Offering benefits such as healthcare and even stock options to lower-level employees, a compensation strategy also pursued by Starbucks (a company both literally and figuratively 'green' in its image), is another example of a policy that can benefit both the company and employees -- employees enjoy greater security, while the companies reduce the high rate of workplace turnover that is endemic to the service industry at companies like McDonald's. In fact, as Eric Schlosser observed in Fast Food Nation, fast food companies have often deliberately made life unpleasant for lower-level employees, to reduce the need to offer them promotions, benefits, and higher pay, on the theory that it is easy to train a new worker to operate a cash register. "How can workers look to this industry as a career…when it pays them the minimum wage and provides them no health benefits" (Schlosser 2001, p. 88). Whole Foods and Starbucks have adopted a different philosophy than other service-related establishments such as McDonald's and Wendy's and try to keep costs of training new employees low, and workplace turnover at a minimum. The service is superior as a result, these corporations believe, and employees are more likely to be conscientious and put on a good 'face' to customers if they feel their benefits packages are better than those they could obtain from Shop Rite or Dunkin' Donuts. However, no company has taken social engineering through benefits packages to the level of Google. And, it seems to be working -- Google employees are fitter, with gyms and fitness classes at their finger tips, Googlers keep building their base of knowledge with continuing education classes, and they give back to the company by working long hours in exchange for exciting work, a lack of hierarchy (lower-level employees eat side-by-side management at the free cafeteria), and even the right to pursue their own research and projects on the company's dime. Employees even feel they are saving...
Facebook, another IT upstart that has become ubiquitous in the lives of teens and young adults, is taking a similar approach: The LA Times reported "Facebook's headquarters is smack in the middle of one of the priciest real estate markets in the world, out of reach to many of the company's less-well-paid staffers such as customer service reps and even to many of its more handsomely compensated engineers…. [But] Facebook employees [do not] lack for perks. The latest: Free food. The Facebook cafeteria, run by…a former Google executive chef, is already a real crowd pleaser. Following the Google model, it serves up ... gourmet grub such as fettuccine, fish, baby beets and celery root puree alongside a daily selection of pizzas. There is even a magical machine that swirls delicious homemade frozen yogurt" (Guynn 2008).
There are also an increasing number of opportunities for people from diverse backgrounds to work together towards a common company goal. This brings with it a unique set of opportunities and challenges (Kosch, 2007). Kosch (2007, p.1) for example mentions the benefits of an international camping program in the United States, where students from across the globe came to American campsites to work as advisers, cooks, housekeepers, and others. The
Compensation Management Explain the job characteristics theory. How does it tie in with intrinsic compensation? Job characteristics theory was first introduced by Hackman and Oldham. Later on the basis of this theory, a job characteristic model was proposed which is also known as JCM. The theory focuses on five job attributes which helps in motivating the employees and make them feel satisfied at their job. The five job characteristics are as follows: Task
This plan will help a company to cope with the challenges of having a high rate of employee turnover since the employees with get satisfaction in their work places from the bonus of their hard work. All in all, reward and appraisal are important tools used to ensure that employees are motivated and dedicated to their work hence retaining them and improving of the company's productivity. Therefore, every company should
Compensation and Benefits The United States Postal Service (USPS) which has been experiencing periods of stagnant or declining revenue was discovered to have a large issue with their compensation and benefits system. It was discovered that the organization provides its employees with lucrative packages which are much higher than those offered by its private sector competitors. Most of the USPS employees are unionized and the unions have been able to negotiate
Compensation Practice Ford Motor Company Henry Ford established the Ford Motor company in the year 1903. This was done with the help of eleven other business associates at a time when there were eighty seven other motor companies in the U.S. Before Henry Ford got into the motor business, cars were very expensive and were considered as luxury possessions and that only the wealthy minority could afford them. What set Ford apart
Compensation in Wachovia Bank's Base Employee Tier Bank Teller Pay Compensation in Wachovia Bank's Base Employee Tier Banking Industry Practices Retention Rates for Tellers Opportunity Cost for Promotion Enabling Cross-Selling Consideration of Drawbacks Compensation of tellers at Wachovia Bank is closely tied to turnover rates. Employee turnover is costly because resources must be expended to replace employees who leave. Recruitment and training can be expected to be approximately one-third of an employee's salary. In the banking industry, the
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