 41-59. https://doi.org/10.1177/000812560604800401
Castro-Palaganas, E., Spitzer, D. L., Kabamalan, M. M. M., Sanchez, M. C., Caricativo, R., Runnels, V., … & Bourgeault, I. L. (2017). An examination of the causes, consequences, and policy responses to the migration of highly trained health personnel from the Philippines: the high cost of living/leaving—a mixed method study. Human Resources for Health, 15, 1-14. https://doi.org/10.1186/s12960-017-0198-z
McGuire, A. L., Aulisio, M. P., Davis, F. D., Erwin, C., Harter, T. D., Jagsi, R., … & COVID-19 Task Force of the Association of Bioethics Program Directors (ABPD). (2020). Ethical challenges arising in the COVID-19 pandemic: An overview from the Association of Bioethics Program Directors (ABPD) task force. The American Journal of Bioethics, 20(7), 15-27. https://doi.org/10.1080/15265161.2020.1764138
Neumann, J. L., Mau, L. W., Virani, S., Denzen, E. M., Boyle, D. A., Boyle, N. J., … & Burns, L. J. (2018). Burnout, moral distress, work–life balance, and career satisfaction among hematopoietic cell transplantation professionals. Biology of Blood and Marrow Transplantation, 24(4), 849-860. https://doi.org/10.1016/j.bbmt.2017.11.015
Prouska, R., Psychogios, A. G., & Rexhepi, Y. (2016). Rewarding employees in turbulent economies for improved organisational performance: Exploring SMEs in the South-Eastern European region. Personnel Review, 45(6), 1259-1280. https://doi.org/10.1108/PR-02-2015-0024
Sherehiy, B., Karwowski, W., & Layer, J. K. (2007). A review of enterprise agility: Concepts, frameworks, and attributes. International Journal of industrial ergonomics, 37(5), 445-460. https://doi.org/10.1016/j.ergon.2007.01.007
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