Introduction
Employees are the most important internal shareholders for the organizations, as they are the one who gives their time and efforts for the sustainability of the organization. In return, they need something that will satisfy their inner appetite completely (Dunne and Morris, 2008). There are two important types of rewards that can be given by the organizations to their employees, known as Intrinsic Rewards and Extrinsic rewards. Bonus, Perks and Remuneration are some of the important parts of extrinsic rewards. The think tanks of organizations always try to deliver the best employment services to their employees by managing the remuneration benefits accordingly. In this assignment, it is required to complete an action plan of Red Cross. Australian Red Cross is one of the many international societies found in the world. It runs number of projects for the public awareness regarding the issue or problem related to their health, and how they can prevent them from any sort of health mishaps. It was founded in the year 1914. The action plan has number of points that needed to be considered to complete the analysis accordingly.
Analysis & Findings
The analysis of the action plan of Australian Red Cross (ARC) has been divided into six different categorizes and points that needed to be analyzed accordingly
- Occupational Groups Coverage
There are numerous employees that deem important for an entity, as they have a direct linkage with the financial and strategic worth of an entity. However, there are some employees who will be given extra attention as compared to other employees. This particular strategy can be referred as favoritism; however in some of the scenarios these aspects are more than essential. Australian Red Cross is a Humanitarian agency that provides thought provoking knowledge to the individuals like first aid and provide emergency services as well.
There are certain occupational groups that should be covered by the company accordingly. The list of these groups is those who are on the subordinate level or on the supervisory level. The main reason behind the same is that these individuals are the one that worked 24/7 for Australian Red Cross, and they should be entitled with awards as well. On the other hand, there are some individuals or occupational groups that doesn’t support from any coverage plan by the company itself, but they will get the coverage as per the industry norms. Such professionals include Upper management professionals and the think tanks of the company. Insurance plans as well as rewarding are based on the seniority of these individuals.
- Sources of Market Survey for Remuneration
- Job Evaluation
A Job Evaluation is a systematic way of analyzing and determining the net value of a job in relation to other jobs that found in an organization. It is used for a systematic comparison between two different job roles related to the worth of the company. This is an important activity for an entity that has a direct linkage with the level of satisfaction of the employees in an effective and organized manner. The two methods that have been taken into account to evaluate the jobs of an operational role and a team leader are Ranking and Factor Comparison.
An Operational Role & a Team Leader: An operational role usually comprises on the shoulder of an operational officer. The job of a Chief Operating Officer can be judge and evaluated easily in ARC in terms of ranking. A systematic rank would be allotted to the role in the company, and then it will compare it with the same role in another peer company, while factor comparison would analyze the basic difference among the job description of the individuals. In this connection, ranking and factor comparison characteristic can also be applied on the role of a team leader in which the capability of the team leader would be analyzed with the same role found in other companies operating in same line of business. The salary offered by Australian Red Cross to its Chief Operating Officer annually is A$ 135,462 (Chief Operating Officer Salary Australian Red Cross, 2014), and according to the benchmark, the annual salary of Chief Operating Officer in Australia is between $ 106,780 to $ 274,106. It means that Australian Red Cross is doing the right thing (Annual Wage Review, 2014).
- Pay Performance Component
Pay Related Performance (PRP) is an important element or component on which the entire salary structure and entitlement of bonus/perks are depend upon. Apart from the basic salary propositions, Australian Red Cross is also in the favor to utilize pay performance based components for enhancing the satisfaction level among their employees. It is one of those strategies through which the level of satisfaction among the employees may be increased considerably and effectively. The salary structure of the company comprises on Gross Salary, deduction of income taxes, inclusion of allowances, medical and utilities amount, and bonus if applicable. The pay for performance component would be adjusted on the name of bonus in the salary slip of the individual. These incentives can be found in the strategy for Australian Red Cross, as the company is very effective in terms of managing their operations and satisfying the needs of their employees and individuals in a significant manner. There is a section in the salary slip that specifically devoted to the incentives for the employees known as the bonuses or perk section, and the company can adjust every component of extra income or bonus in the same category accordingly, which would be essential for them in the future.
- Organizational Assurance towards Salary Packages
If an organization really wants to enhance its productivity in a best possible manner, then the idea of satisfying the needs of their employees is more than essential for them. Every company has its own rules and regulations which the employees have to comply, however there are certain rules and regulations that specifically associated with the industry as a whole, known as Industry norms. Australian Red Cross is lying in the Humanitarian industry, which is one of the important industries of Australia. There are certain regulations that specifically associated with this particular industry including bonuses, perks and fringe benefits.
Australian Red Cross is an authentic and sound organization in terms of maintaining its goodwill and compliance with the ethical standards of the industry, and the company is doing an exceptional job as far as managing their employees for a long span of time period. The company gives salary, bonus, superannuation and perks according to the prescribed structure from the regulatory authorities of labor laws of Australia (LLA). Any breaching of law would not be effective for Red Cross and their future, therefore the company has to comply with all of such standards accordingly.
- Employees Receive Minimum Entitlements
Corporate Ethics and Governance are some of the important aspect that deem important for an organization as far as catering the best services to their individuals. Apart from Corporate Governance of consumers, there are certain ethics that specifically associated with the employee’s empowerment and management. One of those ethics related to the receiving of minimum salary packages and perks to the employees of the company. As per the industry analysis of Australia, there is a minimum salary package or benefits list that should be provided to the employees of the company. This particular dilemma is also addressed in Australian Red Cross as well. According to the fair work act Australia, the minimum wages of the labor is AUD$ 640.90 per week or 16.87 $ per hour (Annual Wage Review, 2014).
The accounting department of Australian Red Cross gives a sort of salary slips to the individuals after getting their salaries in which each of the bifurcation has been accordingly. Employees can claim with all the legal authorities if they are not getting the minimum amount of payment and entitlements. Operating in this way, the company can ensure all of the legal and legislative authorities that the employees are given their rights, and they are also given the minimum amount of remuneration accordingly. ARC can easily complies with the legal authorities, and remain competitive as always.
Conclusion
Ethics and Corporate Governance are two sides of a same picture, and both of these aspects are effective for the sake of a corporation to retain in the business for a long span of time. The regulations related with the satisfaction level of the employees are highly effective and mobilize, and the companies should comply with the legal standards accordingly effectively. This particular aspect is equally beneficial for the Australian Red Cross (ARC) as well. From this entire analysis, it is analyzed that the financial and strategic position of ARC is essential, and the company is satisfying the needs of their employees in a well organized manner. Apart from giving the minimum salary and entitlements, the company is also comply with all the legal requirements that deem important for an entity to become economically prosper and strategically active.
Reference List
Annual Wage Review (2014), [Online], retrieved from https://www.fwc.gov.au/documents/sites/wagereview2014/decisions/c20141_order.pdf Accessed on 2014-Oct-29th
Chief Operating Officer Salary Australia (2014), [Online], retrieved from <http://www.payscale.com/research/AU/Job=Chief_Operating_Officer_(COO)/Salary >, Accessed on 2014-Oct-29th
Chief Operating Officer Salary Australian Red Cross (2014), [Online], retrieved from < http://www.glassdoor.com/Salary/American-Red-Cross-Chief-Operating-Officer-Salaries-E2707_D_KO19,42.htm >, Accessed on 2014-Oct-29th
Dunne, P. and Morris, G. (2008). Non-executive director's handbook. Amsterdam: CIMA.
