SEIIC HR Benefits
Identify specific practices within the areas of compensation
and benefits that would aid SEIIC in developing the kind of employees that it
needs and for retaining its most valuable human capital.
SEIIC’s compensation and benefits programs are based on traditional
design principles typical of a company of its age and history. For example,
almost all employees receive annual pay increases of two to five percent. This
is frustrating to both managers and high performing employees. Managers would
like to give better pay raises to high performers. However, budgets are only
enough to cover the “required” raises to all employees; this leaves
too little for more significant raises to high performers. Naturally, as a
result, high performers who feel underpaid often seek other employment. The
company’s policies have tended to reward seniority rather than performance, and
because of the job evaluation system, compensation is tightly compressed.
Benefits are thought to be generous in that the company pays for most of the cost.
However, the structure of the benefits is rigid and only includes such
traditional benefits as health insurance, life insurance, retirement plan
(defined benefit) and a 401(k) plan (defined contribution).
The company recognizes that things are changing in its
business environment as well as relative to the needs of its people, especially
now that so much of its business in world-wide. As part of the ongoing analysis
of trends that should influence the redesign of HRM in the company, what are
the relevant trends in compensation and benefits that the company should pay
the most attention to? To answer this question, address the following:
Identify and explain at least three trends or recent
approaches in compensation that SEIIC should consider in its redesign effort.
Identify and explain at least three trends or recent
approaches in benefits that SEIIC should consider in its redesign effort.
Discuss the pros and cons to the trends/approaches
identified in compensation.
Discuss the pros and cons to the trends/approaches
identified in benefits.
Of all the trends/approaches you have discussed, which is
the one that has the most merit for compensation and which one has the most
merit for benefits? Justify your answer using examples and reasoning.
