Overview
This assessment evaluates the benefits and rewards package Farm Fleet and Home (FFH) offers. A well-designed rewards program is essential to attracting highly skilled candidates who align with the company’s goals and vision. A robust total rewards package can significantly reduce turnover and resignations, helping FFH maintain a strong workforce. Recognizing and rewarding employees somewhat is a cornerstone of an effective benefits strategy, ensuring compensation is competitive with MBA FPX 5310 Assessment 3 Total Rewards Package Strategy market standards. Moreover, a structured rewards package fosters the retention of dedicated, high-performing employees, enhancing overall organizational success.
Key factors contributing to an effective total rewards program include:
- Competitive salary and incentive rewards
- Non-monetary benefits
- Insurance and retirement offerings
- Employee time off, holiday leave, and recognition programs
The MBA FPX 5310 Assessment 3 Total Rewards Package Strategy emphasizes the importance of creating a comprehensive and appealing total rewards package to meet the needs of employees and prospective candidates.
Total Rewards Strategy
Salary and Incentive Compensation
Market analysis shows that Midwest salaries are among the highest in the U.S. FFH should position starting salaries for sales representatives in the mid-range of market standards, around $55,000 annually. Performance-based incentives are recommended to attract top talent further. Employees could receive a $250 flat incentive for signed contracts over $5,000 and a 5% commission on total sales exceeding $10,000. These incentives reward high achievers while maintaining FFH’s profitability.
Non-Monetary Compensation
Parental Leave and Flexibility
Considering that 60% of households with children have two working parents, parental leave and flexible scheduling are vital components. FFH should offer:
- Paid parental leave
- Payroll-deductible college savings plans
- Dependent care savings options
Flexible scheduling can allow sales representatives to work remotely when family obligations arise. This approach demonstrates empathy and accommodates the personal circumstances of working parents.
On-Site Amenities and Perks
Small perks create a positive employee experience. FFH could provide:
- Complimentary beverages like coffee and bottled water
- Employee discounts of 5% on retail-priced items
- On-site facilities, such as gyms and breakrooms
These amenities show employees that their dedication is appreciated, fostering loyalty and morale.
Insurance and Retirement Benefits
Medical, Dental, and Vision Coverage
The U.S. Bureau of Labor Statistics reports that 75% of private-sector workers enrol in employer-provided medical plans. FFH should cover 70-85% of employee insurance premiums and offer consistent coverage for dependents to remain competitive. This ensures that benefits are accessible and equitable across the workforce.
Retirement Planning
Retirement benefits are critical for long-term employee retention. FFH should:
- Partner with a 401(k) plan administrator offering strong returns
- Match up to 3% of employee contributions while allowing employees to contribute up to 6%
This structure provides financial security for employees and positions FFH as a desirable employer.
Paid Time Off, Holidays, and Recognition
Paid Leave and Holiday Pay
Accrued paid time off (PTO) is a valuable benefit. FFH could allow employees to earn 8-10 hours of PTO per month based on hours worked. Employees who work during busy periods like Thanksgiving could receive incentive pay or compensatory leave to address holiday season demands.
Employee Recognition
Recognition programs motivate employees and build morale. FFH could introduce initiatives such as:
- “Employee of the Month” recognition
- Featuring achievements in company newsletters
- Celebrating milestones and accomplishments
These initiatives foster a sense of belonging and acknowledge individual contributions.
Legal Compliance
To ensure compliance, FFH must align its policies with laws such as:
- Fair Labor Standards Act (FLSA): Enforcing minimum wage, overtime, and youth employment regulations.
- Age Discrimination in Employment Act (ADEA): Protecting employees aged 40 and older from discrimination.
- Americans with Disabilities Act (ADA): Preventing bias against individuals with disabilities.
- Family and Medical Leave Act (FMLA): Ensuring eligible employees can take unpaid leave for medical or family reasons without discrimination.
FFH must establish uniform guidelines to guarantee equitable treatment for all employees, regardless of personal characteristics.
Recommendations
To strengthen its total rewards package, FFH should:
- Evaluate Current Policies: Review existing benefits to identify areas for improvement.
- Adjust Salaries: Align compensation with market standards while ensuring compliance with wage laws.
- Enhance Insurance Offerings: Cover 80% of employee premiums and 65% for dependents to attract and retain talent.
- Expand Retirement Plans: Collaborate with reputable providers for cost-effective, high-return plans.
- Implement Recognition Programs: Introduce “Employee of the Month” awards and other non-monetary incentives.
- Standardize Paid Leave Policies: Offer uniform accrual rates and a PTO buyback option for employees with excess leave.
These steps will help FFH maintain a competitive edge while addressing the diverse needs of its workforce.
Conclusion
The MBA FPX 5310 Assessment 3 highlights the critical role of total rewards in attracting and retaining talent. By offering a comprehensive benefits package, FFH can enhance employee satisfaction, reduce turnover, and build a strong, motivated workforce. The recommended strategies ensure that FFH remains compliant, competitive, and aligned with its mission to support its employees’ personal and professional growth. This commitment to a holistic total rewards approach solidifies FFH as a top employer in the Midwest.
Read more about the MBA FPX 5310 Assessment 2 Succession Plan Strategy for complete information about this class.
References
Bureau of Labor Statistics. (n.d.). Databases, tables, and calculators by subject. Retrieved from https://www.bls.gov/data/#employment
Pregnancy Discrimination Act. (n.d.). Retrieved from https://www.eeoc.gov/pregnancydiscrimination#:~:text=The%20Pregnancy%20Discrimination%20Act%20(PDA,term%20or%20condition%20of%20employment.
U.S. Department of Labor. (2019). Family and Medical Leave Act | U.S. Department of Labor. Retrieved from https://www.dol.gov/agencies/whd/fmla
U.S. Department of Labor, Employment and Training Administration. (n.d.). O*Net online. Retrieved from https://www.onetonline.org/
What should be included in a total compensation statement? (2017). SHRM. Retrieved from https://www.shrm.org/resourcesandtools/tools-and-samples/hrqa/pages/totalcompensationstatement.aspx
