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Employee Compensation and Benefits

EmployeeCompensation and Benefits

EmployeeCompensation and Benefits

Employeecompensation entails the paying and rewarding individuals for theircontributions towards the organization. Compensation includes mainlythe paycheck the employer gives to the employees, but also includesother non pay aspects that are provided. Apart from the salary,compensation include benefits such as health insurance, retirementbenefits, paid leaves, and even the employees’ psychologicalcontent that comes from working in a good environment (Stewart &ampBrown, 2012 p412). The type of an organization I chose is corporate.I will design the compensation and benefit plan for a secretary in atelecommunication organization.


Thetype of organization chosen is corporate, in telecommunicationindustry. A compensation and benefit plan will be designed for asecretary. Telecom firms are highly profitable and dynamic in termsof growth. Customer service is at the center of telecom companies.

Compensationand Benefit

Asecretary in a telecom company plays a critical role and thereforedeserves a handsome package. Basic annual salary of $US 33,000 willbe awarded. This is slightly lower than some legal and othersecretaries in public firms. In addition and unlike in mostorganizations, the secretary will receive several benefits.



MedicalInsurance is meant to cover the cost of physician and surgeon,prescription drugs and hospital rooms. It will include dental andoptical care. This cover should also include the secretary’sdependants such as children and spouse.

Thecompany should part of the premiums for the insurance, requiring theemployee to pay just a small portion.


Thisinsurance is meant to cater for all or portion of the income that anemployee loses when he or she is not capable of performing his jobdue to an injury or illness. This will include

Short-termdisability insurance. This type of insurance starts right away orwithin a short while of an illness, accident or any form ofdisability. for example, if involved in a car accident one will bepaid until they recover to go to work (Rothwell &amp Kazanas, 2003p243).

Longterm disability insurance: this insurance offers benefits to theworker when he or she suffers permanent or long term injury, illnessor disability that makes one unable to perform his or her work. Forexample if an employee suffers spinal injury, he will be entitled tobenefits throughout his or her lifetime.


Thisis funds set aside to offer a person with a pension or form of incomewhen they terminate their careers. The type of retirement benefit tobe offered is the defined benefit plan. In this plan, the pension orthe benefit is predetermined and depends on the salary and the lengthof service. Here the employee does not have to worry on the risk ofinvestment.

PaidTime Off

PTOis earned by an employee while they are working. The PTO that will beincluded for the new secretary will include sick leave, holidays andvacation leave. This will be given as separate benefits.

Trainingand Development

Apartfrom the above benefits, the secretary will be entitled to trainingand education, to advance his or her career and be able to live arewarding personal life. This will include fully paid for training inthe relevant line of the employee (U.S Department of State, N.D).

  • Amenities and Services

  • The employee will also be entitled to various services and amenities including:

  • Library

  • Bus/Shuttle services

  • Communication Services

Thiscompensation and benefit plan was offered to be way above the stateand other industry standards. This will help the organization toattract experienced individuals who will add value to the company.The plan will help reduce turnover (Stewart &amp Brown, 2012 p413).

Thesecretary will be an exempt employee. As stipulated under the FairLabor Standards Act (FLSA) an exempt employee is not entitled toovertime pay (Stewart &amp Brown, 2012 p439).

JobBased Pay

Theplan used to pay the secretary is job based pay. Under this plan, thesecretary will be paid on the kind of job performed and not on skilllevel.

AligningCompensation with HR Strategy

Jobbased pay is associated with committed expert HR strategy. In thisstrategy, an employee looks forward for promotions. An employee isable to see rationality of basis of pay decisions. It is suitablewith bargain laborer HR strategy, employee skills are not important.

Legislationsand Influence on Compensation and Benefits

Variouslegislations will influence the development of the compensation planincluding the Equal Pay Act which requires an employer to pay allemployees on their performance regardless of their differences suchas gender. The Worker Compensation Act 1951 and Accident CompensationAct 2001 make it compulsory for employers to pay employees in casethey suffer injury at work.

Theselegislations and others in various states regulate compensation andbenefit plan. Accident Compensation Act 2001 and Worker CompensationAct 1951 will influence our benefit plan such as disabilityinsurance.


Secretariesand administrative assistants in the United States receive an averageof $37780 annual salary. Medical secretaries earn about $32670.

Rationalefor Current Package

Corporatefirms must offer competitive packages in order to compete with publicorganizations. To be more attractive than state owned firms, whichoffer slightly higher compensation than the current package, morebenefits like the ones discussed above can be useful.


Rothwell,W. &amp Kazanas, H. (2003). Planning and managing humanresources strategic planning for human resources management.Amherst, Mass: HRD Press.

Stewart,G. L., &amp Brown, K. G. (2012). Humanresource management (2nded.). Danvers, MA: John Wiley &amp Sons, Inc.

U.SDepartment of State. (no date). Benefits Overview. Retrievedhttp://careers.state.gov/work/domestic/benefits (Accessed March 12,2014).