HRM FPX 5310 Assessment 3

Overview

This review seeks to evaluate the existing reward and benefits package of Fleet, Farm & Home (FFH). A successful reward program contains several crucial categories that are vital to hiring high-quality applicants with the requisite capabilities and skills required to carry out the job duties and achieve the company’s vision and objectives. A strong total rewards package has the potential to decrease employee turnover and resignations, allowing FFH to experience the rewards of a strong workforce. Employee reward and recognition is a significant element in an effective benefits plan that offers employees equitable reward compared to the competition within the market. In addition, a well-designed total rewards program can extend the tenure of employees, encouraging committed and high-performing employees to stay with the organization.

Typically, the rewards program will cover several key determinants that result in a net-positive program that favors employees as well as potential candidates, including:

• Competitive salary and incentive pay rewards.
• Non-monetary incentives.
• Offering retirement benefits and insurance.
• Employee reward, holiday leave, and time-off programs.

HRM FPX 5310 Assessment 3: Total Rewards Package Overview

It is noteworthy that the best total rewards packages are not one size that fits all. Such packages can come a long way in determining whether one accepts employment or sustains his/her tenure with an organization. While good pay packets and bonuses are important, they are not the only consideration for employees who need insurance coverage for themselves and their dependents. Retirement plans like stock and 401(k) plans are important to the employees who wish to have a long-term career in FFH. Additionally, organizations that offer accumulated leave based on tenure, holiday leave, and employee reward schemes enhance the realization of effort for their employees.

Total rewards package administration and management would be left to the executive members of the human resource department. As FFH starts to grow more into the larger Midwest markets, we must compare and view their total rewards package to that of their competitors. Candidates to be hired will not only consider company prestige but also benefits, rewards, and opportunity at the time of hire. Employers can only use total rewards to attract and retain better candidates.

Market Comparison

A review of prevailing wages in today’s market throughout the United States indicates that the Midwest provides some of the most prevalent highest prevailing wages. In an effort to be competitive, FFH ought to place their compensation packages at the center of prevailing wages for new sales reps in today’s market. The initial wage of new sales reps should range around $55,000 per annum. Aside from wages, incentives offered for sales and bonuses to high producers must be considered.

Making incentives on signed and sold contracts that cost more than $5,000 and are performance-based would be a wonderful place to start. To have a flat rate incentive of $250 for each signed contract as the initial reward would be a good idea. With better performance, top-performing employees within the organization would be given commission bonuses based on their sales worth, at a proposed rate of five percent (5%) on aggregate sales exceeding $10,000. Such incentives would be a worthwhile compensation to employees and keep FFH profitable.

Salary and Incentive Compensation

Non-Monetary Compensation

When creating a total rewards package, consideration must be given to current family structures of employees. About 60% of families with children have two working parents, so parental leave and flexible scheduling benefits are critical. Providing parental leave, flexible scheduling, and prepaid college savings or dependent care savings plan options would attract higher-quality applicants to FFH.

Parental leave is also required in two-income families because emergent needs can arise that necessitate employees leaving early from work, reporting late to work, or taking time off to meet family responsibilities. FFH needs to analyze their attendance and scheduling needs to figure out how flexibility can be incorporated on the part of employees who need it. Whereas some types of work demand strict time schedules, salespeople, for instance, are able to perform work at home when family duties arise.

Parental Leave and Non-Monetary Compensation

FFH should find it essential to take into consideration the individual case of their employees, specifically the parents, by adopting a policy that is accommodating to their needs. Another significant aspect of non-monetary incentives is to offer access to in-house amenities, i.e., free offerings like drinks (bottled water, coffee, etc.) and staff discount schemes. These amenities may range from a gym within the shop for employees and sanitation toilets to complimentary beverage areas within the break room. Providing discounts ranging around 5% on shop-priced FFH products can become a crucial incentive with minimal or no additional cost in addition to the pay or benefits of the staff. Those which are provided complimentary, along with lesser benefits of this type, can make such a huge difference toward employee gratification as well as reflect the admiration for work that the corporation holds.  

Insurance and Retirement Benefits

According to the 2020 United States Bureau of Labor Statistics National Compensation Survey, enrollment in a medical benefit plan is common across most industries, with about 75% of employees enrolling when made available. FFH must have a total coverage of medical, dental, and vision for both dependents and employees. Providing more employer-paid coverage on a percentage basis will make them quality choices for existing and future employees. Private employers usually contribute 70-85% of employee premiums and a smaller percentage for dependents. FFH must offer insurance coverage for employees and dependents the same across the entire company to avoid discrimination.

Retirement plan choices are also a significant component of an effective total rewards program. FFH, being a private sector company, must have a 401(k) or savings plan administrator that will enable employees to contribute some of their income, supplemented with company contribution. Offering a retirement benefit can result in motivating current employees and potential employees to make long-term career commitments with the company. FFH can consider the competitive retirement plans in the market to decide on plans with the most beneficial returns to employees and yet still be within the means of the employer.

Paid Time Off, Holidays, and Recognition

Total compensation statements allow workers to see their entire annual pay package, direct and indirect compensation (SHRM, 2017). Incentives and benefits for employees are included in addition to compensation and insurance benefits. Total rewards schemes allow employers to think about all workers on the basis of productivity, tenure, and the personal time that they need outside the work environment. Employee value is not solely dependent on salary; the time and effort employers put into them are valued by employees, creating a good working environment and enhancing engagement and morale. As organizations show that they value the personal time and interest of employees, committed employees will remain committed.

Granting paid time off (PTO) accruals is a great way to reward the employees for their commitment. While accrual rates will vary by business, standard industry practice is granting eight to ten hours of PTO per month for worked hours. This is for the convenience of employees who go to work daily to receive time off as and when they require it for personal events. Companies whose workers accrue excessive PTO may institute a paid time buyback policy, wherein employees sell back accrued days at one time during a year with the approval of the executive. This measure would be most helpful at the end of the company’s fiscal year or just before the vacation season when most families are hard-pressed financially.

HRM FPX 5310 Assessment 3 Total Rewards Package HRM

Besides personal time away from work, paid holiday for national holidays is also important. Recognizing the importance of heritage and providing holiday time off will most likely appeal to a good body of employees. Even though some of the holidays, like Thanksgiving, fall on the most important shopping days, FFH still can provide incentive to employees who have to work during those holidays through more time off or differential compensation rates. While it won’t be possible to shut down entirely, offering existing employees time off for future use or incentive pay to work can motivate other workers to work holiday shifts.

Employee reward opportunities can motivate employees to work harder and meet personal fulfillment. Awards such as “Employee of the Month” awards, company newsletters to acknowledge excellence in work, and periodic departmental celebrations to acknowledge departmental achievement provide non-monetary rewards that acknowledge employee effort. Acknowledging high performers on a bulletin board within the store or in newsletters for outstanding customer service, academic achievement, or promotions not only acknowledges individual achievement but also demonstrates that the company cares about each member’s personal and professional growth.

Legal Compliance

In order to legally adhere to offering an inclusive pay package, Fleet, Farm & Home (FFH) must evaluate and verify that their business is in compliance with the law. Of perhaps most significance of this evaluation is the Fair Labor Standards Act (FLSA), which offers significant regulations concerning minimum wage, payment of overtime, record-keeping for hours, and child employment (under the age of 18 years). FFH has to pay employees a minimum wage, which varies from state to state, and therefore requires special attention to the location of each branch. The normal workweek is forty (40) hours, and any work that exceeds this quantity must be paid in overtime. Violation of these regulations can have serious legal consequences, including fines, litigation, and even business closure.

In addition to overtime and equal pay, the FLSA also protects youth workers. Children are not allowed to work more than forty (40) hours per week and are not allowed to work after 10 PM on school nights before school days. Another key legal consideration is the Age Discrimination in Employment Act of 1967 (ADEA), which protects persons forty (40) and older against age discrimination for most employment problems, i.e., hiring, promotion, pay, and discharge. Job performance must be the sole basis for employment decisions, not age. The overall compensation package analysis should also be discrimination-free, including disabled persons within the Americans with Disabilities Act (ADA) and benefit recipients under the Family Medical Leave Act (FMLA).

HRM FPX 5310 Assessment 3 Total Rewards Package HRM

Equal employment practices need to be sustained, offering equal opportunity for promotion, benefits, and inclusion in incentive schemes in the organization. The total reward package needs to be accessible to all employees, both current employees and potential applicants. Under FMLA, the employees are qualified to avail this benefit if they have completed one (1) year of service and at least 1,250 working hours. The law seeks to prevent discrimination against employees with medical conditions or providing care for ill family members. Secondly, the Pregnancy Discrimination Act (PDA) prohibits discriminating against pregnant workers in all areas of employment, from hiring and firing to equal pay, promotion opportunities, training, and benefits. Abusing the total rewards package to discriminate against any employee is totally unacceptable.

Recommendation

Preparation of a successful total rewards package for FFH begins with the review of current policies, benefits, and liabilities within the company. The assessment will provide an overall overview to encompass growth, changes needed, and policy compliance for legal reasons. Following assessment, FFH must begin on income and market salary alignment. According to facts presented by the U.S. Department of Labor, FFH is required to offer a competitive range of median wages by job, conformity with federal and local minimums, plus inclusion of the entire compensation package.

For retirement and insurance benefits, FFH will have an exemplary program with coverage of 80% of the insurance premiums paid by the employees, while employees will pay 20% of the monthly premium. Family and dependents have to be insured at 65% coverage, where employees will contribute 35%. This will enhance employee retention and attract potential candidates. FFH must also seek a low-administration-charged retirement plan along with a good past performance return. There should be a comparison with the best industry performers like John Hancock and Nationwide. 3% of annual employee income will be contributed towards the retirement plan by FFH, and a maximum of 6% of the employees’ income is to be contributed by the employees.

Under bonuses and commissions, the firm should have a standard bonus policy for all members of the sales force on a quarterly basis based on sales performance and an incentive policy for exceptional performers in sales on a percentage earnings basis. Holiday pay and paid leave time should be equally offered across the company, and all employees who work a minimum of 100 hours per month should be able to earn 8 hours of non-forfeitable leave time.

Leave Time and Employee Recognition

The Fleet, Farm & Home (FFH) leave policy gives employees the ability to use paid personal time or vacation as needed, including those who are entitled to the terms of the Family and Medical Leave Act (FMLA). Employees are also provided with an equal opportunity to bank one day off per month in addition to any holiday time for the month. Those employees with 80 or more hours of leave banked will be able to sell up to 40 hours of that time in October of every fiscal year, at their present rate of pay per hour.

To ensure higher employee morale, FFH will reward excellent performers each month with an “Employee of the Month” award. The award will be accompanied by a company newsletter of customer compliments, management suggestions for the award, and outstanding milestones in employees’ work and personal backgrounds. With the total rewards package, FFH will be equal to other competing companies. The package is not only about monetary reward but also satisfies the personal needs of employees and offers a nice working environment with good morale and development opportunities.

Commitment to Diversity and Inclusion

These suggestions here in this full package of incentives welcome a diverse work environment with the need for equal incentives and perks in both output and work-related aspects. Remarkably, none of this scheme’s facets shall benefit or disfavor any covered class. Neither policy nor any of the incentives shall be based on sex, race, gender orientation, age, disability, or medical condition. There must be consistent and open guidelines that do not discriminate against any of the factors on the basis of definite conditions.