Evaluating And Hiring Various Pay Plan

Evaluating And Hiring Various Pay Plan

Question 1

If I was an applicant the HPV program which would be most attractive to me would be the high risk plan. This entails getting a starting salary that is about 10%-30% below the average in the market and being allowed to participate in the annual bonus plan that ranges from 0%-60% of the current salary. This plan is very attractive since one is entitled to participation in the bonus plan. When taking into consideration of the bonus one will realize that they can actually earn a lot of money from these bonuses. This is because the bonuses are calculated as a percentage of the current salary by a percentage as high as high as 60%.despite the fact that I would be attracted to this plan the fact that the starting salary would be 10%-30% below that in the market would be a turn off since one might think they can get a better salary somewhere else in the market. I would definitely choose the high risk plan simply because of the high percentage on salary that is got annually in form of bonuses.

Question 2

The HVP program will lead to an increase in in the job offer acceptance. This is because of the three plans they have in place. Individual job applicants have three plans to choose from which will be appropriate to them. The job applicants will thus go for the most suitable plan for them. Another reason is the fact that they are also free to change from one plan to another after two years. Most job seekers will feel very comfortable if they have freedom to move to another plan in the case where they are not satisfied with their initial choice .therefore, most applicants will accept job offers since the HVP program is flexible and one can has an option of choosing a plan they would feel most comfortable with the conditions.

Question 3

The program will lead to a decrease in the turnover. This is due to the fact that the HVP program provides an opportunity for the employees to make a choice of a plan that they are satisfied with. This means that since the employees have this freedom then they are the only ones to blame incase they are not satisfied with their pay. They will not blame the leaders since they are the ones who made this decision .they are solely responsible for their working conditions and salary since they make this decision from the word go. Therefore; there are very limited chances of employee dissatisfaction. Thus employees will not have any reason to quit from the organization. Incase they are not satisfied with the plan they chose they can easily switch to another plan therefore they will not quit from the organization because of this freedom. This program will definitely lead to a reduction in the employee turnover if it is implemented.

Question 4

The current associates will be very delighted about the HVP program.as a matter of fact they will welcome this idea and fully embrace it. This is due to the fact that the program will bring with it the freedom to choose the pan they will fall under. This means that these associates will now have the power to choose their salary group as well as their eligibility to bonuses. They will also have a choice of the working hours since they are all stipulated by the particular program they will choose. The associates will accept this new program since it is not rigid as the previous system they were under. The program is created based n the needs of each employee therefore they will accept it as their needs will be taken care of. There will be absolutely no problem with the managers selling this idea to the current associates as they will easily accept it.

Question 5

The HVP is a new program to be implemented and just as any new program there are some challenges that the HR will face as they try to enforce it. First of all the HR will have a problem when it comes to trying to relay the information to current associates. Most people resist change.it will not be easy to convince the current associates of the new program since most of the are used to the old system that exist.it might also cost a lot of money for the HR to fully implement these new program as the organization will have to go out of its way when it comes to the funding of this new program. On the part of the hiring manger it might be difficult to negotiate the starting salary of job seekers. They might fail to agree in some instances and this might lead to turning down of the jobs. Therefore, the hiring manger has a very difficult task of ensuring that they come to an agreement on the salary otherwise no one will end up l accepting the job offers.

Question 6

As much as the program might appear attractive there are some changes that I would personally recommend to be made on the program. First of all I would make better offers on salaries under each there plans. Job seekers might decline the offers simply because the salaries are way below those in the market. I would therefore increase these salaries such that they will be at least all at par with other salaries in the market. Secondly I would also include participation of bonus for the low risk plan. This is even if it is as low as 5%.this is because most people are attracted by bonuses no matter how little it is. Lastly, I would revise the number of times one can switch from one plan to another. I would make it possible for the associates to be able to move from a plan to another once every year. This is because two years is a very long period and the associates might get tired of the wait and decide to move to another organization.

References

Heneman, H. G., Judge, T. A., & Kammeyer-Mueller, J. D. (2012). Staffing organizations (7th ed.). Middleton, WI: Mendota House.