Compensation plan for mattel essay

Companies need a thoughtful compensation program to remain competitive within their industry and to attract and retain top talent. Employers who just go with whatever they feel they should pay their employees will slowly lose the talent game they are playing with their competitors.

In order to attract and retain top talent, you need to have a competitive compensation plan in place. The four primary direct forms of compensation are salary, hourly, commission and bonuses. Beyond direct compensation, there is indirect compensation, such as benefits and equity-based programs, which is just as important a part of your plan.

Add up your expected compensation. This can be fairly easy if you are disallowing overtime. Simply add up the expected compensation for each employee. Don’t forget the cost of benefits. For example, if you have six employees being paid $25,000 per year, then you have $150,000 in base compensation.

A compensation plan, also referred to as a "total compensation plan," encompasses all of the compensatory components of a company's strategy – employees' wages, salaries, benefits and total terms of payment. Employee compensation plans also include raise schedules, all fringe benefits, and any union perks or employer-provided vendor discounts.