You are an HR specialist for a national beverage distributing company. The compa

Question

You are an HR specialist for a national beverage distributing company. The company has been losing top executives to rival companies. Exit interviews have discovered the primary reason executives are leaving is executive compensation packages offered by other companies. The company has appointed you to lead a compensation committee, tasked with revamping its executive compensation program.

For your post, describe several elements of a new executive compensation program, including descriptions and examples of base salaries, benefits, perks, short and long-term performance-based incentives, and exit packages. Analyze the impact of the new compensation program to the retention of executives, long-term growth and success of the organization.

Explanation / Answer

Executive compensation is one of the crucial topic in human resource management which can not be avoided to be remain into the competitive in the marketplace. If, people are joining some competitor's organization then it is totally the failure of right compensation plan.

To launch a new or revised compensation plan will be a major step towards the growth and advancement of organization as well as to its human resources. I will devise a new pay and benefits program which will provide weightage to those employees who have vast experience as well as the level of contribution done by them to the organization in the recent years.

In my view the new program will have following advantages for the executives:

1) It will provide every employees a chance to contribute maximum so as to earn substantial cash benefits in terms of incentives. We shall implement the merit based pay structure.

2) To retain the employees we shall hike the pay upto 100 percent with some particular changes under various categories of employees.

3) Apart from basic salary and dearness allowances, we shall offer them some extra benefits like retention bonus, performance bonus, employees referal fee, leave travel concessions, fare to official travel , car , club , celebration packages etc.

4) As a leader , i will analyze the previous exit interview feedbacks so that best pay programs can be developed.

5) This new program will attract many fresh graduates as well as other experience candidates.

6) People will be given reward for any exceptionally well service so that they can be motivated to stay the company for longer terms of service.

7) I will be take participation from the employees so that best compensation plan can be developed. We shall pay above the industry norms by adjusting some fringes benefit.

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