Question 1 Discuss any two (2) compensation components, and any two (2) benefits components that must be considered to ensure that the right candidate is retained in the right job position .
Salary benchmarking is one of the most effective ways of ensuring that your pay is competitive. Knowing that your pay is competitive means that you can respond to employee queries with confidence. However, salary benchmarking is also one of the least followed processes in HR. A quick check of the recruitment websites will tell you what other people are paying for the same job title – but does that mean it is the same job? Is the finance manager of a small housing association doing the same job, and earning the same as the finance manager of a larger manufacturing company? What is the competition like
for finance manager posts? What is happening in the economy that will affect our ability to recruit/retain these posts? Answering these questions for any post you are considering, will help you to identify what your pay issues might be
Consider the following scenario:
Ken Butron, a supervisor with Xylo Co. Ltd. (a large manufacturing company), was contemplating taking a job offer with one of Xylo’s competitors. Ken had been employed with Xylo for the past 10 years, but felt that, (since his promotion to Supervisor, two (2) years ago), his salary did not reflect his new role and the attendant responsibilities. Ken believed that if he accepted the job offer with Xylo’s competitor he would receive the pay
he deserved. Ken shared his dilemma with Paola Gomez (his Manager and Head of Department). After listening to Ken’s concerns, Paola worried about the potential loss of Ken’s talent and input and was convinced that Ken would leave Xylo Co. Ltd, if the pay-offer he received from the Xylo’s competitor, could not be matched. However, Paola is also aware of the ongoing concerns of Xylo’s executives to contain costs and does not believe
that a request for an increased budget to match the pay-offer made to Ken would be approved by Xylo.
QUESTION 1
“An organization is formed to accomplish a specific mission. To do this, it must attract and hire people who have certain knowledge, skills, aptitudes, and attitudes. To attract and retain such people, the organization
provides rewards” (Henderson, 2006).
Question 1
Discuss any two (2) compensation components, and any two (2) benefits components that must be considered to ensure that the right candidate is retained in the right job position .
QUESTION 2
Monty Python, the CEO of LeSTA resigned in 2016 after an internal investigation revealed that he had backdated his own stock options. The company’s internal investigation indicated that the CEO conspired with the LeSTA’s
Finance Officer to alter the dates of his stock option grants between 2007 and 2015. As a result of the backdating, the company needed to restate more than three years of financial results and as a consequence, incurred an additional compensation expense of more than $41 million. Despite the scandal and ongoing investigation at the time of his departure, the terms of the CEO’s employment agreement provided him with the ability to collect as much as $175 million in severance, pension and stock. Because of the backdated options
scandal, the company (LeSTA) adopted a new policy, which required all stock option grants and the terms of the grants be approved by LeSTA’s compensation committee. The company also appointed a nonexecutive chairman of the board, a chief compliance officer, and did not grant any stock options to executives in 2016.
a) Discuss whether the general employee population and stakeholders will perceive the above referenced
programme as fair? Give reasons for your response.
b) To what extent is an organisation’s legal department involved in compensation planning, design,
administration and disclosure of executive compensation? In your discussion, provide two (2) examples to support your response.
Step by step
Solved in 2 steps
