Human Resource Management
Abstract
This study will provide a compensation package of consumer goods industry such as Procter and Gamble. The research will provide the salary, bonuses, health care plans, and different kinds of compensation for initial entry employees, middle management and senior management. The compensation package will include minimum salary, bonuses, health care, retirement plans, vacation, sick leave, holidays, and paid time off.
The organization that was chosen as the subject matter of for this study is Procter and Gamble, which belong to the consumer goods industry. The mission statement of the company is to uplift the lives of global consumers by offering to them branded products and services, which are of superior quality and value. In return, the consumers are expected to reward the company with profitable sales that will create a harmonious working relationship for its employees, stakeholders and the whole community, and experience prosperous lives.
Keywords: compensation, benefits, bonus, leave pay, retirement plan and health care benefits.
Compensation and Benefits
This study will create a compensation package for three classes of employees namely: entry-level employees, middle management and senior management. The compensation package will include the minimum salary, bonuses, health care, retirement plans, vacation, sick leave, holidays, and paid time off. The organization that was chosen as the subject matter of for this study is Procter and Gamble, which belong to the consumer goods industry. The mission statement of the company is to uplift the lives of global consumers by offering to them branded products and services, which are of superior quality and value. In return, the consumers are expected to reward the company with profitable sales that will create a harmonious working relationship for its employees, stakeholders and the whole community, and experience prosperous lives.
The research will provide a study on the compensation package which will include the salaries, bonuses, health care plans, and different kinds of compensation for initial entry employees, middle management and senior management. It will discuss the minimum salaries, bonuses, health care, retirement plans, vacation, sick leave, holidays, and paid time off.
For entry-level employees, the minimum salary is within the range of $54,000 to $70,000 per year. Some of the employees hold the positions such as R & D researchers, executive assistants, account executives, financial analysts, project manager, consumer and market knowledge associate, logistics coordinator and process engineers. The benefits of entry-level employees shall include those who work as part-time employees, regular and full-time employees, who render at least above twenty two and a half (22.5) hours per week. Some of the benefits that they are entitled to include medical and dental insurance, under a designated health care provider that provides comprehensive medical insurance plan for the entry-level employees. These employees are given the option to enrol in a higher deductible plan the designated health care provider. The coverage shall start on the first day of the month after the date of hire of the employee. They shall also be entitled to a life and accidental death insurance that provides short-term and long-term disability benefit (Guo & Burtone, 2010). Aside from these, the entry-level employees shall have a voluntary term life insurance, wherein the premium shall be paid through payroll deduction, and is subject for approval by the insurer. These employees are also given paid parental leave for both the male and female employees. The company will also provide the entry-level employees for a sabbatical program, provided that they are qualified to avail for a sabbatical after they have stayed at least twelfth full-time equivalent calendar year with the company and twelfth full-time equivalent calendar the following year after. The company is also giving the employee who shall be on leave on sabbatical to at least three (3) months of leave at full pay, that is in exchange of vacation within the sabbatical year.
They shall also be entitled to receive Accidental Death or Dismemberment or AD& D plans to protect the employee and their family members in the event of any accident or death. The company shall provide basic coverage based on the salary of the employee, which can cover at least twice the employee’s salary in case of death and total paralysis. The employee is given the option to avail of additional coverage upon payment of the premium. For every employee benefit plan, there is a chart that identifies what coverage is available and the associated cost.
The entry-level employees shall be entitled to avail the flexible benefits plan that will allow them to pay for some of the medical expenses which are not provided by medical insurance, child care expenses, and other transportation expenses. The employees can avail the benefit at time of employment or on January 1 of each year. They shall also be entitled to enrol under the health savings account if you opt to enrol under the higher health care medical insurance plan. For single employees, the company shall pay for $500 on a semi-annual basis, and for the employees with at least one dependent or more, the company shall pay $1,000 semi-annually. They are also entitled to an employee assistance program that will allow them and their family members to avail of consultation services with specialists who shall help them resolve problems or concerns which can affect the job performance of the employee, who is affected with substance abuse and mental health problems. They are also given transportation subsidy allowance upon date of hire. It includes bus passes, parking fee allowance, gasoline allowance, bus and rail transportation fees amounting to $120.00 per month. For new employees, they shall receive $60 subsidy for transportation expenses. The entry-level employees shall be given paid time off for vacation, personal or sick days for at least 30 days in a year.
For middle management, the salary range is within the range of $101,000 to $150,000 per year. The positions under middle management shall include senior account executives, account analysts, section manager, principal R & D scientist, systems manager, finance and accounting group manager, senior R & D engineer, brand manager, senior purchasing manager, senior scientist, senior researcher, senior finance analyst consumer and market knowledge manager among others. For the middle-management employees who shall render service for the company for one year shall be entitled to avail the retirement plan. Just like the entry-level employees, they are entitled to receive medical and dental insurance, insurance and disability benefit, voluntary term life insurance, parental leave, sabbatical program, employee assistance program, flexible benefits plan, health savings account, and transportation allowance (Guo & Burtone, 2010). They are entitled to receive retirement plans that consist of a profit sharing plan for those employees who have rendered at least one full year of employment. For those employees have rendered at least 1000 hours in a year shall be entitled to receive profit sharing plan which shall commence on the next calendar quarter. The contributions for the employees are discretionary, which may range from three to five percent (3-5%) of the annual salary of the employee. Such contributions shall run for a five-year period. The employees are also entitled to enrol under the 401(k) plan were the employees are qualified to participate in the company’s 401(k) plan for the succeeding 401(k) enrolment date after having been employed with the company for at least three months. After rendering one year of service, the company shall match the contributions of the employees, which shall be subjected to the regulations of the IRS.
For senior management, the salary range shall be $200,000 to $350,000 per year. The positions under senior management shall include the chief executive officer, chief operating officer, operating department manager, purchasing manager, logistics manager, supply chain manager, marketing director, human resources manager, associate finance director, director, principal design manager, associate director, senior project manager among others. Just like the entry-level employees and middle management employees, they are entitled to receive medical and dental insurance, insurance and disability benefit, voluntary term life insurance, parental leave, sabbatical program, employee assistance program, flexible benefits plan, health savings account, and transportation allowance. At the same time, they are also entitled to receive retirement plans that consist of a profit sharing plan for those employees who have rendered at least one full year of employment. The employees are entitled to receive profit sharing plan which shall commence on the next calendar quarter, where the contributions for the employees may range from three to seven percent (7%) of the annual salary of the employee.
They are also entitled to avail the company’s flexible benefits plan to pay for some medical expenses which are not covered by the medical health insurance of the company, child care expenses, and other transportation expenses incurred on January 1 of each year. The senior management employees are entitled to contribute to their health savings account if they opt to avail the deductible health plan. For single employees, the company shall contribute $1,000 on a semi-annual basis and those employees with one or more dependents, the company will contribute $2,000 on semi-annual basis. The company shall also give employee assistance program to permit the employee and their family members to seek consultation with specialists to help them resolve their personal issues that can affect the job performance of the employees Some of the typical problems include drug or substance abuse and mental health issues, or other issues which can affect their work performance. It may be in the form of confidential qualified counseling/support that will lessen the stress of the employees, and minimize absenteeism and avoid turnover of employees.They are also given transportation subsidy of $500 per month. They are also entitled to receive paid time off (PTO) for vacation, personal or sick leave credits.
The new expectation that is required of the employers is to provide comprehensive benefits packages that apply by default to the employees (Howe, 2014). By giving these employees the benefits mandated by law and other additional incentives, bonuses and leave credits, it is expected that it will improve their job performance and increased productivity. According to Gyllensten & Palmer (2014), employee benefits lead to increased confidence and effectiveness among the employees. It was highlighted that sometimes the knowledge needed for a better job performance was already present but that increased confidence was the key that helped to improve their ability to deal some aspects of their work they found difficult (Gyllensten & Palmer, 2014).
As part of the mission and vision of the subject company Procter and Gamble, it aims to uplift the lives of global consumers by offering to them branded products and services, which are of superior quality and value. The company must not only concentrate in giving the best quality of products, but to reward their employees to perform better. In return, the consumers and their employees are expected to reward the company with profitable sales and that will create a harmonious working relationship for its employees, stakeholders and the whole community, to achieve prosperous lives.
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