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Clerk

In: Business and Management

Submitted By Frank1
Words 2262
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Table of Contents
Executive Summary………………………………………………………………………………………………………………….3
Introduction…………………………………………………………………………………………………………………………….5
Research Findings…………………………………………………………………………………………………………………….6
Bonuses…………………………………………………………………………………………………………………...................7
Sales Commissions……………………………………………………………………………………………………………………8
Medical Benefits………………………………………………………………………………………………………………………11
Retirement Benefits………………………………………………………………………………………………………………..12
Stock Options………..………………………………………………………………………………………………………………...13
Recommendations……………………………………………………………………………………………………………………14
Conclusion………………………………………………………………………………………………………………………………..15
Reference…………….……………………………………………………………………………………………………………………16

Executive Summary
Employee Compensation Strategies
There are many ways a company can compensate an employee for their contribution to the organization.
Companies offer a wide range of bonus/commissions to employees so that they can share in the company’s success. They come as cash and non-cash awards. Many corporations use profit sharing as a way to motivate an employee to work harder so they sell more. Bonus/commissions range from 2.5% - 7.5% if the corporation earns a profit. Spot bonus awards can be for providing exceptional customer service. They can be a gift card to a movie discount retailer, or cash. Recognitions are announcements in front of other employees. Sales commissions awards from the sales department when the employee sells over a certain amount of product. The percentage goes up the more they sell.
Do we pay Employees to Exist or to Produce?
Retaining good, productive employees is critical for a corporation. Rewarding employees and having fair pay helps keep “good” employees more willing to work harder and be more productive in all they do so that the company can earn a profit and retain their customers.
Having successful teams with the right leadership skills is important, and it takes hard work to comply with standards and performance in a constantly changing environment. Team building is a science and an art that needs “good” leadership that can continually perform above and beyond the call of duty Virtual teams may be considered
Such teams work in a non-formal environment such as at individuals homes and communicate with each other using a home computer. Virtual Team Successes and Failures have many advantages in organizations. They include marketing times that are much faster with the help of technology and have more global communications or other features that are more accessible when you can’t meet face-to-face with the help of email, video conferencing , or other virtual means.
Medical Benefits
Medical benefits to individual and family plans for a percentage of gross pay.
Retirement Benefits A 401(k) is a new way employees are investing for their future retirement. Part of their salary is directed into various investment plans. Employers contribute a portion toe their employee by a company match which is a percent of their own 401k contribution. Many investments include Annuities, No Load Funds, and Mutual Funds.

Stock Option Plans are usually reserved for management level. Employees are compensated for a pre-determined amount of shares in a company at a specific price after they have been with the company for a certain amount of time; normally four to five years of employment. Stock option plans are a reward for their performance and can help increase productivity.

Introduction
This report addresses types of compensation, rewards and encouragement to employees beyond basic salary. Since the first business started, employees have been offered some type of compensation. Initially, this consisted essentially of just salary of some fixed basis. As time went on, employers have offered more to employees than just a living wage. These include bonuses; and sales commissions, to individual recognition awards and retirement funding contributions; particularly 401k. Then, with bigger business’s emerging, employees have been offered employee stock option plans.
A home computer based innovation of recent years has proven cost effective in the use of the virtual team. Virtual teams can communicate by internet, phone, and video conferencing at home or other locations. This means of communication is becoming very popular in the workforce today. They are independent individuals working on their projects across space and time and they rely heavily on information and communication technology.

Features virtual teams share are:
1. Two or more individuals work semi-independently across boundaries, but physically separated.
2. The use of information technologies conquer communication practices
3. They share accountability in team success
4. They come together for a finite amount of time (Wells, 2006)
These types of teams provide advantages to the corporation that requires research. One advantage that a virtual team my possess in able to achieve faster marketing times working thought out the day and night. Also they can have multiple locations which can lower costs when working at home.

Overall, employee benefits have gotten larger and more varied, particularly in recent centuries. Employers want more production from employees, greater sales, and higher profits. Larger and more innovative forms of employee compensation have evolved in this effort. Technical Advancements in Virtual Team Success will continue to advance. Technology changes every day.

Bonuses:
1. All employees, Cash Bonus.
To bring wages in alignment with other companies.
2. Individual Cash Bonus (spot Bonus) for extraordinary individual contribution or achievement
Analysis.

There are many ways a company can implement types of Bonuses so that an employee can share in the corporation’s profits. They come with cash and non-cash awards.
Profit Sharing is a way a company may set aside a percentage amount in payroll. They range from 2.5% to 7.5% these bonuses depend totally on profits the company earns. It motivates the employee to work harder to get that added bonus.

A Spot Bonus award can be for doing something extraordinary like providing exceptional customer service to someone or going out of their way for an employee. These awards can be a $20.00 gift card to a movie, discount retailer, or for cash.
Noncash bonuses can be an award announced in front of other employees.

Are Employees to exist or to produce?
Paying Employees a living wage to help retain productive employees in most cases is more productive. Employers who have good yearly profit like to recognize good employees and reward them with an incentive check at the end of the year. There are times when employees don’t feel their incentive was adequate enough when they perform better than their counter part.
Some years employers are not able to give incentive checks when the economy isn’t as good as in other years. In this articles example the employer made a mistake by not putting in writing that the incentive program could change or even be canceled with written notice.

Sales Commissions:
1. Quantity of Sales
2. Size of Individual Sales
3. Stock Option Plans
Successful Teams that are built to Last
Leadership is a great skill and takes a lot of hard work to comply with standards and performance in a constantly changing environment. Team building is a science and an art that needs great leadership that can constantly perform above and beyond the call of duty. In most cases managers don’t frequently become good leaders. To be a good leader you need certain skills:
1. Style of your work-how you think, have a positive approach in dealing with people.
2. Have a desire to know who you are working with each day-find strengths, weaknesses, and education. Understand what they can bring to the organization and don’t be afraid to dig into the trenches yourself.
3. Set definite Roles & Responsibilities-Know what is expected from each team member.
4. Have a positive feedback by making it a learning opportunity.
5. Recognize great work-let them know when they do something out of the ordinary.
6. Applaud Achievement-Employees need to know when their work is appreciated.
Virtual Team Successes and Failures:
Several advantages and disadvantages in organizations with virtual teams include marketing times that are much faster with the help of technology. There is more global communication or other that are more accessible when you can’t meet face-to-face with the help of email, technology, or other virtual means.
Don’t blame the economy: Motivating your sales team to improve sales:
Industry is constantly changing and the outdated marketing methods are evolving to newer ways of getting customers. Lower sales can last months, and it may be caused by old fashioned marketing methods or new modern methods of technology required to increase corporate sales.
Knowing what current clients need to evaluate for attracting new more lucrative customers. Costs of maintaining and obtaining new customers can cost lots of money. A firm must have a motivated and developed sales staff with members open to change, training, and constant improvement. This takes extra motivation, by offering a fair commission for certain amounts of sales.
Virtual teams can communicate by internet, phone, and video conferencing at home or other locations. This means of communication is becoming very popular in the workforce today. They are independent individuals working on their projects across space and time and they rely heavily on information and communication technology. Few features virtual teams share are:
1. Two or more individuals work semi-independently across boundaries, but physically separated.
2. The use of information technologies conquer communication practices
3. They share accountability in team success
4. They come together for a finite amount of time (Wells, 2006)
These types of teams have advantages and disadvantages to the corporation that require research. One advantage that a virtual team my possess in able to achieve faster marketing times working thought out the day and night. Also they can have multiple locations which can lower costs when working at home. Disadvantages include social degrees of operating in multiple locations, with roles that are uncertain and difficult to interpret by technology.
Improved performance:

Stock Options
1. Normally used for Management only.
2. Employee

Employee Stock Option Plans (ESOP’S)
Employers allow employees to purchase a pre-dertmined amount of shares in a company at specific prices after they have been with the company for some request amount of time, normally 4-5 years of employment. Such plans are frequently reserved for Management level employees and beyond. These stock option plans are a reward for their performance and a motivator to help increase productivity.
There are few benefits to ESOP’s; they come with a lock-in period known as a vesting period, which allows the employee to exercise options. It gives the employee a sense of ownership in the company. It frees up cash reserves for the company. It helps with tax obligations in the company, by reducing the capital gains tax to zero in some cases. These ESOP’s enable the company to pass on their legacy on to the employees who helped their success.
It helps motivate employees to be more involved in the company’s day-to-day operation, since they are new part owners in the corporation.
Employee stock options represent a benefit. They are complex and present superior options and future allowances with benefits for employee incentives.

Medical Benefits
1. Individual
2. Family
A Percentage of each worker will be charged a percentage based on an individual or family plan. The premiums for an individual are 10% of their pay while a family plan will cost the employee 18% of their gross pay.

Retirement Benefits

1. Pensions
2. 401 k Plans

Pension plan is a type of retirement plan where a employer makes a certain percentage towards a pool of funds for an employee’s future retirement benefit. They get invested on the employee allowing the employee a certain amount of money based on years of service with that company.

A defined-benefit plan the employer guarantees that they will receive a definite amount at retirement regardless of the performance of the investment pool.

A defined-contribution plan makes predefined contributions for the employee; the final amount of benefit will depend on the investments performance.

The 401(k) is a new way employees are investing for their future retirement. Part of their salary is directed into various investment plans. Employers contribute a portion to their employee by a company match which is a percent of their own 401k contribution. There are risks involved in investing and the employee must be knowledgeable to put their money in a fairly safe investment.
Investments may include individual stocks or mutual funds. Mutual Funds are groupings of individual stocks managed by a fund manager who is paid via a front end load or back end load. Such loads are sales commissions that pay the fund manager for his efforts.
Annuities are another form that usually has an insurance-related charge and early surrender transfer charge. It’s best to study each stock that is considered so that you get the most of your money for your retirement.
Employers offer a wide range of investment types from Annuities, No Load Funds, to Load Funds, and Mutual Funds. You can request documents from each plan to make your final decision on ratings, and cost.

Recommendations
1. Institute a Bonus Plan:
2. Develop a Sales Commission Plan:
3. Institute a Pension Plan:
4. Establish a 401k Plan:

Conclusion
Various forms of rewards and recognitions to employees of our company have been researched, and analyzed, and presented in this report. The conclusions reached include establishing a management defined bonus program based on productivity and sales results. Analogues to this a sales commission program which rewards extra ordinary sales achievement is recommended. A medical benefits plan should be instituted which is competitive to those of companies of similar size.
A separate pension plan is not recommended as these are being phased out in recent years and do not have the individual ownership and portability of a 401k plan. In lieu of said pension is recommended that a 401k plan with a 50% match to employee contribution be established. A stock option plan for employee levels of Managers, director, and Vice President may be considered in the future.…...

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