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Another method is the yield ratio. This ratio is based on the comparison of the number of candidates in one stage of the recruitment process with the number of candidates in another stage. In addition, HR staff can reflect on the quality of specific sources such as universities or local schools (Mathis & Jackson, 2006, McCain, cited in 2007). This source can provide candidates with very specific and targeted qualifications.Page 11
MBA 533 – Human Resource in Management Page 12
MBA 533 – Human Resource in Management Compensation PlanCompensation ComparisonMotors and More, Incorporated has several competing organizations near its office that offer very competitive compensation and benefits programs. For example, Honda offers a variety of programs and services, including, “Base Pay: Merit Payment (annual lump sum performance award to eligible exempt associates), Base Pay: Honda of America Mfg., Inc. Earnings Payment (to eligible non-exempt associates), Bonus Sharing, Overtime Pay (to eligible associates), Pre-tax Spending Accounts, Survivor Medical Insurance, Group Legal Services, Auto / Homeowners Insurance, Company Service-Based Contribution – Ranges from 2-8% of base pay with new hires starting at 2%, Honda Company Match will be 100% of the first 6% contributed by the associate, Retiree Medical, Honda Loyalty Card, Retiree Lump Sum (based on years of consecutive service, Dependent care, Education Reimbursement Program, Associate development courses, and Paid Time Off (2 weeks +), paid holidays (average of 17)”(Honda Motors, 2015, para.1 ). Motors and Mores competition are meeting more needs of their employees which will attract potential staff.Motors and More, Incorporated offers their employees” minimum wages and statutory benefits” (McCain, 2007, pg. 2). The organization must meet local markets in terms of compensation and benefits. The unemployment rate in the areas of Motors and More, Incorporated is very low. This means that potential workers can luxury purchase the best companies that meet their needs. The organization does not want to lead the market in its compensation plan until the budget allows. Although matching local competitors to comparable pay and benefits programs will attract employees. The company wants to carefully design their compensation plans to serve employees at a reasonable price. Buying a variety of different companies can save money by making Motors and More, Inc. Ability to match or meet competitors in terms of compensation and benefits.Alternative Pay MethodsThere are a number of alternative pay methods to reward employees. The Motors & More, Inc. case study mentions those including merit pay, incentives and bonuses, commissions, on-the-spot awards, gain sharing, and profit-sharing (McCain, 2007). Though these pay methods are very similar theydo vary in the way that they are earned or paid and how they affect the employee’s annual base salary.