Compensation Alignment with Marketplace-Free-Samples-Myassignment

Question: Discuss about the Compensation and Benefits of your Chosen Company. Answer: Introduction: Human Resource Management is one of the major aspects of business for succeeding in the market. The human resource management of the firm refers to the management of the people of the organization for effective and successful business outcomes (Hendry, 2012). Among all the aspects of HRM, the compensation approach is one of the vital parts needs to be discussed with detail explanation (Jiang et al., 2012). The compensation approach is a part of the remuneration package which is considered to be necessary elements for the multinational companies practicing expatriation. The following section discusses the important aspects of compensation highlighting the Aon Hewitt company. Company Background: Aon Hewitt is one of the leading multinational human resource outsourcing companies that provide management consulting service and human capital to various organizations. The basic function of the company is to provide service on outsourcing, consulting and reinsurance breakage service. The company was founded in 1940 and headquartered in United States. The number of employees of the company is approximately 29,000 (Aon plc, 2017). The company has its offices in 120 countries and the number of offices is 500. Internal Equity: Through the job evaluation process the company ensures the internal equity of the salaries among the employees. The company uses the JobLink methodology for the job evaluation for measuring the size of the jobs against consistent and appropriate criteria (Aon, 2017). Aon uses the job evaluation system to determine the fairness and consistency. The company uses the job evaluation system for defining the internal relationships of jobs within the organization. The factors through whoch the company uses the job evaluation system are based on the measurement of knowledge and application, problem solving and innovation, interaction, impact and accountability. The process of the job evaluation objectifies the internal equity in terms of the rate of pay for the new hires. Compensation Alignment with Marketplace: Aon Hewitt conducts compensation surveys in the market for the identification of the compensation packages offered by the competitor companies for the same job position. The standard market survey based on compensation approaches enables the company to maintain the external equity of pay within the organization as well as in the competitive market. The company also conducts the market benchmarking which objectifies the comparison and benchmark of the positions in the market, market pricing and skills practice, business evolution and job evaluation (Aon plc, 2017). The company analysis of external market by purchasing the report of the competitor companies and later analyses data to maintain the equity of remuneration packages with the other competitors. The data such salary range, increased amount, incentives, allowances, working hours, employment trends are some of the data that are being analyzed by the company. On the other hand, for the overseas business the company research and identifies the employment trends of host country. Employee Benefits: The company has established several policies in order to ensure the safety and retention of the employees in the organization. the company conducts various training programs for benefiting employees with the capabilities to avoid unwanted situations within the workplace (AonHewitt Learning Center, 2017). This is considered as the co-pay benefits which employees have been incorporated with the job responsibilities along with the determination of workplace safety. The employees are provided with number of facilities to encourage the employees to be engaged with the organization as well as their job responsibilities. Aon provides the employees with the opportunities to achieve for their jobs, short and long-term incentives, promotion, travel and other necessary allowances for the expatriates and so on (Aon plc, 2017). The remuneration packages of the company for the employees are based on the market research and the company tries to provide the best of all facilities to the employees in order to retain them as well as sustain in the market. Compensation Program: Compensation approach is one of the vital aspect of the human resource management which reflects the competency of the HR management in handling the employees (Herod, 2012). Compensation program of the company is not only based on the overtime work of the employees but also is for the expatriates who are managing the overseas business of the company. In addition, the compensation system is focused on the performance pay which is based on the evaluation of the overall performance of the employees. Likert Scale: Question Score 1 2 3 4 5 Is the compensation survey effective? Is the JobLink method of job evaluation is effective for the company? Are all the factors appropriates for the compensation approach for expatriates? Are the remuneration packages aligning with the market trends? Are employees satisfied with the remuneration packages? Rating: 1: completely ineffective, 2: partially effective, 3: average, 4: highly effective, 5: absolutely perfect Conclusion Therefore, it can be concluded from the above report that Aon Hewitt is one of the lading HR solution provider companies in the international market. However, the HR management system of the company is found to be not perfect. The report presents the various system through which the company identifies its opportunities to develop the employment system compare to that of the competitor companies in the international market. For the internal and external equity, the company is practices various process which to some extent effects the remigration packages and compensation packages offer by the company to its employees. Therefore, it is recommended to the organization to use the Factor comparison method as the job evaluation process. On the other hand, it is suggested that the company needs to modify the compensation model in terms of aligning with the market trends of compensation approach (Herod, 2012). Apart from that, the remuneration packages of the company also need to be modified in order to satisfy the employees of the home as well as the host countries. Along with this, the recommendation implies that Aon must incorporate the HR practice with some motivational and training programs apart from the reward system to enhance their job performance as well as organizational profit (Taticchi et al., 2015) References: Aon plc. (2017).Aon.com. Retrieved 1 December 2017, from https://www.aon.com/unitedkingdom/trp/reward/broad-based-compensation-advisory-solutions/pay-benchmarking.jsp Aon. (2017).Aon Hewitt - Job Link.Aonhewitt.gr. Retrieved 1 December 2017, from https://www.aonhewitt.gr/en/consulting/reward/joblink.html AonHewitt Learning Center. (2017).Aon Empower Result.Aon.com. Retrieved 1 December 2017, from https://www.aon.com/india/attachments/AHLC-Catalog-Certified-Rewards-Professional.pdf Boone, H. N., Boone, D. A. (2012). Analyzing likert data.Journal of extension,50(2), 1-5 Hendry, C. (2012).Human resource management. Routledge. Herod, R. (2012).Expatriate Compensation: The Balance Sheet Approach. Society for Human Resource Management. Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., Winkler, A. L. (2012). Clarifying the construct of human resource systems: Relating human resource management to employee performance.Human Resource Management Review,22(2), 73-85. Taticchi, P., Garengo, P., Nudurupati, S. S., Tonelli, F., Pasqualino, R. (2015). A review of decision-support tools and performance measurement and sustainable supply chain management. International Journal of Production Research, 53(21), 6473-6494.