Paper type: Essay Pages: 11 (2521 words)
Employee Compensation and Benefit at Victoria’s SecretSummaryAs an employee in Victoria’s Secret, My friend noticed the employee compensation and benefits are not distributed fairly among all the employees, which lead to high turnover, low employee morale, and low sales productivity.
Victoria Secret utilize Pay-for-Performance Model to motivate an employee for a better job performance which is measured by meeting the assigned daily goals. The issue is each job position at Victoria Secret is different, yet the goals are very similar for measuring job performance and job compensation; therefore how compensation is measured and how job performance is measured needs to be changed.
In this paper, as a consultant, I will be discussing the importance of compensation and benefits to address why this is an issue at the workplace. Also, I will make a new proper bonus structure to address the issue of unfair compensation and unfair job performance that leads to high turnover, low employee morale, and low sales productivity. The implementation of the new compensation plan will show how the new bonus structure will lead to less turnover, high employee morale, and higher sales productivity. During this process, any changes that will be made will keep the best interest of the employees and Victoria Secret. This paper will start with a discussion of finding to explain what is compensation, why is it essential, along with current issue at Victoria Secret followed by the implantation of the new compensation plan, and then it will be concluded with how to evaluate the new plan than draw conclusion.What is compensation and why is it Essential? Compensation is defined as the cash, and noncash reward employees receive in exchange for their work (Schwind et al., 2016). Monetary compensation is monetary benefits given to an employee in exchange for their service which includes thing such as bonuses (Gupta, 2014). Compensation and benefits are very critical to align business objective with employee’s behavior (Coker, 2015). Compensation and benefits are essential for an organization to ensure employees are working hard while getting rewarded fairly which leads to job satisfaction (Gupta, 2014). Compensation management is essential for employees or an organization since current research suggest it can impact employees’ satisfaction and employees’ turnover (Gupta, 2014). According to (Schwind et al., 2016) compensation management is a vital part of an organization since it determines how well an organization achieves its objectives and if done poorly employees often leave which is costly since it cost a lot of money to recruit, select, and train employees.According to (Gupta, 2014) there are many different types of compensation, but in this paper, only monetary compensation of bonuses will be discussed.Analysis: Current IssuesAccording to Victoria’s Secret website Victoria’s Secret is an organization that dominate the lingerie marketplace along with womenswear, and beauty products with 1,100 stores world wide. My college worked at the one of Victoria’s Secret branch in Saskatoon, SK and noticed that the bonuses are not distributed fairly among the employees with different job positions. The branch located at Saskatoon, SK uses Pay- For-Performance model to assess job performance and determine bonuses. The store located in Saskatoon have three different job positions along with mangers and supervisors. The three different positions are sales associate, cashiers, and sales support generalist. Sales associates are responsible for helping customers as they walk in and are responsible to be on the floor at all time. Cashiers who are responsible for running the cash register at all times while also assisting customers with deals and checking items out. Sale support generalist are in charge of shipment when needed and always restocking merchandise on the floor. The store has different goals for each positions to monitor job performance and to provide incentives such as bonuses. If employees want to gain bonuses they need to either achieve their daily sales goals or exceed it. The problem is when and how the job performance is measured at Victoria Secret to get bonuses. The Victoria Secret store at Saskatoon, SK start measuring your performance as soon as you start work even though the store just opened. For example if someone shift starts from 8:00am to 4:30pm (8 hours of work with two fifteen minutes breaks) they are expected to sell $300 worth of merchandize every hour meaning the worker daily goal is $2100 despite the mall do not open until 9:30am. The Victoria Secret store located at Saskatoon, SK is sited at a mall and the mall opens at 9:30am but Victoria Secret management start to measure employees’ performance at start at their shift so if someone start work at 8:00am they performance is measured starting on 8:00am. The management expects employees to make money from 8:00am to 9:30am despite the mall opening at 9:30am. It is not possible to measure job performance or job compensation when the store is still closed for customers and no is buying anything. The employees feel they are being treated unfairly and cheated on since the daily sales goals are not attainable. Employees working for Victoria Secret at Saskatoon, SK branch feel displeasured with how the bonuses system is set in place therefore leading to radically declined motivation for job performance and job satisfaction. The issue has also cause employees to quit after working for few months leading to high turnover. Implementation of the Compensation Plan The object of this plan is to figure out a more fair compensation plan at Victoria Secret so to do that a new bonuses structure need to be made for Saskatoon, SK location store. The new plan needs to be fair and provide achievable goals for the employees but at the same time align with organization goals. This implementation plan will include discussion about how I will be using different components relating to bonuses but only what is applicable to the current issue and current situation at Victoria secret will be discussed. First there will be a comprehensive job description that needs to be changed and looked at. During the process, a official compensation committee needs to be formed. The purpose of this committee is to make the final review and assessment of changes that will take place. The committee need to consist of people internally and externally. The input of external people is important since it will bring different viewpoints. The committee will include internal people such as store managers and employees. The purpose of manager is to follow along with every step of the process to design the new bonus plan at Victoria Secret. To make a new bonus plan I will look at description of each job, then compare jobs, and then determine goals and incentive pay. Job Descriptions Job description is a written statement that explain what are the duties for a particular job, what are the working conditions of a particular job, and what capabilities are required for the particular job (Schwind et al, 2016). Job description is very critical aspect of compensation especially when it needs to be change. According to (Tyler, 2016) employees should be encouraged to ask HR to review their job description especially if they are contradictions that appear between the job description and what employees do. As a consultant I will make new job descriptions of sales associate, cashiers, and support generalist due to inconsistencies at Victoria Secret store. To make the job description for each position I will do a job analysis because according to (SHRM, n.d.) it helps you understand what each job consist of, how it should be done, how long it should take, and what resources are needed for each job. To provide the best job analysis of a specific job it is best to follow the following steps below according to (SHRM, n.d.). Have employees complete a job analysis questionnaire.Interview employees, asking them specific questions about their job duties and responsibilities.Obtain log sheets from employees with information about each of their tasks and the time spent on each task for at least one full work week.Complete desk audits where you observe employees doing their jobs at different times of the day and days of the week and track what they do and for how long.Interview supervisors and managers, and other employees, clients and customers the employee may interact with while performing the job.Compare the job to other jobs in the department as well as the job grade or job family to show where it falls on the pay scale.So I will start by having all employees complete a job analysis questionnaire, than I will interview all employees with specific job related questions such as what are their duties and responsibilities. With the first two step I will gain employees perspective of their job duties and responsibilities which will help me with details such as sales associates are responsibilities for staying on the floor to help customers, they are responsible to keep the floor clean by organizing merchandises, they also help customers by going back to check if certain merchandizes are in stock. Instead of obtaining log sheets from employees I will directly do the audit myself by observing different tasks and time along with double checking my finding by asking supervisor/managers. External input of customers also will be taken to better determine tasks and time. The purpose of job analysis is to show management that each job is not similar therefore after observation a new job description will be made. After drafting the new job descriptions I will meet up with management and employees to review the new job description, and job analysis so the goals of Victoria Secret management align with employees objectives. The objective is still to determine a better bonus structure so next step is to compare different jobs to get a better idea on how the bonuses should be spread. Comparing Different JobsThe new job description with help of job analysis will help me compare sales associate, sales support generalist, and cashiers to find the most appropriate compensation (bonuses) for each positions. According to (Schwind et al., 2016) there are four different methods for comparing jobs; ranking, point method, classification, and factor comparison. The best method is this situation is ranking especially since Victoria Secret previously used the method Pay-for-Performance which Is similar and ranking method makes it easier to figure out the proper goals for incentive for each employee. Job ranking is often used for small organizations with less than 100 specific jobs and it ranks jobs based on their value to the company (SHRM, n.d.). Every job will be ranked from supervisors to managers to associates. To determine goals for compensation (bonuses) job ranking will be done based on what job requires the most tasks. Once every positions is ranked then how is the bonuses spread among different positions should be made based on who has the most tasks. After this process a final draft of data will be given to the compensation committee to review and to adjust if needed.Determine Goals and Incentives PayReferences Beam, Burton T. & Jr. & McFadden, John J.. ( © 2001). Employee benefits, 6th edition. [Books24x7 version] Available from f. s., Uggerslev, K., Wagar, T. H., Fasina, N., & Bulmash, J. (2016). Canadian Human Resource Management.McGraw-HIll Ryerson .Rose, Michael. ( © 2014). Reward management. [Books24x7 version] Available from Excellent Acceptable Needs Significant Improvement Summary /0.5 point All of the following: Concise summary and description of situation/HR issue. Situation clearly relates to HR concepts. Provides an outline of the paper. Summary and description of situation/HR issue contains unnecessary detail. Situation relates to HR concepts, but it could use further clarification. Any OR all of the following: Difficult to understand what the situation is about. It is not clear how this situation relates to HR concepts. Does not provide an outline of the paper. Justification I did provide a detailed outline about the whole paper; human resources issues and how the issues will be resolved. And the situation is clearly related to HR concepts Application & Integration /1.5 points All of the following: Accurately recognizes, identifies, and integrates all of the relevant course concepts. Connects ideas and information from all sources. Recognizes and identifies most of the relevant course concepts. Makes a few minor errors in using course concepts. Connects most ideas and information from all sources, but some of the ideas are disjointed. Any OR all of the following: Little or no use of course concepts. Inaccurate use of course concepts. Little to no connection (integration) among ideas or sources of information. Paper wanders from one idea to the next. Justification All relevant course concepts are indicated in my bonus plan. Each concept is also linked to the subject matter.Implementation Plan & Implications /6 points All of the following: Steps to implement HR policy/practice follow a logical sequence (e.g., as presented in the textbook and/or in-class). Properly designs and selects criteria for evaluating the HR policy/practice Appropriately compares and contrasts implications of the plan from several perspectives and supports ideas with evidence from multiple reputable sources (e.g., Conference Board of Canada, academic journal articles) Accurately outlines how HR policy/practice aligns with business strategy and/or organizational culture. Steps to implement HR policy/practice follow a logical sequence, but miss a step or contain minor errors. Design or criteria for evaluating HR policy/practice are adequate, but with minor adjustments it could be improved. Appropriately considers the implications of the plan from more than 1 perspective. Supports ideas with evidence from the textbook and a few reputable sources. Any OR all of the following: Steps to implement or evaluate the HR policy/practice do not follow a logical sequence, miss a critical step, or contain several errors. Considers only 1 perspective. Does not consider implications of the plan or those considered are not appropriate for the context. Justification Implementation plan was properly detailed, each component of the implementation was linked to the human resources issue discussed in the paper. Proper example was used in the paper, suggested solution was aligned to the business strategy. Proper criteria was selected for determining the bonus and performance of employees. Proper basis for evaluation was reviewed as well in the paper.Written Mechanics /1.5 points All of the following: Entirely free of spelling, grammatical, and/or punctuation errors. Paper is written in author’s own words. 1-2 spelling, grammatical, and/or punctuation errors. Minor instances where sentence structure detracts from understanding paper. Any OR all of the following: Pervasive spelling, grammatical, and/or punctuation errors that detract from understanding paper Instances where content is repeated almost verbatim (word-for-word) from textbook Justification 99% of the paper is written in my words except for some citation. It is mostly free from some spelling errors and punctuation. Went over the whole paper myself, I had someone else to go over the paper as well. Am pretty sure it is free from grammatical mistakes and punctuation.APA Formatting /0.5 point All of the following: Provides citations for all sources Citations are error-free Provides citations for all sources Citations contain 1-2 errors Any OR all of the following: Did not provide a citation for a source (e.g., news article, textbook) Citations contain several errors Justification Proper APA formatting was used in the paper, citation was done correctly, references were all arranged in alphabetical order.Notes:
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