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Running head: COMPENSATION & BENEFITS STRATEGY 1

Techtron’s Compensation & Benefits Strategy

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COMPENSATION & BENEFITS STRATEGY 2

Introduction

Benefits and compensation plans of action are important for Techtron to attract the right

kinds of employees and retain them. At Techtron, we have plans in place to pay employees

generally between $35,000 on the low end to $60,000 annually on the midrange end. These

benefits include the increase of salaries for the production and direct supervisory, technical, and

engineering employees at the new facility in Charlotte, North Carolina. The compensation and

benefits are subject to change based on new legislations for things like minimum wage and

working conditions (Bryant et al. 2013). Techtron Human Resource must remain aware of the

changing laws to keep current and legal in the workplace. Employs are more likely to stay with a

company that is willing to address pay increases and enhancing the work environment. This

recommendation involves Techtron Incorporated and it explains the differences in salaries and

wages of the different employees. Techtron faces issues of equal pay for positions amongst the

employees and a balance of benefits. The new compensation and benefits strategy is critical in

improving the overall productivity of the organization. Techtron usually benchmarks their

programs against those of their competitors in other countries where they have the branches.

These programs are usually evaluated and updated to ensure that to make sure that their

programs are aimed to produce good results in the market. The programs are tailored to create a

sustainable long-term growth (Bryant et al. 2013). The rewards may include; base salary, annual

incentives, the long-term incentives, and benefits. The total benefits are designed the workers

needs. Techtron usually assesses their benefits programs as the dynamic market keeps on

changing to ensure that the employees get their benefits.

Techtron’s compensation and benefits initiatives are based on the availability of people

with the same skills in the job market and the amount of money that a given organization can pay

COMPENSATION & BENEFITS STRATEGY 3

its employees. Compensation may involve some rewards such as overtime pay, giving the

employees some recognitions rewards, sales commissions, and bonuses. This paper discusses the

compensation strategy that is used by Techtron Company. The trade unions usually influence the

compensation strategy of Techtron Company which is influenced by both internal and external

factors (Kaplan, 2007). Techtron is one of the companies that have been able to effectively adapt

to the changes in the financial market and has a strong financial capacity in the market. The total

rewards of Techtron Company are more than just the benefits and the rewards. It is about the

total value that employees get when they are still working at this company. It includes some

programs that are aimed at a complete package of pay. This package comprises the provision of

learning and works environment. The company usually offers some benefits which come

together with the compensation programs and various opportunities that the company offers to its

employees. Techtron offers some rewards that usually differentiate them in the market.

Compensation Bandwidths

It is crucial for Techtron Human Resource to be able to offer a performance incentive

package and merit compensation raise for the employees of Techtron. When having such an

incentive reward and having annual merit compensation shows to engage employees and make

them feel valued. The performance incentive program is going to be evaluated from a few

different areas within the company for the production and direct supervisory, technical, and

engineering employees at the new facility (Becker et al.2001). One would be how well the

employee’s job performance has been. The incentive would include that after a performance

metric standard is made and how well the employee is meeting in each area (Larkin et al. 2012).

Second would be the voice of the customer through a survey of how well their experience has

been with Techtron and how they felt after their experience. Thirdly, would be attendance and

COMPENSATION & BENEFITS STRATEGY 4

tardiness and currently, corrective actions qualify for bonuses. If an employee in the production

and direct supervisory, technical, and engineering departments is meeting all categories, they

have the opportunity to earn an extra $300.00. If meeting one area, $100.00 or if meeting in two

areas qualifies up to $200.00. There is also an implementation of an employee of the month who

goes above and beyond can be recognized and receive additional incentives.

Merit compensation increases are going to be looked based on performance reviews.

There will be categories that employees will score on such as availability, overall performance,

customer satisfaction, attendance, and goals (Becker et al.2001). Merit compensation increases

will be on the current review of current competitors and can range from 0% up to 5% depending

on how well the employee has performed over the past year. Merit compensation is subject to

change based on first years review.

The compensation and benefits strategy should be based on motivating existing

employees and attracting new quality employees as the business expands in Charlotte, North

Carolina. The type of compensation and benefits provided should be established according to the

amount of budget allocated. For example, if the business allocates $200,000 to compensation and

benefits, 85% should go toward salary and the remaining 15% will be for benefits. The

compensation given ought to be founded on understanding, training, work obligations and

current remuneration drift in the market. Keeping in mind the end goal to be focused, the

organization should offer medical coverage, dental protection, life and handicap and

performance incentives. Execution motivations will support the employee’s work harder to

achieve objectives. Yearly execution surveys ought to be directed to perceive and compensate

employees. A retirement sparing arrangement, for example, 401K ought to be offered after the

two years of work. Tenured workers ought to be given an extra reward like annual leave. This

COMPENSATION & BENEFITS STRATEGY 5

will demonstrate employees that their un-waveringness to the organization is vital and

acknowledged.

The status quo of any company is usually maintained by a compensation plan. As

discussed above it is quite clear a compensation strategy is a basic requirement for every

organization as demonstrated by the Techtron? The main aim of a compensation strategy is to

motivate the employees and enable them to access monetary assistance after their retirement.

However, the workers are usually compensated at different points. A compensation strategy

should be part of the traditions of various companies which will help them to thrive in the

market. The beverage company has developed a very good compensation strategy that caters for