Practice of Employee Compensation and Benefits

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Black Corporation, an innovative new technology corporation, has just hired John as the director of their Human Resources Department. As HR Director, John has been tasked with hiring an Administrative Assistant/ Secretary for the advertising department and to develop an employee compensation and benefits package that will be used for that position upon hire. He must elaborate on Black Corporation and the type of organization for which he is designing the package and develop an employee compensation and benefits package for this new position.

He must be able to support his ideas the compensation/benefits package. This is the first time that John has had the task of hiring for Black Corporation and he will need quality resources to assist him to ensure that he is able to make the process as smooth and effective as possible.

What type of Organization is Black Corporation?

To begin with, John has recently been hired by Black Corporation as the director of their HR department.

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John has may years of HR experience and is also a certified Senior Professional in Human resources. BC is a brand new addition to the technology industry, which has just introduced an innovative communications device called the Talk Tablet. This device is a cellular telephone that is also a tablet that can be used for Internet access and app purchases. The head of Advertising, Mary, is in the process of launching a multi million dollar ad campaign and is in need of a Administrative Assistant/Secretary to assist her.

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Although BC has been open for less than a year they have established their stake in the industry with their ability to enhance current products and out sell many of its competitors. They are also known for employee satisfaction. BC considers its employees their greatest asset and offers excellent benefits and compensation. They are a very competitive employer; therefore their employees are all experienced professionals in their area of expertise.

The Administrative Assistant/Secretary Compensation Package Next, John has to develop the compensation/benefits package for his new hire Elizabeth. According to the median pay in 2012 (the most updated reporting) for an AA/Secretary is $35,330 or $16.99 per hour. (“Secretaries and Administrative Assistants,” 2014) BC prides itself in hiring and retaining the cream of the crop in all of the areas they employ. They will pay Elizabeth a base salary of $61,000, due to her experience in this industry and position, and her performance will be evaluated in 90 days for a compensation increase. The base salary for an entry level AA/Secretary will be $51,000. This is $975 more than one of their competitors Apple Inc., according to (“Apple AA hourly pay,” 2014) Additionally John will decide on the benefits package. Susan Hatchfield, management and organization development consultant, who specializes in human resources, explains that “health insurance is the foundation of a comprehensive employee benefits package. Health insurance is the preferred employee benefit of the majority of people who work.

[…] No comprehensive employee benefits package would be complete without employer paid time off from work. […] Short-term disability insurance ensures that an employee will still receive a percentage of income if they cannot work due to sickness or a disabling injury. […] Long-term care is an insurance policy that protects an employee from loss of income in the event that he or she is unable to work due to illness, injury, or accident for a long period of time. […] Various dental insurance plans are available for employers to offer as part of a comprehensive employee benefits package. […] Vision insurance is a lower cost addition to a comprehensive employee benefits package that is provided by employers. […] Life insurance is an appreciated component in a comprehensive employee benefits package. […]” (Heathfield, 2014, para. 6) All of these benefits will be the basis for the package for the Administrative Assistant/Secretary.

Health, dental and vision insurances will be competitively priced with BC covering the majority of the premiums. The short term and long term insurance and a basic life insurance policy will be provided to the employees at no additional cost. BC will also provide a 401(k) investment option to allow employees to invest in their retirement with a 7% match to all investments. They will also allow an employee stock option with the improved dividends of the corporation. She will be given paid time off on a tiered scale, 4 weeks to begin with as well as a 2 day increase every 3 years with a maximum of 6 weeks. All major holidays will also be paid with additional days off for some selected holidays. The package will include 12 stress/sick days per year. Elizabeth has been an AA/Secretary for the Advertising director with Google for 10 years and is excited to make the transition to Black Corporation. Google is the dream gig for many young professional according to a survey conducted by CBS News.

Amy Levin-Epstein, of CBS News’s Money Watch reports that Google offers “a standard package of fringe benefits, but on top of that are first-class dining facilities, gyms, laundry rooms, massage rooms, haircuts, carwashes, dry cleaning, commuting buses – just about anything a hardworking employee might want.” (LEVIN-EPSTEIN, 2011, para. 2) They even offer free beer. With this in mind, John needs to develop a package that can offer some of the great fringe benefits that Elizabeth is used to. Although BC is a fairly new company they have invested in a state of the art facility, and they have done their research.

They incorporated all of the amenities that Google offers as well as onsite training facilities and the option to go to school on campus to earn certifications and degrees. In conclusion, John has completed his task. He has hired Elizabeth as the Administrative Assistant/Secretary for Mary and he has developed a compensation package for the AA/Secretaries of Black Corporation. Elizabeth will start after she submits her 2 weeks notice.


Apple Administrative Assistant Hourly Pay. (2014). Retrieved from,30.htm Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2014-15 Edition, Secretaries and Administrative Assistants, 
on the Internet at (visited June 16, 2014). Heathfield, S. (2014). What’s In a Comprehensive Employee Benefits Package? Retrieved from LEVIN-EPSTEIN, A. (2011). Google Job Perks: Top 10 Reasons We Want to Work There. Retrieved from

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Practice of Employee Compensation and Benefits. (2016, Jun 13). Retrieved from

Practice of Employee Compensation and Benefits

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