A 500 word assignment paper requiring you to build a compensation package and plan for an organization.
There are two aspects to this assignment. First, describe the risks and benefits with leading, meeting, and lagging the market in overall compensation and benefits. Next, choose the appropriate strategy (lead, meet, or lag) for your firm, and provide rationale about why this is appropriate.
Your paper should have both an introduction and a conclusion. For the body of your paper, you want to use headers or topic sentences to show where you are covering what in the paper. For the first aspect of the paper I might use the major header:
Risks and Benefits in Overall Compensation
Then under that header, break out the three strategies as below and describe the risks and benefits under each sub heading:
Leading Market Strategy:
Meeting Market Strategy:
Lagging Market Strategy:
Then for the second aspect of the paper use the header below (or something like it):
Compensation Strategy Appropriate for Firm
Then in this section you will choose the appropriate strategy (lead, meet, or lag) for your firm, and provide rationale about why this is appropriate. Consider some of the following factors in your assignment: 1. Payroll expenses are usually the highest expense at most firms. If you lead the market, this expense can be taxing. 2. If you are pursuing top talent in human capital rich industries (e.g., software engineering), lagging the market may keep you from competing for market share against your competitors. 3. If you meet the market, paying average will generally not attract top talent, and in addition, you will not have the labor-cost savings of a lag-the-market strategy.
There is a minimum requirement of 500 words for the compensation purpose and strategy document.
Consider some of the following factors in your assignment:
Payroll expenses are usually the highest expense at most firms. If you lead the market, this expense can be taxing.
If you are pursuing top talent in human capital rich industries (e.g., software engineering), lagging the market may keep you from competing for market share against your competitors.
If you meet the market, paying average will generally not attract top talent, and in addition, you will not have the labor-cost savings of a lag-the-market strategy.
Any sources used, including the textbook, must be referenced; paraphrased and quoted material must have accompanying citations in APA format.
