1. Employee Compensation NAME
RWT1 ASSESSMENT
Employee Compensation
NAME

2. OVERVIEW Executive Summary Introduction Research Findings:
Insurance benefits
Performance based
Longevity based strategy
Recommendation 1
Recommendation 2
Recommendation 3
Conclusion
References

3. EXECUTIVE SUMMARY
This is an analysis of three compensation strategies that an organization can use to reward its employees
I came up with three main findings: Health insurance benefit, performance based , and longevity based strategies
I recommend that the organization should select the performance based policy
I recommend this strategy because it benefits both the organization and the employee on a win – win basis
This is an analysis of three compensation strategies that an organization can use to reward its employees. In order to boost employee motivation and morale in the office, it is good to rewarded them for them for their work done. These rewards are an addition to their salaries and wages. In this report I have come up with the three most suitable compensation strategies for my organization. The first on is the insurance benefits. This benefit is going to cover health expenses of the employees. They are not going to have problems with medical bills once they visit a doctor. They will also be free to visit different hospitals and see different specialists who they are not able to see on their regular salary basis. Their immediate families are also going to benefit as well. The second type of compensation is the performance based strategy. It is good to reward employees based on their performance.

4. INTRODUCTION
Compensation is a key factor that seeks to have a direct influence on employee motivation.
Compensation is most applicable to hardworking employees who have to spend extra time in order to get their work done. It is also applicable to all hardworking employees who complete their work on time and at the same give quality work.
I came up with three main strategies that would be used as compensation strategies in the organization
They are; Health insurance benefit, performance based , and longevity based strategies
Compensation is a key factor that seeks to have a direct influence on employee motivation. It is used as a motivation plan to make employees work even better to produce more quality products. Compensation is most applicable to hardworking employees who have to spend extra time in order to get their work done. It is also applicable to all hardworking employees who complete their work on time and at the same give quality work. Organizations are expected to recognize and reward these employees by giving benefits or compensations. In my organization, the human resource team was asked to come up with three different types of compensation strategies. The management saw the need to compensate all employees for the good work that they had done. The human resource team was given this task and came up with the following compensation strategies. They are insurance benefits, performance based compensation, and longevity pay. In this research paper I will begin with insurance benefits. This is a benefit that gives employees extra services that are paid for by the organization using a third party. These benefits are given to employees where they are expected to benefit both the employees and their families (Stephen, 2011).

5. Research Findings
The human resource team has managed to come up with an extensive research on the three compensation methods.
They have come up for the 118 employees in the organization.
The organization should consider adopting the three strategies because they have both short term and long term benefits to both the organization and the employees
Each employee is expected to benefit from the compensation scheme
The human resource team has managed to come up with an extensive research on the three compensation methods they have come up for the 118 employees in the organization. Each employee is expected to benefit from the compensation scheme. The organization should consider adopting the three strategies because they have both short term and long term benefits to both the organization and the employees. The three final compensation strategies presented by the human resource team are; insurance benefits, performance based compensation and longevity based compensation (Agency Management Roundtable, 2012).

6. Insurance Benefits
The most applicable insurance compensation strategy for this company is health insurance.
The human resource team chose this type of insurance is to relive the employees the burden of paying their medical expenses.
Health expenses have been known to have a growing burden to both employees and the employer
. Employees’ health insurance compensation only costs employee between 8% and 10% of their salary
There are various insurance benefits that the organization can offer. In this case the most applicable insurance compensation for this company is health. The human resource department chose this type of insurance because health expenses are one of the major issues facing employees. Every time an employee is sic, they usually ask for loans and advance payments. The human resource team chose this type of insurance is to relive the employees the burden of paying their medical expenses. The expenses will be transferred to a third party who will be paying for the medical bills up to a certain level. According to Claxton and Damico (2011), all employees have a right to a medical cover. Health expenses have been known to have a growing burden to both employees and the employer. By transferring the costs to a third party it becomes less of a burden to them. This will boost the workers motivation because they will hardly think of medical expenses that will face them and their family in future. It is also a method that will help the management keep its employees because of the good offer they will have given to them. Employees will have to pay a small amount of their insurance. Employees’ health insurance compensation only costs employee between 8% and 10% of their salary.

7. Performance Based
This is a type of compensation that gives the employees an incentive to work even harder.
It is given based on the quality of wok an employee has performed.
This strategy benefits all parties.
If one party losses, then the other one losses, and one party wins, the other party wins.
Through this method, the organization will be able to know the employees it can count on
This is a type of compensation that gives the employees an incentive to work even harder. This compensation is given to an employee depending on the work they have done in the organization. It is also given based on the quality of wok an employee has performed. The human resource team chose this compensation strategy because it is going to help the organization improve on its quality of service. Financial increment would motivate any employees to work harder and smarter. This will also be beneficial to the organization because it is going to produce quality services to its people. This type of compensation is usually included in the budget as an expense. All employees are expected to earn this money by working hard. If the target is not reached, it means that the money will not spend and it will be stated in the income statement as an income to the organization (Ojimba, 2004). This income is going to be lower than the anticipated income if the employees had worked hard. This is why employees are pushed even harder to produce quality work.

8. Longevity Based Strategy
There are employees who dedicate their entire life in working for an organization.
This is a type of compensation where employees are rewarded depending on their length of service in the organization.
Employees will realize that they will have to work for more years in order to increase their payments.
Employees will find it a good offer and will dedicate many years of their lives working for the organization
There are employees who dedicate their entire life in working for an organization. This means they have a passion of what they do and work in hard to improve the organization’s performance. This is a type of compensation where employees are rewarded depending on their length of service in the organization. The human resource team discovered that this would help in retaining employees in the organization. The compensation would be given depending on the number of years the employee has worked for the organization. This means the more the number of years, the higher the amount of compensation. This will be made known to all employees. The longevity compensation will be an additional amount to the basic salary. Employees will realize that they will have to work for more years in order to increase their payments. With the above stated compensations added to this one, employees will find it a good offer and will dedicate many years of their lives working for the organization (Richter, 2002).

9. Recommendations
The organization should have a specific team that will be in charge of evaluating employee performance.
The organization should train all employees on the importance of the benefits they are going to be awarded
The organization should give a limit of how much to spend on their insurance cover
From my research I have discovered that there are many different types of compensations strategies that the human resource team could have chosen. There are some considerations that organization should put in place (Ojimba, 2004).
Recommendation 1: the organization should have a specific team that will be in charge of evaluating employee performance. The team will be able to know which employee deserves compensation depending on their work and their working duration in the organization.
Recommenadtion2: the organization should train all employees on the importance of the benefits they are going to be awarded. Each employee should know why they are receiving an extra amount to their salaries and why others are not getting the extra amount. They should also give them the criteria hat will be used to determine their performance.
Recommendation 3: the organization should give a limit of how much to spend on their insurance cover. They should know their restrictions because the insurance cover will only cover the patient to a certain period when the maximum amount is reached. From there, the employee will take control of the situation.

10. Conclusion I would recommend the performance based strategy.
This is the only strategy that benefits the two parties on equal measures.
They either win or loss on equal measure. The health insurance policy only benefits the employees.
The human resource team is in charge of the employees and this is why it is fair for the employees to receive help from the organization
If the organization has to choose one of the three compensation strategies, I would recommend the performance based strategy. This is the only strategy that benefits the two parties on equal measures (Stephen, 2011). They either win or loss on equal measure. The health insurance policy only benefits the employees. The human resource team is in charge of the employees and this is why it is fair for the employees to receive help from the organization. All employees are expected to benefit from this strategy. The longevity strategy will help in creating a good working relationship for both employees and employers. It will create a cohesive and competitive environment for all employees. This show that all employees will deserve the kind of pay they will receive from the organization.

11. REFERENCES
Agency Management Roundtable. (2012). Salary increases should be tied to profitability not longevity. Retrieved from:
Beam, B. T., & MacFadden, J. J. (2001). Employee benefits. Chicago, Ill: Real Estate Education Co.
Claxton, G & Damico, A (2011) Snapshots: Employer Health Insurance Costs and Worker Compensation: Retrieved from
Culpepper and Associates (2010) Salary Structures: Creating Competitive and Equitable Pay Levels.
Sandra L. O, (2001), SHRM Compensation and Benefits Committee, and Principal, HR Associates, a Miami, Florida based human resources management consulting firm
Ojimba, E. (2004). Salary Basics – Developing a Strong Compensation Philosophy. Retrieved from:
Richter, G. (2002). Compensation and Benefits Performance-Based Compensation. Retrieved from:
Stephen M, (2011). Align Pay with Business Priorities to Reap Rewards.