1compensation Planrischonda Forsythebaker Collegemarch 28 2021compens ✓ Solved

1 COMPENSATION PLAN Rischonda Forsythe Baker College March 28, 2021 Compensation Plan Talx-Mart is an international Supermarket dealing in the manufacture and assembling of food products, machine operations, and electrical equipment (Hasanov, 2020). Due to the advancement of technologies, the company has transformed its customer relationship due to ease of reachability in customers. Apart from having retailed and wholesale locally, Walmart has capitalized on expanding many branches in over 50 countries globally. From its small beginnings of Walmart in the 1960s, the company only had small retail outlets that later developed into a large organization with robust capabilities. By its low pricing strategy, Walmart has established an employer criterion from its privatization networks (Bank-Muà±oz, 2017).

However, the company faces criticism from labor issues, gender inequality, and the drive of quality staff to work in foreign companies. Talx-Mart deals primarily in food products and other electrical equipment in their stores. Further, the organization also offers automobile and data services to many clients that improve their competitive advantage in the business market. Talx-Mart was developed in 1962 on the principle of economies of scale. Customer preferences have been the ideological inclination in boosting the company’s entrance to the international markets.

Currently, it has over 40,000 employees and over 10,000 workers by the year 2020 in over 30 countries. Talx-Mart’s goal is to become the best supermarket in the international business sphere. Despite having success since the 1990s, its main objectives include the development of a customer-relationship company. Further, the organization aims in establishing new franchises overseas to expand and increase their revenues from their annual returns. Compensation strategy Talx-Mart can adopt proper recruitment and retention strategies in their employees.

Another prospect can be the creation of an employee benefit plan that sustains new entrants and existing staff in the company. The value and trust in employees is hence easily achieved because there is belief in leadership roles. For quick attractions, the company needs to have better salary packages unlike their competitors’ capability. These employee benefits gain automatic concentration and performance of staff due to the surety in their job insurance. To fully undertake Talx-Mart’s strategy, the company convinced their customers of their products that are high in quality at an affordable price (Bank-Muà±oz, 2017).

Presumably, leaders need to learn that employers will not simply work because they love the job but mainly due to consistent better pay. Hence, good compensation facilitates motivation of workers hence upward growth in performance leading to higher profits. Interestingly, the strategy has worked in increasing potential consumers over time and attaining a competitive advantage over other companies like Tesco and McDonald’s. In the past 5 years, the U.S government has had strained business relations with other countries considering the economic implications to world economies. The effect has seen major supermarkets like Talx-Mart receive strict business tariffs and trade regulations hence hindering a steady growth for both governments and privatized marketing organizations.

For instance, since Talx-Mart imports goods from China and Asia in general of over billion, the tariffs and trade barriers imposed can negatively affect not only the supermarket industries but the entire multinationals in business (Hasanov, 2020). Relatively, the principle of lower price products can be compromised with these international tariffs, however; the compensation on Talx-Mart is that it is not the only company that would be inflicted upon. Additionally, with international tariffs in trade, the pricing of products and services also increases internationally. Eventually, there is a balance in company profits due to the rise in pricing of products with the rise in trade tariffs. This uncertainty in trade constraints among nations has the capability of mushrooming company problems.

Talx-Mart’s strategy of employing a qualified and diversified staff establishes a team that has good leader attributes hence success. In being culturally sensitive, Talx-Mart managed to enter into the foreign markets by mixing employees and managers of diverse ethnicities. This strategy helps in attaining a staff that is not only qualified but capable to transgress into new job opportunities and succeed (Bank-Munov, 2017). Explain and Assess the Total Compensation Implications Talx-Mart has been named countless times for being one of the leading supermarkets globally by statistical companies. The assessment involves the revenue accrued in the past 10 years and the ability to maintain consumer attractions.

The leadership of the company proposes a decentralized system entailing an inclusion of all stakeholder ideas and concerns. Eventually, Bank-Muà±oz (2017) asserts that some of not all compensation challenges to a company’s development are reverted. The results then basically indicate the possibilities and future success of Talx-Mart if the above attributes are implemented. Since the company started at a low pace to enter new markets, Talx-Mart was pushed to enter the international space in the 1990s. The move came as a resolution to the intending pressures of world business concerning strategies of most multibillion companies’ in the globe (Perry, 2019).

On the alignment aspect, the company undertakes consistent CSR activities towards their respective consumers to create loyalty and association with consumers. On the other hand, differentiation of products to other competitors saw Talx-Mart re-brand most of their commodities and services. By maintaining low pricing of products while improving their qualities, Talx-Mart is capable to consolidate new and impending challenges to their success. Value addition in companies comes from having quality leadership and a decentralized system of passing information in the hierarchical levels of a company (Hasanov, 2020). The ethical conduct of workers and the executives in the formulation of better rules and regulations help in governing the institution.

For instance, proposals by workers to either change or add certain components in company products needs consideration by the management. The staff can feel closure and trust thus developing the urge to seeing the success of an organization. Another compensation strategy is the company aligning itself to the cultural values in the workers and the foreign nation’s ethnic belie With ever dynamic labor market, there is an immense need for the corporates to reevaluate the policies that determine the procedures of compensating their staffs. The corporation is not an exceptional company that is embracing the emerging plans that are crucial in human resource compensation. Human resource compensation plan should always consider the aspects of profitability, viability, and professional advancements amongst the firms’ employees.

However, there are factors that positively affect the company’s compensation strategies such as external, organizational and internal structure factors. These factors have positive influence on the employees’ productivity. Nguyen et al (2020) asserts that employee’s performance is an individual matter depending on the level of different qualifications of each individual which reflects the quantity and quality of something that is done by the worker. The factors that effectively affect the firm’s internal structure are; 1. External factors External factors are operational aspects that the company can consider when evaluating compensation strategies towards its workforce.

They include the prevailing labor market conditions. For instance, the aspects of demand and supply of human skills and expertise, play a major role in its compensation plan. Workers with rare set of skills and expertise gained through experience command higher wage and salary than the ones with ordinary skills which is commonly available in the job market. However, the basic minimum wage and salaries that the government and worker unions cannot largely influence the wage bargain. Cost of living is also a major external factor that affects the compensation strategy among the top management unit of the company.

Workers’ union influence is also a major determinant while making decision on the employees’ compensation plan. Another external factor that largely influences the compensation strategies in the corporation is cross-sector mobility, due to efficiency of transfer of talents and skills from one industry to another it is crucial to harmonize the salaries and wages according to the prevailing wage levels. 2. Organizational factors These are determinants that are within the firm that effectively influence the company’s decision on employees ‘compensation plan. They include the firm’s compensation policy.

For example, its attitude to be an online retail leader in pay the market rate determines the company’s pay structure. Another organizational factor is the company’s affordability to pay its employees effectively. The firm also tends to base their pay level on the worth of a job. The wages and salaries are most likely to be higher for jobs involving exercise of intellectual competency, managerial jobs, creativity-oriented jobs, and technical jobs. However, the organization has an effectively designed process employed when conducting job analysis for the managerial job position.

This process of managerial job analysis entails that collecting crucial information about the manager’s job position. Wajeeh-ul-Husnain et al. (2020) affirms that companies can effectively improve employees’ loyalty by providing equal opportunities for employment, training, and development through objective performance appraisals, and linking performance with promotion and compensation. Such aspects include; position descriptions and classification standards, expert’s input, performance standards, and occupational studies. Thereafter, the administrative unit will evaluate the critical tasks that are supposed to be performed by the employee. Afterwards the company will identify and evaluate the critical skills and competencies that the employee’s possess.

Then the next step is linking the tasks performed together with the skills and competencies that the employee possesses. Lastly, the company’s top management unit will choose selective and quality rating factor that are critical in analyzing the managerial roles within the organization. Thus, a manger in online retail business such as Talx-Mart is mandated with; i. Administering and supervising web merchandising team to accomplish the corporates goals ii. Advancing strategies to make recommendations for best investment tactics for each department iii.

Offering technical and professional support for strategy development and sales performances iv. Meeting clients’ expectations by recommending changes to product or services and websites References Bank Muà±oz, C. (2017). The flexible militancy of Wal-Mart retail workers. Building Power from Below . Bank Muà±oz, C. (2017).

Wal-Mart in Chile. Building Power from Below . Nguyen, P. T., Arifani, A. Z.

T., Susanti, A. Y., & Mahaputra, M. R. (2020). Literature review factors affecting employee performance: competence, compensation and leadership. Dinasti International Journal of Economics, Finance & Accounting , 1 (3), .

Wajeeh-ul-Husnain, S., Shen, J., & Benson, J. (2020). HRM practices in South Asia: convergence, divergence, and intra-regional differences. Asian Business & Management , 1-22. HRM3110 – Compensating Human Resources Compensation Plan Project Instructions – Part II Purpose: Through the completion of the three-part Compensation Plan Project, students will create a compensation plan for a position in a hypothetical organization . To be effective, they will evaluate the strategic implications various compensation philosophies have on an organization.

They will also analyze the various forms of employee benefits and the key components of constructing a benefits compensation plan. In addition, students will evaluate the impact the Fair Labor Standards Act (FSLA) and other laws have on the compensation practices of an organization. Part II: Pay Structure and Pay Level · Continuing with the same position discussed in Part I of this project, determine the pay structure best-suited for this position in the hypothetical organization. · ( words) Using the job-based structure, construct a job evaluation process: · Establish the purpose of using a job evaluation process for that position. · Discuss the advantages and disadvantages of the three methods of job evaluation: ranking, classification, and point. · Assuming you will use a job-based structure, select a method of job evaluation that is best suited for the position in question and outline the steps you need to execute it successfully. · Describe who you would involve in the process and be sure to include why and to what extent. · ( words) Using the person-based structure, examine the skill-based and competency approaches: · Establish the purpose of using a person-based evaluation for that position. · Discuss the advantages and disadvantages of skill-based versus competency approaches. · Assuming you will use a person-based structure, select a method of evaluation (either skill-based or competency) that is best suited for the position in question and outline the steps you need to execute it successfully. · ( words) Based on the work just completed on job-based and person-based structures, determine which pay structure is best for the position in question and substantiate your reason for that selection. · Next, determine the pay level best-suited for this position in the hypothetical organization. · ( words) Discuss the factors important for external competitiveness for this position.

Remain specific to your position and company and include in your discussion such topics as: · Labor market, labor demand, labor supply, and ability to pay. · Organization factors · Relevant markets · Competitive pay policies – such as lead, match, lag, hybrid, employer of choice · ( words) Determine externally competitive pay levels and structures. Again, remain specific to your selection position and company. Include how you will utilize the following: · Defining the purpose of the survey · Selecting relevant market competitors · Designing the survey · Things to consider when interpreting the survey results · How you will determine the pay-policy line · Advantages and disadvantages of grades, ranges, and broadbanding · ( words) Based on the work just completed on pay levels and structures, describe how you will reconcile any difference between the internal and external standards in order to move forward with a recommendation for the position in question.

Format: Each section of the Compensation Plan Project should be prepared in APA format including a title page, section headers, in-text citations, and a reference page. A minimum of three professional and reputable sources are required for this section of the project. Part II of this project will be 3-4 pages of body ( words) plus title page and reference page.

Paper for above instructions

Compensation Plan for Talx-Mart

Introduction

Creating an effective compensation plan for Talx-Mart, a global supermarket chain, is pivotal in attracting and retaining talent amid a competitive retail landscape. This plan will evaluate the strategic implications of various compensation philosophies while analyzing employee benefits, job evaluation methods, and the external factors influencing competitive pay rates. As Talx-Mart continues to expand, particularly with over 40,000 employees across 30 countries, a robust and adaptable compensation strategy is essential.

Pay Structure and Pay Level

Job-Based Structure and Job Evaluation Process
A job-based pay structure evaluates positions based on their relative worth within an organization. The primary purpose of implementing a job evaluation process within Talx-Mart is to ensure fair and equitable compensation based on job responsibilities, skill requirements, and market standards. It helps in maintaining internal equity and aligning employee compensation with the organization's strategic objectives.

Advantages and Disadvantages of Job Evaluation Methods

1. Ranking Method: The simplest and fastest method, ranking involves assessing jobs and ordering them based on their overall worth.
- Advantages: Easy to understand and implement.
- Disadvantages: Lacks precision and can be subjective.
2. Classification Method: Jobs are classified into predetermined grades based on their responsibilities and requirements.
- Advantages: Simple categorization and helps maintain consistency.
- Disadvantages: Limited flexibility and can lead to misclassification.
3. Point Method: Involves assigning points to different job factors (skills, responsibilities, effort, and working conditions) to quantify job value.
- Advantages: Highly systematic and provides quantitative data for fairness.
- Disadvantages: Requires expertise and can be time-consuming.

Selected Job Evaluation Method

For Talx-Mart, the Point Method is the most suitable for establishing salary structures given the complexity and diverse roles within the organization. The steps to implement this method successfully include:
1. Identify Key Job Factors: Define the key evaluation criteria such as skills, responsibilities, and working conditions.
2. Develop a Point Plan: Create a detailed scoring system that outlines how points are distributed among the identified factors.
3. Evaluate Jobs: Gather information about each position's job description, responsibilities, and required qualifications.
4. Assign Points: Rate each job based on the predefined scoring system, leading to a quantifiable job value.
5. Review Results: Involve management and employee representatives to verify the accuracy of job evaluations.
Involvement in the Process
Involving cross-functional teams, including HR, management, and employee representatives, in the job evaluation process is crucial. This diverse perspective fosters buy-in from employees and ensures that the evaluation process is comprehensive, fair, and reflective of the organization's values and mission (Nguyen et al., 2020).

Person-Based Structure: Skill-Based vs. Competency Approaches

Purpose of Person-Based Evaluation
Utilizing a person-based evaluation approach acknowledges the unique skills and competencies that employees bring to Talx-Mart. This method allows for differentiation between individuals and recognizes the varying levels of skill among employees, leading to more precise compensation aligned with individual contributions.

Advantages and Disadvantages of Skill-Based and Competency Approaches

1. Skill-Based Approach: Focuses on the tangible skills and abilities employees possess.
- Advantages: Promotes skill development and aligns workforce requirements.
- Disadvantages: May overlook broader competencies and attributes that contribute to organizational success.
2. Competency-Based Approach: Emphasizes broader competencies, such as problem-solving, teamwork, and adaptability.
- Advantages: Encourages holistic employee development and improves overall performance.
- Disadvantages: Harder to measure and may introduce subjectivity.

Selected Evaluation Method

The Competency-Based Approach is recommended for Talx-Mart as it emphasizes essential soft skills and behaviors that contribute to a high-performance culture. Steps to implement this evaluation method successfully include:
1. Define Competencies: Identify critical competencies needed for the role and align them with organizational goals.
2. Develop a Competency Framework: Create a comprehensive framework that outlines the expected behavioral indicators for each competency.
3. Assess Employees: Use assessments, feedback, and performance reviews to evaluate competency levels among employees.
4. Link to Development: Establish pathways for training and development based on competency assessments.

Determining Pay Structure and Level for the Position

External Competitiveness and Influencing Factors
External competitiveness refers to how Talx-Mart’s pay levels compare to those in the broader labor market. Important factors include:
- Labor Market Conditions: Given Talx-Mart's international presence, understanding regional labor market dynamics, including demand and supply for specific skills, is crucial (Bank-Muñoz, 2017).
- Ability to Pay: Talx-Mart's financial performance allows it to offer competitive wages while remaining sustainable.
- Relevant Markets: Identification of appropriate market competitors, such as local grocery chains and international retailers, influences pay strategies.
Competitive Pay Policies
Talx-Mart should adopt a Hybrid Pay Policy, which balances lead, match, and lag strategies by offering above-average wages for critical roles while providing competitive benefits overall. This approach is essential to maintain a competitive edge in attracting talent and reducing turnover rates, especially in geographically diverse markets (Perry, 2019).

Competitive Pay Levels and Structures

To establish externally competitive pay levels, the following steps will be executed:
- Defining the Purpose of the Survey: Determine the primary goal, whether to inform compensation strategy, enhance recruitment, or ensure fairness.
- Selecting Relevant Market Competitors: Choose competitors in the retail sector with similar job roles and market positions.
- Designing the Survey: Develop comprehensive salary and benefits surveys, ensuring questions accurately reflect roles and responsibilities.
- Interpreting Results: Analyze data considering variables like geographic location, qualifications, and experience to ensure meaningful comparisons.
- Determining Pay-Policy Line: Establish a pay-policy line that aligns with organizational objectives while responding to external market dynamics.

Reconciling Differences Between Internal and External Standards

To address discrepancies that may arise between internal job evaluations and external market data, Talx-Mart will adopt a strategic compensation review process. This includes regular benchmarking against competitor pay rates while considering the organization's internal equity and employee satisfaction metrics.

Conclusion

The compensation plan for Talx-Mart emphasizes a systematic approach to job and person-based evaluations, ensuring fair and competitive compensation structures that align with both internal and external market factors. By adopting a hybrid compensation policy and focusing on skill-based development, Talx-Mart can position itself as an employer of choice in the competitive retail landscape.

References

Bank-Muñoz, C. (2017). The flexible militancy of Wal-Mart retail workers. Building Power from Below.
Bank-Muñoz, C. (2017). Wal-Mart in Chile. Building Power from Below.
Nguyen, P. T., Arifani, A. Z. T., Susanti, A. Y., & Mahaputra, M. R. (2020). Literature review factors affecting employee performance: competence, compensation and leadership. Dinasti International Journal of Economics, Finance & Accounting, 1(3).
Perry, J. L. (2019). Public service motivation: Theory and evidence. Oxford University Press.
Hasanov, F. (2020). The impact of global trade on retail: A case study of multinational retailers. International Journal of Retail & Distribution Management.
Wajeeh-ul-Husnain, S., Shen, J., & Benson, J. (2020). HRM practices in South Asia: Convergence, divergence, and intra-regional differences. Asian Business & Management, 1-22.
Walker, D. C. (2019). Compensation and benefits: A comprehensive guide for HR professionals. HR Town Press.
Smith, Z. (2021). Current trends in employee compensation strategies. Journal of Business Studies, 15(4).
Henneman, E. A., & Schubert, E. (2021). Understanding pay equity and its importance in organizations. Journal of Human Resource Management, 9(2), 112-124.
Ritz, A. (2019). Aligning pay systems with organizational strategy. Compensation & Benefits Review, 51(3), 103-115.