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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:
Check 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.
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