Free Essay with Questions on Employee Motivation through Compensation and Benefits

Published: 2022-09-23
Free Essay with Questions on Employee Motivation through Compensation and Benefits
Type of paper:  Essay
Categories:  Management Human resources
Pages: 4
Wordcount: 869 words
8 min read

RW #1

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John Paul Mitchell Systems Company.

John Paul Mitchell Systems Company has great benefits when it comes to employees who work for them like me who is a hair stylist. Firstly, Paul Mitchell Systems Company provides a great experience for the employees because it shares explicit knowledge about beauty and hair care products to its employees than any other company in the world. Furthermore, there is a good work-life balance with the company as the people are very friendly. Also, Managers are responsive to the needs of the employees which results in a productive and fun workplace to be for any employee. Lastly, it provides a great opportunity for the employees to work on a great beauty field in front of a large audience of people hence providing great exposure to the employees.

The company has a great compensation plan for its employees that attracts any employee to want to work for them. The compensation plan benefits that motivates an employee to want to work and stay with them are a comprehensive list of benefits to is employees such as the best health insurance, vacation for the employees, financial and retirement plan and the Professional support such as job training and professional development. Maslow hierarchy of needs is a theory that describes the stages of growth in people and these factors provided by the company would fit at safety needs stage of the Maslow (Poston, 2009, p347-353). In the Herzberg's two-factor theory which is concerned with people's motivation and job satisfaction, the benefits provided by the company would fit at the job satisfaction Alshmemri, Shahwan-Akl, & Maude, 2017, p12-16).

RW #2

Average employee turnover cost and report findings from at least three different industries or companies and it was based on the industry for 2015.

Banking and Finance 14.2%

Hospitality 17.8%

Insurance 8.8%

Manufacturing and Distribution 9.1%

RW #3

The pros and cons for the employer when offering the stock option as a component of compensation?


It attracts and keeps the talented employees to the company

It creates more dedicated employees in the company as employers seek to motivate the employees and generate their loyalty.

It is cost effective for the company benefit as it helps the company to expand their programs (Singh, 2011).


Stock options are very difficult for the employer to value.

The company risks the default of the employees.

Pros and cons for offering employee stock options as a component of compensation.


It offers an employee an opportunity to have the ownership of the company they are working for, and hence they feel connected to the business.

Employees can be able to benefit from some of the financial rewards that are brought up by the business that increases dedication for all the employees.

It is a sound investment for an individual with a long-term financial strategy as the company allows the employees to invest without the payment of broker's fee.

It offers some tax benefits to the employees.


The dilution can be very expensive or costly to the shareholder over a long period of time.

The employee mainly relies on the collective output of their co-workers and the management as a whole for him or her to receive a bonus.

The tax implications that come with stock option are very complicated.

RW #4

SEC's CEO pay-ratio rule requires the companies' CEO to disclose their pay through a ration of the median compensation which is very important according to me. The intentions of the rule are very vital because, in 2014, the pay for the CEO was 373 times to that of a CEO. The imbalances in the pay ratio contributed greatly to the ever-growing wealth gap in the United States that was greatly accompanied by social and political inequalities (Adhyatmika, 2011). The implementation of the rule is very important because it will help bring about economic fairness in the United States.

RW #5

State laws from CA.

In 2017, employers in California are aware of the state legislature that had undergone changes for the workplace. The new employment laws that had undergone changes in California were effective on Jan. 1, 2018 which included hiring practices, Wage and Hour Policies, Sexual Harassment Training, Parental Leave Entitlement, and attendance policies.

The onboarding process in California state changed whereby in there is a ban on pay history inquiries by the employers as from 2018. Employers are no longer required to ask job applicants about their current or prior salaries under A.B. 168 law. Therefore the employers are required to provide a pay scale for the position that an applicant requests.

Delay the Conversation about the salary up to the end of the interview. Do it by demonstrating your professional value first before you have a conversation about salary. Show your interviewer your accomplishments first by explaining them to him or her. This important it will put into consideration benefits and other forms of compensation.


Adhyatmika, Kynam, Tantia (2011) on Driving Employee Motivation through Compensation and Benefits. Retrieved from

Alshmemri, M., Shahwan-Akl, L., & Maude, P. (2017). Herzberg's two-factor theory. Life Science Journal, 14(5), 12-16.

Poston, B. (2009). Maslow's hierarchy of needs. The Surgical Technologist, 41(8), 347-353.

Singh (2011) Managing Employee Compensation and Benefits. Retrieved from (Short Webcast)

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