Strategic Compensation Plan-Plastec

Strategic Compensation Plan for the Plastec Company

Introduction

Organizations across the globe continue to struggle with aligning an employee’s individual goals and development plans to the overall strategy for the organization as well as a strategic compensation plan. Yet, for those that are successful in doing so, it has proven, that they enjoy overwhelming results and higher productivity. Although we all know that compensation is one of the most powerful and consistent motivators of employee behavior and production, so aligning employee performance with strategy would seem to be a simple fix just by redesigning the employee’s compensation plan. However, it’s not that simple in the case of textile workers as with other organizations and simply changing the way compensation is structure is not enough. It is imperative to also look at the reward structure as well. These are all key factors that should be considered as the Plastec Company begins to move forward.

The general occupation of a Plastec machine operator is not too exciting and therefore it is hard to recruit effectively and retain for the long term. Given this, a solid strategic compensation plan would be imperative to sweeten the deal by offering some extra incentives like retirement plans, health insurance, vacation leave, or even a sign-on bonus, if applicable, as long as a realistic level of compensation for the employee(s) is set.

Benefits and Compensation

According to Mathis and Jackson (2011), it is important for a company use benefits to help them create and maintain a competitive advantage over other companies in their industry. This holds true for wages as well. Research shows that there is a link between the benefits that a company offers and employee job satisfaction (Mathis and Jackson, 2011). It is not uncommon for a vast number of employers to base their planning decisions on the market. They will do such things as market analysis or reviewing salary surveys to get a good idea...