Gray-BUS3040-Unit 7 Assignment 1.docx - COMPENSATION and...

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COMPENSATION and BENEFITSCompensation and Benefits John GrayBUS3040August 25, 2019John DevillierCapella University
COMPENSATION and BENEFITSIntroductionJava Corp. is opening a new office in London, England. Java Crop is planning on filling one executive-level position with aU.S. citizen who is not already employed by Java Corp. The termof the initial assignment is two years. Being the new HR manager, I must design a preliminary compensation package for this position opening. London is a famously expensive place to live, although it’s not as bad as you might think.In the Economist’s Worldwide Cost of Living Report 2018, London ranked just 30th, its lowest position in two decades (Singapore came first). According to PayScale, the average annual salary in London is £34,991 (or $46,020). According to the UK government, the average London house pricein May 2018was £478,853 (or $629788). Meanwhile, in mid-2017, the Daily Telegraph reported that the average rentfor a one-bedroom flat in central London was around £1,250(or $1,644)per month. Prices of housing start to fall a little once you move awayfrom the center of the city [ CITATION Mov19 \l 1033 ].All these costs of living expensive should be taken into consideration when developing a compensation package for Java Crop. job opening in London, England The term “compensation” refers to the combination of wages, salaries and benefits an employee receives in exchange for work. Compensation may include hourly wages or an annual salary, plus bonus payments, incentives and benefits, such as group health care coverage, short-term disability insurance and contributions to a retirement savings account. A total compensation package can have several components. An “employee compensation plan” collectively refers to all the components in addition to the manner in which the compensation is paid and for what purpose employees receive case bonuses, salary increases and incentives [ CITATION Rut191 \l 1033 ].
COMPENSATION and BENEFITSAt the executive level, the pay scale is very much dependent on both the specific person, their experience and the specific jobs. Executive level pay scale may be significantly different, depending on the needs of the company and the strengths and weaknesses of the individual in therole. A basic compensation package includes base pay, short-term incentives, long-term incentives, benefits, and perquisites. Many executives level employees often receive additional

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