Revamp Planning Document
Project Charter (Piscopo, 2013).
Executive Summary
Employee compensation and benefits packages have been found to be central components of the employee decision-making process to accept offers and remain in current positions. The company recognizes the need for an update and review of the current compensation and benefits package due to recent company growth and maturity. This project will undertake this revamping process in order to bring the company better in line with its business competitors in order to promote employee alignment, engagement and stronger business results (Yates and Sejen, 2011).
Project Purpose/Justification
The redevelopment of the compensation and benefits package project has been created to address needs within multiple areas of the human resources (HR) department of the company. In particular, present employee job satisfaction, motivation, and retention as well as new hire recruitment and offer acceptance will all benefit from this revamp of the company’s current rewards strategy. By adopting the total rewards compensation approach, the company will become better aligned with the practices of other industry organizations (O’Neal, 1998).
Business Need/Case
As the economy improves it has become more difficult for the company to attract and maintain the highly skilled, experienced employees required for key positions within the company. Potential hire interview discussions as well as employee exit interviews have targeted the company’s current compensation and benefits packages as insufficient when compared to industry norms. With the anticipated growth of the company and future business plan directions, better hiring and retention success will be key to effectively fulfill future company business goals.
Business Objectives
The primary business objects for this project will be to position the company favorably within the competitive landscape for skilled and experienced employees from the point of view of compensation and benefits. Additionally, particular selected benefits of high importance to the company’s mission will be developed resulting in an industry-leading position in that area. Finally, better business results will flow from this project as employees will remain with the company for longer periods of time, thus improving the quality of work product due to great employee experience behind what is being produced.
Project Description
The redevelopment of the compensation and benefits package will provide the company’s employees with the level of compensation and quality of benefits to allow them to focus on the company’s needs in their work and provide stronger business results. The aim of the new package will be to provide job satisfaction, support employee motivation, and provide for a complete employee value proposition (Yates and Sejen, 2011). It will also provide the company with a competitive position in regard to compensation and benefits to attract the skilled workers needed for the company’s future plans and position in the industry.
Project Objectives and Success Criteria
In order to achieve success on the compensation and benefits project, these objectives must be met on time and within budget:
- Develop new compensation and benefits packages to present to the VP of HR by the next 75 days
- Complete list of required software for implementation of the new packages by the next 90 days
- Make software purchase, input, and present the range of packages by the next 120 days
- Obtain final executive review and approval by the next 180 days
- Roll out the new compensation and benefits across the organization by the next 210 days
- Complete communication and training on new compensation and benefits package and software to appropriate employees within the organization by the next 240 days
Requirements
This project must provide new compensation and benefit packages that address all four categories of total rewards philosophy being adopted by the company.
Constraints
The following constraints relate to the compensation and benefits revamp project:
- All newly developed compensation and benefits packages must fit within the allocated budget for employee compensation and benefit
- All performance software must be purchased in accordance with the allocated budget and timeline
- Two HR specialists (2 FTE total) and two employee representatives (1/4 FTE total) will be provided as project team resources for the duration of this project
Assumptions
The following are a list of assumptions. Upon agreement and signature of this document, all parties acknowledge that these assumptions are true and correct:
- Project is fully supported by the project sponsor, stakeholders, and all departments
- The project purpose will be communicated throughout the company prior to rollout
- The HR department will provide additional administrative resources if necessary
Project Scope Statement
The compensation and benefits packages revamp project will include the design, delivery, and execution of new packages throughout the organization based on the total rewards philosophy. The project will examine both the compensation levels of the personnel for the particular jobs and devise pay scales where appropriate. Consideration will also be made for the input of individual, division, and company performance into the level of compensation that employees receive, particularly in regards to bonus percentages. The project will also revisit all benefits provided and attempt to enrich the benefits in areas determined to be of interest for the company. Particular benefit areas will be selected for industry leading positions. As the total rewards philosophy also addresses work environment, consideration will be made to the feasibility of enriched work environments such as subsidized meal programs, onsite daycare, and other onsite benefits.
During the project, all personnel, software, and training responsibilities will be managed by the project team. All project work by the team will be independent of the project team member’s daily and ongoing activities. The project manager will oversee the project spending up to and including the budgeted amounts, and will approve any further funding allocated. The project will conclude with the submission of the final report approximately thirty days after the new compensation and benefits packages are rolled out throughout the organization, all personnel training on the performance software has occurred, and a list of future considerations for compensation and benefits packages is submitted to the VP of HR.
Risks
The compensation and benefits package project has the following identified risks. The project manager will apply risk avoidance or mitigation strategies as needed to minimize the likelihood of these problems:
- Potential disruption to hiring decision-making during package rollout
- Schedule slip such that new packages will not be in place by new business year
- Employee discontent if particular aspects of prior packages are not retained
Project Deliverables
The following deliverables must be met upon the successful completion of the project. The project sponsor must approve any changes to these deliverables.
- Fully rolled out compensation and benefits packages for all company employees that maintains overall budgetary goals for these company expenses
- Enhanced work environment aspects in place as provided by the total rewards philosophy
- Software to implement aspects of the package related to employee performance and employee training for use of such software
- Recommendation list for future additions to compensation and benefits packages as the company grows
Summary Milestone Schedule
Any milestone changes will be communicated in status meetings by the project manager.
Summary Project Budget
Project Approval Requirements
Success for the compensation and benefits package revamp project will be achieved when the new packages are rolled out throughout the company and employees can use the new performance software within the time and cost constraints indicated in this charter. Communications about this project to employees and the update of communication methods for potential employees will also be part the finally approved project. Finally, future considerations for package updates will be documented to allow the company to utilize this input for future, less comprehensive additions to the compensation and benefit packages. Success will be determined by the Project Sponsor, Ms. Helen Racer, who also authorizes the project completion.
Project Manager
Authorization
Approved by the Project Sponsor:
Helen Racer
VP of Human Resources
Communication Plan (Communications strategy, n.d.)
Communications objectives, principles and key messages
The communication objectives include announcing compensation and benefits project and project goals to employees, keep employees updated on progress, and announce and describe the new packages upon finalization. Use of the performance criteria will be explained and training on the performance software provided. One key message is that this project is an improvement on the current packages rather than a cost-cutting exercise. A second key message is the competitive business goal in attracting high quality hires with this project. A third key message is the job satisfaction, employee engagement, and employee retention goals of this project. The final key message will be the content of the new packages and how they address the four major areas of the total rewards philosophy.
Key audiences
Current employees, potential future employees
Preferred/appropriate channel of communication
All company meetings, in-person and online training sessions, company human resource educational materials, company website (current and future employee accessed pages)
Achieving Objectives: Working project plan – Table 4
Work Breakdown Schedule, Table 5 (Piscopo, 2013).
References
Communications strategy (n.d.). Delaware Personnel. Retrieved from
http://www.delawarepersonnel.com/orgdev/documents/workforce_comm_strategy
_template.pdf
O’Neal, S. (1998). The phenomenon of total rewards. ACA Journal. 7(3): 6-18.
Piscopo, M. (2013). Project charter (multi page version). Project Management Docs. Retrieved from
http://www.projectmanagementdocs.com/project-initiation-templates/project-charter-long.html
Piscopo, M. (2013). Work breakdown structure. Project Management Docs. Retrieved from
http://www.projectmanagementdocs.com/project-planning-templates/work-breakdown-structure-wbs.html
Yates, K. and Sejen, L. (2011). Employee value proposition: Creating alignment, engagement, and stronger business results. [PowerPoint slides]. Towers Watson. Slideshare.net. Retrieved from
http://www.slideshare.net/TowersWatson/towers-watson-employee-value-proposition-webcast-presentation-1013
