Overall pepsicos success shows that the company can

This preview shows page 10 - 13 out of 14 pages.

that are a culmination of the environmental factors. Issues Related to Compensation and Benefits PackagesCompensation and benefits is a topic that is prone to having issues associated with it. Issues related to compensation and benefits packages are mostly mechanical issues within the plans and policies such as improper pay range or structure. Sometimes issues like excessive executive compensation can have a negative impact on the public image which is much worse than a mechanical issue (HR People, 2009). This is because the public image has implications onall stakeholders. In relation to PepsiCo, the issues seem to be related to their compensation structure. More specifically in the rates their employees were receiving versus the rates of
Compensation and Benefits11PepsiCo’s competitors like Coca-Cola and 7-Up. With a lot of competition, it is especially important that PepsiCo utilize a compensation structure and range that not only fits the position but stays competitive with the industry standards (McDonnell, n.d.). Based on employee reviews on websites like Indeed and Glassdoor, PepsiCo pays well but the benefits vary and sometimes don’t match up to competitors. Inconsistencies in pay are bound to happen especially in a company as large as PepsiCo with over 250,000 employees. Although it is a small issue, it wouldserve PepsiCo well to standardize their compensation and benefits package across all divisions and positions. This is because having varying compensation and benefits for similar positions can cause unhappiness among employees. Standardizing would help to minimize the inconsistencies and keep employees on a more level playing field. Whether the issue related to compensation and benefits is big or small, a successful company will have a plan to navigate it. ConclusionIn conclusion, compensation and benefits packages seem to be simple in concept, but there is a lot more behind the workings of the policies than one would assume. The HR department is generally held responsible in determining these sensitive factors. They must work parallel with the goals of the company, developing a compensation structure and benefits package that can be afforded by the company, and is enticing to a possible candidate in a competitive labor market. Once an employee has been hired, it is also important to communicate these benefits to ensure full and proper usage of them. This helps to ensure a hire ROI on the benefits offered. HR must also be aware of possible outside or environmental factors that can an impact on the overall compensation and benefits package offered by the company. It is also important that a company’s HR is well versed in the possible problems that may occur with
Compensation and Benefits12compensation and benefits, so that when a problem does occur it can be taken care of effectively.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture