|Type of paper:
|Human resources Motivation Strategic management Organizational culture
Most employers are faced with the problem of attracting and retaining a quality workforce. Endothon company shows a similar challenge that involves losing workers to competitors and the inability to find and retain a qualified workforce. For Endothon and other organizations aiming at restructuring are finding it hard to keep up with employee needs. In many cases, companies with huge incentives and performance pay systems have ended up failing. (Khan, 2000). Therefore, to sustain the level of motivation among the employees, Endothon company should demonstrate a close link between reward, compensation, and performance to retain the workforce.
Endothon company should ensure that it accelerates or grow organically, through innovation, partnership, sector marketing, and distribution. The company's human resource management reflects a strategic or centralized human capital function that operates within a dynamic and complex environment. Therefore there is a range of external and internal challenges that intersect with this organization regarding hiring, attracting, and retain a quality workforce.
The strategy will aim at helping the company to implement retention strategies to make employees feel engaged and valued. Most employees leave an organization as a result of complexity and low salaries; therefore, the company must create an employee retention plan. An effective organization strategy will be successful as a result of :
Step 1. Analyzing the organization retention situation
This situation analysis involves an assessment of the current situation, and this may be achieved by calculating the turnover and retention rate using historical data of about five years. Taking employee retention inventory, which will be achieved through evaluating the state of communication, motivation, and engagement, the employee needs to balance their work and personal life, interaction among various levels of management, compensation situation, and company cultures.
Step 2. Choosing effective strategies and solutions
Choosing an effective strategy or solutions will involve addressing what the organization is getting right or what it is required to work on. The strategies should measure employee engagement, work-life balance, recruitment revitalization, compensation and salary, communication and leadership, organization culture, financial wellness, and employee recognition
Step 3. Creating a retention plan of action
There is a need to begin by breaking down the strategy into achievable goals. Example:
Endothon company employee retention goal: Satisfying the employee in creating happiness pamphlet
Timeline: Start from 20th March 2020- 20th March 2021Required resource: $ 150000 Desired outcome: Education and awareness of employees engagement and increase transparency and trust between employees, senior level of management and human resource
Step 4. Putting together retention plan documents
Putting together a retention plan document involves improving the retention plan strategies, analysis, and plans that are laid in a detailed planned document.
Step 5. Involves presenting and owning the retention plan
This step involves research, continuous improvement of the plan, and celebrating success. It is, therefore, necessary to anticipate any skepticism and thus plan to win over them.
Company's Compensation Strategy
Successful alignment of compensation and organization strategy will help in focusing on decisions, changing behaviors, and helping human resources fulfill its responsibility as a strategic business partner. (Davis & Edge, 2004).The organization's compensation seeks to achieve recruitment and retention of talents, effectively deliver compensation, reinforce the culture of the organization, and focus on metrics of key performance. Attracting and retaining an effective workforce requires the company to clarify its expectations, where employees are required to know their obligations, goals, and expectations to create an atmosphere of satisfaction and success. Secondly; It is important to hire an experienced employee. The organization may equip employees to recognize, value, and appreciate their team members. Lastly, Endothon Company should be able to offer growth opportunities where employees may learn new skills and advance in their careers. The compensation strategy will, thus evaluate:
1. Internal Context
Endothon Company organization strategy will adopt a portfolio approach to making an effective decision by evaluating all of the company's businesses in determining the effective value. To develop a corporate strategy, the company will evaluate the compensation strategies and performance of all its branches across the world on whether they fit, how they affect each other, and the structure of parent company, this will help in optimizing the human capital.
2. External Human Capital Context
The value of formal education, on the job training, and technical schooling has increased in society. For Endothon to gain effective productivity, they require a workforce with the necessary knowledge and skills. The organization will gather and analyze information regarding historical performance, annual pay practice, the marketplace for talents, and evaluate investor's expectations of future performance.
3. Objectives or Goals
Endothon's compensation objectives include recruitment and retention of top tier talent, focusing on key performance, providing for alignment among shareholders and management, and lastly, providing for a line of sight to the key objectives. The company must effectively deliver compensation through the cash or dilution method. It is also necessary that the company remains understandable and simple and reinforce organizational culture.
4. Compensation Strategy.
Endothon company must define parameters of the compensation strategy where it ought to evaluate pay position, participation, and pay risk profile.
5. Developing and Implementing Pay Programs
This is the execution stage where the company will develop necessary programs that will help in the execution of compensation strategy. The human resource will design annual incentives, salary administration programs, and long term incentives. The company may use risk profile strategy through pay performance or pay components mix mechanism to help in the execution of pay strategy components.
Pay Grades and Ranges Table
|Current pay ( Annually)
|Human resource manager
|Head software designer
|6 Software designers
|4 Operation supervisors
|2 Sales representatives
|3 IT technicians
|2 Customer service
Justification of the Brand Managers and Sales Representative Salaries
The brand manager helps in developing a company's brand strategy, where they oversee a wide range of business functions as compared to human resources. Thus their salary range is placed above the human resource. Human resources oversee only the internal business functions while brand managers are in charge of internal and external functions that include: product development, branding, communication channels, market research, and offline and online promotions. The brand managers should have at least a bachelor's degree and require one to have excellent communication and strong leadership in managing the branding team.
The sales representatives' salaries range was placed under the operations supervisor. The sales representatives, in this case, are paid slightly above the normal salary of sales representatives compared to other companies' and industry norms. The company will employ two sales representatives who would have the same salary range because their roles and start times are similar, and this would also help maintain equality within the company.
The External Business Environment
The external business environment includes all forces and institutions outside the organizations that have a potential impact on the ability of the organization to attain its objectives. (Ghuman, 2010). Endothon Company competes in a highly competitive sector and is located within a geographic area where the Information technology job market is said to be competitive. Therefore the company wishes to advance its services through implementing a new software. Endothon market position and place reveal that the company has to be able to carve a niche in the IT market in California.
Most job seekers are comparing pay equity and the rate of the salary of potential employers before applying for jobs. Therefore, for Endothon Company to improve its employer brand among the candidate and employees, they can embrace the transparency trend. They may also need to consider the target market rate for some jobs faced with challenges of finding the right personnel, and this will help to improve pay equity and the rate of time to fill.
Davis, M., & Edge, J. (2004). Executive Compensation: The Professional's Guide to Current
Issues and Practices. Windsor Professional Information.
Ghuman, K. (2010). Management: Concepts, Practice & Cases. Tata Mc Graw hill Publishers.
Khan, S. (2000). Reward And Compensation Strategy: Issues And Challenges. Institute for
Integrated Learning in Management. Retrieved 20 February 2020, from https://www.researchgate.net/publication/312167547_reward_and_compensation_strategy_issues_and_challenges.
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