discussion week 7
I HAVE ATTACHED TWO DIFFERENCE DISCUSSIONS PLEASE READ AND RESPOND TO EACH. DO NOT PUT BOTH DISCUSSIONS TOGETHER.
DISCUSSION 1
A strategic compensation system can ensure your organization’s success. Through evaluation, planning, and design, having a compensation system will ensure that your compensation practices align with your overall business strategy and pay philosophy, which is market competitive and legally compliant (HR Source, 2020).
The company I chose to research for this week’s discussion is 3M. I chose this company because of the many different incentive programs it offered its employees today; more than 60,000 3M products are used in homes, businesses, schools, hospitals, and other industries. One-third of their sales come from products invented within the past five years, thanks to innovations from the thousands of researchers and scientists they employ worldwide. 3M has corporate operations in 70 countries and sales in 200 plus countries. 3M currently has 93, 000 employees, worldwide.
To ensure that the pay remains aligned with their desire to stay competitive, 3M regularly benchmarks pay and benefits with other comparable companies in size and scope. The compensation with 3M may include two components: base salary and variable pay. While base pay applies to all employees, variable pay is offered to eligible employees and may consist of annual incentives, sales incentives, or other incentives. In my opinion, I feel the pay system is useful because it pays for benchmark met and longevity to its employees.
Total rewards are the monetary and nonmonetary rewards companies provide to attract, motivate, and retain employees (Mathis, 2015). 3M Total Rewards includes a range of plans and programs intended to attract, retain, and stimulate the high-performing employees they depend on for growth and success. 3M Total Rewards break down into three areas: 1) Be rewarded for their efforts with a competitive base salary and variable incentive pay linked to the company and individual performance. 2) They boast about the best and unique resources with high-quality benefits. Medical, dental, and vision plan options, savings and retirement plans, a 3M employee stock purchase plan, and many other resources can enhance their employee’s life, both physically and financially. 3) Growing through challenging work by leading essential projects, working with diverse, talented people, and finding endless opportunities to develop your skills while enjoying access to many perks, programs, and resources. Some of the non-financial rewards programs that 3M assistance employees with are family adoption assistance. 3M being a health-minded employer, they offer free smoking cession class, free gym membership, to name a few.
3M has been operating and providing services to consumers for over a decade since 1902. The company started from a humble beginning to being list as a fortune 500 company for many years. They have been able to do so by changing with the times and being influential innovators in their area of expertise. When looking at the area of compensation, they have been able to maintain their position and standing because they adjust their compensation as the market grows and strengthens.
References:
3M Careers (n.d.). In 3M Science Applied to Life. Retrieved July 30, 2020, from https://www.3m.com/3M/en_US/careers-us/working-at-3m/benefits/
Compensation System Design (n.d.). In HR Source. Retrieved July 30, 2020, from https://www.hrsource.org/maimis/Members/Professional_Services/Compensation_System_Design.aspx (Links to an external site.)
Mathis, R.L., Jackson, J.H., Valentine, S.R., & Meglich, P.A. eds. (2015). Human resources management. 15th ed. Boston, MA: Cengage Learning. Chapters 11 & 12.
DISCUSSION 2
DXP as an organization that communicates to their employees through their employee handbook which is emailed company wide as well as multiple copies displayed throughout the building. In order to attract and retain talent, companies will design reward packages that appeal to many different people. Companies do this by addressing pay and benefits with a total rewards approach which includes all forms of compensation provided in order to attract, motivate, and retain valued employees (Mathis, 2015) The three rewards include intangible, tangible and tangible indirect. Tangible direct rewards include compensation. DXP bases pay on the employees experience, years with the company, and the owners discretion. DXP is a small business which leaves them with a lot of wiggle room to decide pay for each individual employee. The “job requirements” generally determines the starting pay for the job. “Level of performance” determines the amount of any pay increase you could receive. No increase is automatic; every increase is based on your willingness to learn, performance on the job, attendance, and record of accomplishments. (Hess, 2020) A recommendation I have would to implement a yearly review of each employee. This way, compensation and feedback can be discussed in a positive and supportive environment. Instead of the employee always having to bring up a raise. (Payscale, 2017) Second, tangible indirect rewards include health insurance, vacation, paid time off, and disability payment. DXP will pay all full time employees who have been with the company for more than 6 months for all established holidays in the employee handbook. DXP offers health insurance, eye insurance and dental insurance to all full time employees. Every employee will receive 1 week paid vacation time that can be used at the employees discretion. All employees are encouraged to maintain balance in their lives by taking time off during the year. It is assumed that we are all professionals and we will take time off around work demands and customer needs. (Hess, 2020) I would recommend offering more vacation time to employees who have been with the company longer. For example, offering two weeks of vacation for employees who have been with the company for over 5 years. This would show employees that you value them and their years of commitment to the organization. Lastly, intangible rewards include a supportive work environment and positive reinforcement. Intangible rewards are valued by most employees and are an important aspect of the total package (Mathis, 2015) DXP lacks intangible rewards. There is no reward system in place to ensure a positive work environment that supports their employees and any positive reinforcement for achieving goals.
A type of direct pay is variable pay. This type of pay can be directly linked to individuals, team, or organizational performance. The most common type of variable pay is bonuses, incentive program payments, equity awards, and commissions (Mathis, 2015) DXP offers commission to employees who make a sale that results in business for the company. The standard commission is 27%. Commission is only offered to sales representatives. This is an effective strategy for the sales reps but does not have any effect on the rest of the employees. A recommendation I have as a customer service representative, it would definitely be motivating if I were to make commission on customers that I brought to the company.
This essay is not affiliated nor does it display the opinions and ethics of Digital XPress.
References:
Hess, J. (2020). Digital XPress Handbook. Retrieved July 18, 2020, from file:///home/chronos/u-ee39019e88d6db659a8aee764576d681675b6e25/MyFiles/Downloads/Handbook%20July%202020.pdf
Hess, Jodi (n.d.). Digital XPress: One Stop for Printing, Mailing and Design Digital XPress in Albany, NY, is your sing. https://www.dxp1.com (Links to an external site.)
Mathis, R.L., Jackson, J.H., Valentine, S.R., & Meglich, P.A. eds. (2015). Human resources management. 15th ed. Boston, MA: Cengage Learning. ISBN 978-1-305-50070-9
Payscale (2017). Compensation trends: disruption in action at the 2017 total rewards show. [PDF file].
Collepals.com Plagiarism Free Papers
Are you looking for custom essay writing service or even dissertation writing services? Just request for our write my paper service, and we'll match you with the best essay writer in your subject! With an exceptional team of professional academic experts in a wide range of subjects, we can guarantee you an unrivaled quality of custom-written papers.
Get ZERO PLAGIARISM, HUMAN WRITTEN ESSAYS
Why Hire Collepals.com writers to do your paper?
Quality- We are experienced and have access to ample research materials.
We write plagiarism Free Content
Confidential- We never share or sell your personal information to third parties.
Support-Chat with us today! We are always waiting to answer all your questions.
