Introduction
Among the most critical factors for the success of an organization, or company is the employee compensation for the work done. Employees are key factors in the production process of the final good or service offered by any firm. Therefore, through a compensation plan, these employees can either be discouraged or motivated to dedicate their energy and best of skills to propel the success of the firm. In this paper, I will focus on XYZ Inc.’s plan while comparing it to that of three companies within the industry, that is, Apple Inc., Google Inc., and Microsoft Inc. Based on these results, I will propose a viable benefits plan.
Background of Organization
XYZ Inc. is a large cap size technology company which develops, manufactures, provides support, and gives licenses to computer software, applications, and devices for entertainment such as music accessories, video gaming tools, and video players. Since its establishment, XYZ Inc. has managed to employ more than 30,000 employees from all over the world in various capacities within the organization. Majority of the company employees work in the IT sector given that it is the main product, and service offered. According to latest reports, XYZ Inc. made more than $5 billion in revenue in the past two years. However despite these successes, the company has plans to expand and scale in terms of the quality of productivity and exploration of new markets.
Delegate your assignment to our experts and they will do the rest.
Compare/Contrast of Industry
Compensation Plan
|
Item |
Apple Inc. |
Google Inc. |
Microsoft Inc. |
|
Long-term equity awards and compensation |
Compensation through the use of time-based and performance-based Restricted Sock Units (RSU). |
Stock ownership programs set by the company to award employees with stock options as part of the profit-sharing program. |
No stock options compensation. Instead, employees are given an opportunity to own a stake of the company through the employee stock purchase program. |
|
Bonuses |
Varying cash bonuses given on annual basis to the executive team and other employees for achieving annual company goals. |
A guaranteed $1000 cash bonus every year and a 10% salary increment . |
Cash bonuses that are not performance based and range between $13,000 to $20,000 per year for all employees. |
|
Base salaries |
The average annual salary at Apple Inc. is reported to be $143,362. |
The average annual salary ranges from $68,775 to $167,828. Thus, the average is approximately $120,000. |
Salary packages ranging from $77,391 to $159,990 a years, thus, an average annual salary of $119,639. |
Source: Glassdoor (2020)
Benefits Plan
|
Item |
Apple Inc. |
Google Inc. |
Microsoft Inc. |
|
Vacation and holidays |
Parental leave for both birth and non-birth parents of up to 18 weeks and 6 weeks respectively. Paid leaves. 21 days of paid leave for all employees once a year. |
Maternal leave of between 18 and 22 weeks, 7 weeks paternal leave and 7 weeks for non-birth parents. Between 15 and 25 days of paid time off for vacation once a year, and an unpaid leave of 3 months long per year. |
Maternal leave of 20 weeks, 6 weeks for paternal leave, and 6 weeks for adoptive parents. 15 days paid vacation leave, 10 days for paid sick-leave, 10 days for paid US holiday leave, and 2 days personal leave days per year. |
|
Insurance |
Healthcare insurance for spouse, and partners of up to 65% coverage. Life insurance Dental insurance Vision insurance Temporary disability insurance Long-term disability insurance Accidental death and dismemberment insurance |
Health insurance Life insurance Dental insurance Vision insurance Temporary disability insurance Long-term disability insurance Accidental death and dismemberment insurance |
Health insurance Life insurance Dental insurance Vision insurance Temporary disability insurance Long-term disability insurance Accidental death and dismemberment insurance |
|
Tuition and education |
Education reimbursements for courses related to work at Apple Inc. Student loan programs for employees’ children. |
Education and tuition reimbursement for related courses to profession. |
Education and tuition reimbursement for related courses to profession. |
|
Discounts |
$500 off a Mac book every three years, a 25% discount on all products, and 15% discount for friends and family. |
Unbeatable deals on products for all employees, which vary annually. |
80% off first-party software purchase, 50% off Xbox, and 50% off accessories such as PC. |
Source: Glassdoor (2020)
Engagement
Employees are not motivated by monetary benefits alone. As much as the benefits might increase their motivation, employee engagement can be increased in other ways. Availing opportunities for furthering their education and career development has been identified as a key factor for improving employee engagement. The employees get a sense of care for their welfare from the employer. Also, use of team building gives the employees’ time off and a space to re-energize, hence improving their engagement. Past surveys have also identified appreciation as a great tool for employee motivation and engagement especially if it is done in public. The employees tend to feel recognized for their input. Similarly, 21 st century employees want a flexible schedule which can allow them fit other personal activities comfortably in a day. Therefore, flexible work schedules have been proved to increase their engagement (Rodriguez da Costa & Maria, 2019).
Proposal for Benefits
‘ Flexi –time’ schedules
The flexible schedules focus on the high-level psychological needs of the employees, which according to the Herzberg theory, produce the best outcomes for motivation (Alshmemri et al., 2017). A flexible schedule will give the employee the impression that they have been held responsible enough to manage time effectively and maintain high discipline. This type of recognition triggers their satisfaction and motivates them to do better as a way of appreciating the gesture, and showing that the trust was not in vain.
Stock options
XYZ Inc. does not yet have the stock option benefit plan. Therefore, by adopting it, the employees are likely to be highly motivated. In line with the Maslow hierarchy of needs, the employees’ motivation would be triggered easily if they are given an assurance of safety and a sense of belonging (Mawere et al., 2016). Stock options provide the employees with the opportunity to become part of the company as owners and belong in the ultimate decision making processes.
Conclusion
Based on the discussed proposal, XYZ Inc. is likely to expand its production levels and general performance since it is expected that the employees would adjust accordingly in terms of the efforts they put in their work. Employee motivation is key in production. Therefore, improvement of the compensations and benefits plan would definitely lead to a significant change.
References
Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg’s two-factor theory. Life Science Journal , 14 (5), 12-16.
Glassdoor (2020). Search salaries and compensation. Retrieved from https://www.glassdoor.com/Salaries/index.htm
Mawere, M., Mubaya, T. R., van Reisen, M., & van Stam, G. (2016). Chapter Three Maslow’s Theory of Human Motivation and its Deep Roots in Individualism: Interrogating Maslow’s Applicability in Africa. Theory, Knowledge, Development and Politics: What Role for the Academy in the Sustainability of Africa , 55 .
Rodrigues da Costa, L., & Maria Correia Loureiro, S. (2019). The importance of employees’ engagement on the organizational success. Journal of Promotion Management , 25 (3), 328-336.
