Question

fhd that some changes should be made, as the majority of employees (you have 120 employees) are not happy with what is being offered. In fact, the plan had not been revised in over fifteen ers, making it dated and definitely ready for some changes. One of the major points of contention is the PTO the organization offers. Employees feel the cur- Sys often come to work sick, so I can still have my vacation time for my vacation." Another rent system of sick time and vacation time offers too few options. For example, one employee You just finished analyzing information for the current compensation and benefits program. You employee says, I have given nine years to this organization, but I receive only three days more Chapter Case PTO. Too Little or Too Much? man someone who has just started." Here is the current PTO offering: 1+ year 7 days 5+ years 10 days 10+ years 14 days 1. What cost considerations would you take into account when revising this part of your compensation plan?

Answer 1

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Answer :

Cost considerations are taken into account while revising compensation plan:

As per the question, the compensation plan needs revision so that the employees feel satisfied with what they receive. Following cost considerations need to be taken into account:

· The compensation philosophy of the organization needs to be considered and taken care of before making the changes.

· The budget that has been allocated by the organization towards giving compensation must be taken into account and then new plans must be framed.

· The profitability of the organization on a yearly basis must be calculated, on the basis of which the amount to be paid out as compensation can be decided.

· Future payout plans on dividend or other liabilities must be considered and then an increase in the compensations must be decided upon.