The Compensation and Benefits System of Holland Enterprises Research Paper

The Compensation and Benefits System of Holland Enterprises - Research Paper ExampleCompensation and benefits system do not only include the rewards and benefits given by the cheek in monetary terms but non-monetary rewards alike(p) health insurance, vacation, sick leave etc be also included in it. Increasing the earnings and benefits could outgrowth the motivation of employees but from the perspective of organization it could increase the cost and thus reduce the profitability, therefore, human alternative department should come up with a system that ensures a healthy and constructive environment is construct and maintained and at the same time profitability of the organization is not hurt. Compensation and benefits offered by the organizations should be evaluated and employees that give more efforts should be rewarded accordingly. There are more than 3,500 employees employed at Holland Enterprises. ...is an grave face as better compensation helps in improving the productiv ity of the employees and as the productivity of the organization improves, it ordain help the companion in generating more sales or increasing its revenues. There are 2 important aspects that the organization has to look while giving high compensation and benefits to employees the first one is that higher compensation helps in improving the sales of the company, however, the second aspect of increasing the compensation is that it increases the cost of the company and therefore it might not lead to improving the profitability (Spector, 2006). Human resource is the most important resource of any organization regardless of what kind of products or services the company offers, therefore, it is important to encounter the needs of human resource and to provide them effective compensation and benefits so that they remain motivated as well as productive (Hurtz, & Donovan, 2000). It is important to provide employees market competitive salary so that they are able to retain employees. Ho lland Enterprises has lost a large number of employees since 2007 because of their compensation and benefits system as the compensation offered by the company is unfair and the company does not reward the employees accordingly, therefore, several employees have resigned from Holland Enterprises. principle components of a typical compensation and benefits system There is no perfect compensation and benefits system that every organization can adapt. Compensation and benefits system has to change according to the specific situation and specific organizational culture.