This paper will discuss the current compensation plan BCC has in place and well as the need to discover new and unique opportunities to maintain and attract new employees.
BCC Recruiting Services is a temporary agency that provides temporary workers to owners and management companies in the affordable housing industry. BCC makes money by charging a fee to its clients for the use of specialized employees in the tax credit affordable housing industry. BCC extends its workers to clients who need help completing resident certification in apartment communities. The company also provides owners and management companies new personnel that allow for the temporary fill of open positions with our associates before making the final decision to hire on a permanent basis.
BCC current compensation plan includes both hourly and annual salary employees. The compensation package started with the basics including vacation and sick days only; there was no health care package. As a new small business a health care plan would have not been cost-effective for the company. Luckily, the staff of BCC was a close tight knit company that worked together as family. The employees saw the potential of the company and worked hard to accomplish the goal set for the company’s overall success.
The owner and employees understood benefits programs that address the needs of employees can have a great effect on output. Good benefit packages, created for the right reasons, can be used as an insignificant recruiting tool for employers looking to retain workers and hire new ones. A good package hopefully would have a positive effect and allow employees to see the overall package both salary and benefits. BCC did not have many programs however adding to programs and or creating new ones will help BCC and the employer to accomplish business goals while offering attractive benefits package. However, months after the company opened they realized they needed more staff. Since the company needed to handle the influx of new job orders and need more employee to fulfill those orders. BCC would require staff that was already trained and had expertise in that area. The company understood they would have offer employees an attractive package in order to be competitive and attract qualified employees. However the company did seem to understand that insurance programs would have lower cost; if more employees were added to the company.
In order to compete with other businesses, attract new employees and retain current employees an attractive benefits package would be needed. “According to The Principal Financial Group's benefits study for fourth-quarter 2011, health insurance is deemed the most important benefit by 90 percent of employees.” (Andruss, P. 2012)With this knowledge in BCC would need to change its compensation package from the basic plan to a more comprehensive one.
BCC will need to assess the total compensation package in order to bring in the trained employees needed to move forward and be successful. One major concern will play a role in determining the best way to go forward cost. Last year BCC decided to complete an assessment and create a custom survey. “As, of March 2009, companies spent an average of 14,000 per employee annually to provide discretionary benefits. Discretionary benefits account for as much as 25 percent of employees total payroll cost.” BCC will need to have a plan in place that would be attractive yet affordable to the company. (Martocchio, J. 2012 p. 153)
The current pay structure provides no employee input; the company was structure to provide a flat compensation plan based on pay for knowledge guideline. After weighing the alternatives, I would recommend to BCC to allow for employee input, find out what’s most important. My first task would be to define the labor market, determine companies to be included in the survey including size and location of the companies included.