What should Paul do to determine how Plastec compares with other area Essay

What should Paul do to determine how Plastec compares with other area employers in terms of wages and benefits - Essay Example Compensation administration is a section of   human resources focusing on planning, organizing, and controlling the payments that staff gets for the work they carry out. Compensation includes direct forms such as merit, incentive and base pay and indirect forms such as holiday pay, health insurance and deferred imbursement. The final objectives of compensation supervision are: proficient maintenance of a productive  labor force,  just pay, and agreement with state, federal and local regulations based on what companies can meet the expense of. It is a major concern and drawback for Plastec that their turnover has increased. This could further affect their production and the development of the company. Plastec needs to critically analyze their employees working conditions and point out where they lack. One of the reasons for the workers resignation is better packages that are being offered by other companies. Having a sound knowledge of the environment is very crucial for the com pany. Plastec offers less money and health insurance than other companies do. The job is also stagnant as some workers pointed, â€Å"there was no place to go†.   How could Plastec use variable pay to motivate its machine operators to stay? To increase their productivity?     Variable pay, also famous as "pay for performance", is given for particular performance results rather than for routine time worked. While incentives are  not  the answer to all personnel challenges, they can contribute much to motivate the employee. Plastec could use it effectively to enhance the performance of its workers. It is natural instinct of humans to strive for reward, thus variable pays would be a good source of motivation. They could give a month’s free health services, extra pay for over time, or form and evaluate different work groups and rewards on who performs the best. Such positive competition would make them work harder and increase their productivity (Variable Pay: Ho w to manage it effectively, 2011). The majority of the machine operators are in their mid to late forties, some with families, and some without. What types of benefits would you suggest offering?   To make an employee work effectively and efficiently, a company needs to offer him some benefits. One way of keeping a worker content is by offering him bonuses with competitive salaries. Though salary is one of the important incentives that keeps employee satisfied with his job, but it can be the least effective. People eventually get used to their paychecks and increased salary fails to keep the morale of the workers high. Giving out a bonus when employee’s performance is outstanding encourages him to work better (Marr, n.d.). As, majority of the machine operators are in their late or mid forties, there is a very thin chance of them switching jobs. They must be offered retirement benefits. Middle-aged workers usually place a high value on good retirement plans. Employees must b e given reasonable healthcare, vacation days and sick and annual leave. When going out of station for meetings or conferences, the married employees must be allowed to take their spouses with them if feasible. Which employment laws or regulations should Paul pay the most attention to and why? When Paul joined the business firm, the owners gave him two instructions, â€Å"use HR to keep us staffed up so we can grow† and â€Å"keep us out of court†. Hence, it is very essential for Paul to see that the organization is carefully following all the rules and regulations and is free from employee discrimination and harassment. Ensuring the prevention of discrimination and harassment is not just the right thing to do, it is a good business decision. Organizations can avoid costly lawsuits, fines, and settlements by fostering a workplace that is free from harassment and discrimination. The first step is to hire the right people for a specific job to be performed. The workforce hired should be diverse and