Total Compensation Plan Design

Action Items

1. Design a total compensation plan for the organization you selected. The plan must include:
2. An overview of your organization, including the nature of its business, location(s), and number of employees.
3. A brief discussion of the organization’s overall business strategy and organizational culture.
4. An organizational chart representing the hierarchy or levels in the organization. Identify the benchmark positions on the chart.
5. The organization’s broad compensation strategy. List the internal and external factors affecting the strategy.
6. A detailed total compensation plan in terms of monetary and non-monetary compensation components. Include the following:
7. Base pay structure (grade/band using the benchmark jobs and point method. Provide survey sources and Point Method in an appendix).
8. Job hierarchy (attach sample benchmark job descriptions in an appendix).
9. Different job levels or employee groups and their total compensation components.
10. Variable pay (e.g., bonus, team or individual incentives) and methods used or type of plans.
11. Performance evaluation method and its use (e.g., merit pay, bonuses, incentives, employee development). If you have an example of a performance appraisal, include it in an appendix.
12. Various employee benefits for different employee groups.
13. Long term incentives and executive pay plan, if any.
14. Non-traditional reward programs (e.g. employee recognition, work-life balance efforts).
15. The cost to the organization for the implementation of the plan.
16. An overview of how you will implement and communicate the plan.
17. Write a 8- to 10-page total compensation plan including all the items from Action Item 1. Include at least 8 resources of which at least half must be academic resources. Format the paper according to the Academic Paper Guidelines.
18. Attach the grading rubric as an appendix to the plan.