To be effective, they will evaluate the strategic implications various compensation philosophies have on an organization. They will also analyze the various forms of employee benefits and the key components of constructing a benefits compensation plan. In addition, students will evaluate the impact the Fair Labor Standards Act (FSLA) and other laws have on the compensation practices of an organization.

Part III:  Pay-for-Performance and Employee Benefits

• Continuing with the same position discussed in Part I and II of this project, determine recommendations for individual pay within the scope of pay-for-performance.
  • (200-300 words) Discuss how you will link the hypothetical organization’s strategy to pay-for-performance and performance management. Include the following in your discussion:
    • The behaviors that are most important based on the corporate goals.
    • How you will ensure equity and fairness in the pay-for-performance plan.
    • How you will ensure compliance with existing laws.
  • (400-500 words) Outline the pay-for-performance plan for this position. Include a discussion on each of the following types of plans and whether or not they are appropriate for this position in this organization:
    • Short term pay-for-performance plans
    • Team incentive plans
    • Long-term incentive plans
  • (100-150 words) Describe how you will use performance appraisals in compensation decisions.
    • Discuss the use of performance metrics.
    • Determine the philosophy for merit guidelines.
  • Continuing with the same position discussed in Part I and II of this project, determine an employee benefits plan.
    • (200-300 words) Discuss the components to be considered in your overall benefit plan. Include the following in your discussion:
      • Employer factors such as total compensation costs, cost of benefits, competitor offerings, role of benefits, and legal requirements.
      • Employee factors such as equity/fairness and personal needs.
      • How you will manage cost containment.
    • (100-150 words) Provide a checklist that ensures you are including all legally required benefits.
    • (400-500 words) Discuss your design options and choices for a legal and balanced approach to employee benefits. Include in your discussion the four primary categories of employee benefits:
      • Retirement and savings plans
      • Life Insurance
      • Medical benefits
      • Miscellaneous benefits

Format:

Each section of the Compensation Plan Project should be prepared in APA format including a title page, section headers, in-text citations, and a reference page. A minimum of three professional and reputable sources are required for this section of the project.

Part III of this project will be 3-4 pages of body (1400-1900 words) plus title page and reference page.