Why are benefits strategically important to employers and what are some strategic considerations.
The Strategic benefits are important to employees as well as for employers in many ways, for example, when an employer has a strong benefits plan with competitive remuneration then ultimately it will benefit the employer to attract more talented pool of candidates in the form of potential employees. Organizations want to attract the best people in the market so benefits can help in attracting high caliber employees and ultimately, it will benefit strategically the employers. Benefits can maximize the performance of the business that is strategically important to employers. Benefits are important to employers because they can build a loyal relationship with the employees that is beneficial for the progress of the organization . There are some important strategic considerations that should be kept in mind while developing a benefit plan for employees like what is the allocated budget, what are the salary ranges, how employees are performing, whether benefits are benefiting employer in the long run. A complete audit and legal compliance should also be considered for strategic benefits.
Describe the nature, components, and issues facing executive compensation in various US industries.
The major components of executive compensation are basic salary, long term incentives and annual incentives in the US as companies struggle to retain and attract the top talent to attain competitive advantage. In different US industries, the executives are rewarded very well. The incentive plans include medical and life insurance, health care and automobiles (Haygroup.com). Apprehensions related to compensation of chief executive officers and other executives in higher positions in American industries have become a serious issue after the economic crisis of 2009. The current objection is now has focused its direction on two issues, the first is, executives are compensated too much and the other issue is that the incentive pay schemes have imperfections because the link between company performance and executive pay is varied at its peak that leads to a dysfunctional behavior . In some US industries, the stock options are restricted to increase the performance of managers and to deal with the current issues.
References
haygroup.com. (2015). Executive compensation. Retrieved 2015, from http://www.haygroup.com/us/services/index.aspx?id=1690
Khurana, J. L. (2010). The Pay Problem. Harward Magazine .
Martocchio, J. J. (2010). Strategic Compensation . Arbana Champaign : Pearson Education .
Scorza, J. (2011). Benefits Can Boost Employee Loyalty. Retrieved July 8, 2015, from http://www.shrm.org/hrdisciplines/benefits/articles/pages/benefits_loyalty.aspx
