Paper type: Essay Pages: 5 (1231 words)
Evaluate the existing compensation plan to determine if it is the most appropriate for your company. Explain your rationale During the hiring process when deciding on a potential candidate, and coming to a decision, the new hire must agree with our terms. Sprint operates on a market-based salary compensation plan; this is the method they use to determine salary distribution. Sprint sales department contains commission. We know in today’s world to live comfortably you will have to have a base salary as well to make a comfortable living.
Sprint compensation plan serves several purposes from benefits to wages. Most of Sprint’s employee has the opportunity to earn above the market. Having a compensation plan keeps us on budget and controls cost. The fact that we control compensation cost helps us to give the appropriate raises and bonuses to our top performers. Sprint also has an incentive plan in place which is a part of our compensation plan as well.
Even with a strategy in place; it helps us determine if we need to hire more candidates. Benefits many companies offer benefits when you’re a full-time worker working 40 hours a week or more. Benefits include and is not limited to medical, dental, vision insurances, 401k, retirement, and stock match. Compensation for salespeople with these same benefits could be similar (or the equivalent) as the same benefits given to other full-time employees in other departments throughout Sprint Corporation. Nevertheless: additional costs when calculating the value of adding a salesperson. A $2,500 base salary may fit in the budget, but a combined $1,250 in benefits is what makes things right for this organization.Determine the most beneficial ratio of internally consistent and market consistent compensation systems for the company you selectedOne of the most beneficial ratios of internally and market consistent would be for sprint to focus on the compensation plan they have intact. Right now Sprint is focusing on a consisting compensation strategy that currently consists of its pay structure. Sprint pay structure is defined and based off of a job analysis. A job analysis identifies and determines in details the job procedures and duties that are required that will keep the company up the float. Some of the qualities and responsibilities our job analysis collectively look for as they collect data in regards to compensation practices. Work Environment (hazard, Psychical health, attention) Skill Levels Compensation Job Factor Required Education level ( to determine pay) Responsibilities (entry level supervisor or manager level)With Sprints competitive pay market structure intact we only want to attract the most qualified for our company. Although we are competitive when it comes to the competition outside of Sprint, we will not overpay or pay more than we believe necessary. Excessive pay and excessive pay that is not structure can cause a burden to the company. Sprint competitive pay structure is based on the following Compensation polls and surveys Managing Compensation policies Strategic Analysis Job Formation with external pay scaleSprint Corporation is one of America’s Telecommunication Companies. Sprint provides wireless service and internet services to millions of customers around the world. Sprint as of today it is the fourth largest mobile network operator in the United States. When it comes to market comparison, Sprint has its share of competitors for instances AT&T. AT&T is also a vast telecommunications company. For Sprint to stay competitive with AT&T, there must be a compensation policy.Evaluate the current pay structure used by your company and assess the recognition of employee contributions.When it comes to Sprint pay structure, I believe they choose a market-based structure because there are different pay rates for various jobs. With keeping an open mind that no two employees will have the same skill set or qualifications to complete the same job duties. So, with that being said Sprint pays based on your credentials. Meaning no one makes the same amount of money unless they are entry-level with no experiences. However, Sprint does also offer reward and incentives. But there is always room to advance and make more money. Companies use pay structures for varies reasons. Rather or not pay structure is used to recognize employee performances. Developing a pay structure for a company like Sprint will need to base it off the following structures. Pay Grade Scale: Sprint using the pay grade scales refers to the pay level of the job performed. Pay grade defined by the level of responsibility within a job description of a position, the authority exercised by the situation, and the expansion of time the employee has completed the job ” liabilities of getting to a higher pay grade determined by the amount of work managed of other employees.Market Survey data: market survey data covers understanding the strengths and weaknesses of our competition ” also key jobs for outside comparison. Pay Policy Line: Pay policy is a bit different from how the market pay policy is. The way Sprint uses the pay policy is by setting the pay policy line as a middle ground of the pay structure set to judge the going market rate. The policy line also combines the information from internal and external comparison to determine pay rates for potential and non-potential jobs.These three different pay grades are all the same pay rate. Sprint uses a base pay, incentives and bonuses is the way they pay there, employee. Sprint is massive when it comes to recognition and giving contributions. All of Sprint employees are given cellphones upon being hired with numerous discounts for their families and friends. Sprint also provides recognition to its top performers by providing them with gift cards and including promotion.Make two (2) recommendations for improving the effectiveness of the discretionary benefits provided by the company you selected.In addition to sprint providing a base pay scale, they also offer benefits to their employees. Some of the discretionary benefits provided by sprint are health insurances, short term, and long term disability. Sprint allows medical insurance to employees working 20+ hours per week. Health insurances are necessary and a great help to our employees. Providing Health insurances helps our employers take care of themselves and their families health needs without paying out of pocket health expenses. Short term and long term disability is a great benefit for employees to take advantage of. Short term disability will pay you a portion of your income for a short time while you’re out on sick leave. Long term disability which is also available to sprint employees will pay you a portion of your income after you run out of sick leave and short term disability.There a few drawbacks to short term and long term disability as well. Benefits run out, and their employer is left with nothing to help them until they get better. Maybe Sprint can offer other options to help spread the monies out for these type of situations.Evaluate the types of employer-sponsored retirement plans and health insurance programs provided by the company you selected and compare them to that company’s major competitors.Sprint offers its employees a great retirement package. 401(K) plans employee stock purchase that Sprint takes pride in matching contributions. Sprint also gives its employees discounts on their stock purchases. Sprint also provides pre-tax Roth IRA (401) long-term financial security. Now AT&T, on the other hand, offers there employees a 401(k) pension plan and employee stock purchase but AT&T doesn’t offer the discounts and extra perks that Sprint offers their employees.
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Evaluate the existing compensation plan to determine if it is the most. (2019, Aug 20). Retrieved from https://studymoose.com/evaluate-the-existing-compensation-plan-to-determine-if-it-is-the-most-essay