MHR 6901Compensation ProgramsColumbia Southern University MH, Lecture notes of Accounting

Download MHR 6901Compensation ProgramsColumbia Southern University MH and more Lecture notes Accounting in PDF only on Docsity! MHR 6901 Compensation Programs Columbia Southern University MHR 6901-Compesation Management Unit 1: Essay Compensation Programs Introduction The company I decided to go with is an insurance agency. Welcome to Simmons Insurance Agency, with the best premiums you can find. Simmons Insurance Agency was founded in 2007 in New Orleans, LA. Today we have 3 offices that can assist you with you insurance coverage needs. We supply insurance coverage and policies for automobile, homes, rentals and commercial property. When considering employment at Simmons Insurance Agency, decisions are influenced by our base salary, commission, paid time off and our benefits package. In this essay, we will discuss and overview of how compensation programs are developed, and how the compensation plan can influence candidates/applicants of a company. Also how the compensation plan can play a major roll in the success of an organization. It will also discuss how various laws can impact one’s compensation plan. Influences on Decisions to Apply for a job When one is applying for a position with a company, and ultimately accepting the offer, one faces several factors to consider in making their decision. There are multiple reasons that can influences someone to apply or to accept a job. Some of those reasons/influences can be; compensation, time off/vacation/holiday pay, benefits, company stability, bonuses, commission, as well as career advancement. Compensation represents both the intrinsic and extrinsic rewards employees receive for performing their jobs and for their membership as employees (Matrocchio, 2020). Managing a business requires the organization to have dedicated employees. Compensation and Organization Success Compensation Plans play a major roll in the success of any organization. Compensation plans can influence the success of the company or it can be detrimental to the company. Having a good compensation plan allows for highly qualified individuals to apply and even accept offers. This also allows for these highly qualified individuals to remain with the company long term, which in turn, leads to the company’s success. Employees want to work in a positive environment that is free from discrimination and offers equal pay and opportunities. As Simmons Insurance group we offer it all. Outside influences Influences outside one’s organization can affect the compensation plan a company can offer. Outside influences can consist of; compensation packages, benefits packages, commission rates, and location. There are building blocks embedded within the system of three structural elements. These structural elements support compensation strategies. These structural elements include internally consistent job structures, market competitive pay structures and structures that recognize employee contributions (Martocchio, 2020). At Simmons Insurance Agency we do not hire any PT TM’s as we are a small business. We hire full time salaried employees that work off commission for additional income to their base salary. Legislation Laws can play a huge impact on the practices related to compiling a compensation plan. There are some provisions that can impact employment and compensation structures for any organization. Some provisions we will discuss are the Civils Rights Act of 1964, The Bennett Amendment, and the Executive Order 11246. We will discuss why these were implement and how they can affect Simmons Insurance Agency.