Revitalizing Employee Retention Through an Effective Compensation and Benefit Strategy at Holland Enterprises
Study on compensation strategies to improve employee retention.
Elijah Nelson
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Revitalizing Employee Retention Through an Effective
Compensation and Benefit Strategy at Holland Enterprises
Imagine you have been hired as a human resources consultant to revise the compensation and
benefit system for Holland Enterprises, a company that has seen a 25% employee attrition rate
due to dissatisfaction with its current compensation strategy. Prepare a proposal addressing the
following:
How does an effective compensation and benefit system contribute to the overall
effectiveness of an organization?
What are the key components you would include in a revised compensation and benefit
system for Holland Enterprises? Provide recommendations for each component.
Convince top management to increase the company's compensation and benefit expenses
by demonstrating the long-term benefits. (Words 1000-2000)
Compensation and Benefit Strategy at Holland Enterprises
Imagine you have been hired as a human resources consultant to revise the compensation and
benefit system for Holland Enterprises, a company that has seen a 25% employee attrition rate
due to dissatisfaction with its current compensation strategy. Prepare a proposal addressing the
following:
How does an effective compensation and benefit system contribute to the overall
effectiveness of an organization?
What are the key components you would include in a revised compensation and benefit
system for Holland Enterprises? Provide recommendations for each component.
Convince top management to increase the company's compensation and benefit expenses
by demonstrating the long-term benefits. (Words 1000-2000)
Compensation and benefit system
2
Attracting and retaining the most talented employees is essential for long-term
organizational success. An important component to attracting and retaining such
employees is the design and implementation of an effective compensation and benefit
system.
Assume the role of a highly regarded human resource consultant hired to review,
analyze, and revise the compensation and benefit system utilized by your city’s largest
employer, Holland Enterprises. The firm employs 3,500 employees, but since 2007 has
lost 25% of its staff. Exit interviews indicate the primary reason a majority of these
employees have resigned is because of a compensation and benefit system that is
perceived to be unfair and uncompetitive in the marketplace.
Present to the management a revised compensation and benefit strategy. Your
proposal should include a discussion of:
How an effective compensation and benefit system contributes to organizational effectiveness.
The principle components of your revised compensation and benefit system for a large-scale organization as
well as a recommendation for each component.
A convincing argument to the already skeptical top managers of this organization to increase their
compensation and benefit expenses.
At a minimum, your compensation and benefit system would include the following
components:
Compensation and benefit philosophy
Pay structure architecture (pay grades, pay ranges, and pay width)
Ratio of base pay to incentive (bonus) pay
Emphases on external equity or internal equity
Principle type of benefits to include (example: deferred compensation match, health insurance, vacation and
sick leave, etc.)
Compensation is the amount paid in lieu of a service or anything from a person. Compensation is
a term everybody is familiar with. This term denotes the payment in lieu of the work done. The
compensation depends on so many other factors and those are, the type of work done, the effort
2
Attracting and retaining the most talented employees is essential for long-term
organizational success. An important component to attracting and retaining such
employees is the design and implementation of an effective compensation and benefit
system.
Assume the role of a highly regarded human resource consultant hired to review,
analyze, and revise the compensation and benefit system utilized by your city’s largest
employer, Holland Enterprises. The firm employs 3,500 employees, but since 2007 has
lost 25% of its staff. Exit interviews indicate the primary reason a majority of these
employees have resigned is because of a compensation and benefit system that is
perceived to be unfair and uncompetitive in the marketplace.
Present to the management a revised compensation and benefit strategy. Your
proposal should include a discussion of:
How an effective compensation and benefit system contributes to organizational effectiveness.
The principle components of your revised compensation and benefit system for a large-scale organization as
well as a recommendation for each component.
A convincing argument to the already skeptical top managers of this organization to increase their
compensation and benefit expenses.
At a minimum, your compensation and benefit system would include the following
components:
Compensation and benefit philosophy
Pay structure architecture (pay grades, pay ranges, and pay width)
Ratio of base pay to incentive (bonus) pay
Emphases on external equity or internal equity
Principle type of benefits to include (example: deferred compensation match, health insurance, vacation and
sick leave, etc.)
Compensation is the amount paid in lieu of a service or anything from a person. Compensation is
a term everybody is familiar with. This term denotes the payment in lieu of the work done. The
compensation depends on so many other factors and those are, the type of work done, the effort
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Subject
Human Resource Management