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GlobalX Beauty Companys Compensation and Benefits Strategies
Introduction
Determining appropriate compensation and benefits is crucial for organizations because of their impact on employee engagement, motivation, and retention. This paper will discuss compensation and benefits strategies for GlobalX Beauty Company, which has to hire an Executive Sales Director, Country Sales Managers, and Regional Sales Directors. It will assess the qualifications for these positions, describe the process for determining compensation and benefits, and discuss related legal and ethical issues.
Qualifications for the Positions
Assessing qualifications is essential for determining employee compensation because, depending on skills, employees bring a different value to the organization. Organizations determine pay levels based on principles of fairness, market forces, and the relative contribution of each job to the organizations performance (Noe et al., 2022). Hence, depending on education, experience, and level of responsibility, the pay received by new employees hired by GlobalX Beauty Company will differ.
Country Sales Managers require the least qualifications among the three identified positions. Common qualifications for this position include sales experience, willingness to travel, educational level, interpersonal and communication skills, relationship management skills, problem-solving skills, competitiveness, integrity, and the ability to work independently (Ingram et al., 2019). The same qualifications are necessary for Regional Sales Directors and the Executive Sales Director, but education and experience requirements are stricter for these positions. For example, the Executive Sales Dire can be required to have a proven track record of revenue growth. Furthermore, since GlobalX Beauty Company is seeking to expand its business abroad, it may require people with certain cultural or ethnic backgrounds to succeed in the market, even though this tactic can be considered discriminatory in the US (Ingram et al., 2019). The difference in qualifications for these positions will influence compensation and benefits, leading to the highest compensation for the Executive Sales Director and the lowest for Country Sales Managers.
Determining Appropriate Compensation
The process for determining appropriate compensation includes analyzing external and internal organizational factors. The company should research how much competitors pay for similar job positions (Noe et al., 2022). This data will provide a starting point for determining compensation and benefits for the positions. Further, the company should identify the relative value of each position to its overall performance. If the position of the Executive Sales Director is vital for the companys successful expansion, the company may assign higher pay to this individual than its competitors do. Apart from wages or salaries, the company may provide its employees with incentive pay to boost employee motivation.
The company has to provide legally mandated benefits, but it can also choose to provide additional benefits to increase employee well-being. When determining additional benefits, the company should consider its goals, budget, and employees expectations (Noe et al., 2022). The benefits selected by the organization may influence which candidates it will manage to attract. For example, organizations providing high-quality benefits can weed out candidates with a strong preference for cash and low commitment to the organization (Werner & Balkin, 2021). Hence, GlobalX Beauty Company should choose benefits according to its goal of hiring and retaining the best talents.
Compensation and Benefits Package
The compensation for the three positions should include wages or salaries and incentives. Since GlobalX Beauty Company aims to build its market share in Eastern Europe, the suggested compensation and incentive type is salary plus sales-based incentives (Ingram et al., 2019). For equitable compensation, the pay should be based on the level of responsibilities involved in the position. Therefore, if the position of an Executive Sales Director involves more responsibilities than the Country Sales Manager, the person in this position should receive higher pay. As for sales-based incentives, which motivate employees to deliver better results, the company should provide team-based incentives rather than individual-based ones. Team sales incentives will encourage managers to increase the teams output (Lazear, 2018). Further, the company should provide legally mandated benefits, including social security, unemployment insurance, workers compensation, unpaid family and medical leave, and health care benefits (Noe et al., 2022). However, since GlobalX Beauty Company needs to hire and retain the best talent for the identified positions, it should include such additional benefits as retirement plans, paid vacation and holidays, sick leave, and medical care.
Legal Requirements and Ethical Issues
As was mentioned, there are legally mandated benefits that companies are obliged to provide. These benefits are designed to assist people facing financial hardships due to retirement, layoff, or occupational injury (Noe et al., 2022). The law mandates equal employment opportunities, meaning that people performing equal jobs should receive equal pay, regardless of their sex, age, race, and other characteristics (Noe et al., 2022). Furthermore, the Fair Labor Standards Act establishes a minimum wage of $7.25 per hour (Noe et al., 2022). If employees work overtime, that is, over 40 hours a week, they should receive higher pay for additional work hours (Noe et al., 2022). Moreover, laws prohibit child labor and oblige organizations to report the ratio of the pay of an ordinary worker to CEO pay (Noe et al., 2022). The problem of the difference in pay between the top management and typical employees can be considered an ethical issue. It becomes an issue when the employer can afford to pay higher wages but instead reduces them to the minimum, making workers apply to government assistance programs.
Conclusion
In conclusion, compensation for the positions should be based on candidates qualifications and job responsibilities. The employee in the position with the greatest responsibilities should receive the highest pay, and employees in similar positions should receive equal pay according to legal requirements. Furthermore, the company should provide additional benefits apart from legally mandated ones to attract the most appropriate candidates and improve employee engagement and retention.
References
Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., & Williams, M. R. (2019). Sales management: Analysis and decision making (10th ed.). Routledge.
Lazear, E. P. (2018). Compensation and incentives in the workplace. Journal of Economic Perspectives, 32(3), 195214. Web.
Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2022). Fundamentals of human resource management (9th ed.). McGraw Hill.
Werner, S., & Balkin, D. B. (2021). Strategic benefits: How employee benefits can create a sustainable competitive edge. The Journal of Total Rewards, 31(1), 8-22.
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