A description of a compensation package for your new
employment team
We
offer highly competitive compensation package that recognizes performance,
attract and retain the best talent around the world, contributing to our goal
of creating the best place to work.
We
encourage our people to feel business owners promoting creativity, innovation
and risk taking to achieve outstanding results aligned with the long-term
interests of the Company.
Basic Salary:
In this the most representative and
majority portion of the compensation package is concentrated, since this base
salary equivalent to a significant percentage of the total income of workers,
depending on the system used wage and compensation policies established in the
organization (Richino, 2000).
The base salary is usually
established per unit time made available to the company, for example, a unit
of this type for which the employee is remunerated, such as hour, day, week,
fortnight or month stipulated. So remunerated correspond certain basic salary
for certain unit of time worked (hours, days, etc. . .)
The determination of this wage is
based rather on the measurement of various factors inherent in the posts, as
the level of knowledge, skills, competencies and experience required for the
position in question.
In turn, the base salary provides a
steady income to the employee and also reflects the different hierarchies
within the company (Cascio, 2005). This type of pay is subject to statutory
deductions and discounts and often commonly established by collective labor
agreements (depending on the activity or item that applies) or by negotiation
between the company and the employee.
Our compensation package is designed
to attract and retain high-potential people who are motivated by the principle
of reward for performance. We reward through the balance between short and long
term, and individual outcome.
The aim of our employee’s compensation
is based on rewarding as business results and individual and level of
contribution to the company. Therefore, we have a package with the flexibility
that drives the basic elements of reward for performance.
·
Medical Coverage
Health Insurance: The Company has a health plan that
is designed to meet their specific needs.
Dental Plan: The health of the teeth affects the
appearance and overall health. Our dental plans encourage the prevention,
diagnosis and treatment so that they can keep smiling.
Vision Plan: This plan keeps your eyes healthy
and provides coverage on frames, contact lenses and routine eye exams.
Spending Accounts: This is a tax to pay for qualified
health care from deductibles to prescription drugs and contact lenses Rates
advantages.
Life Insurance: Life insurance protects their loved
ones when they cannot.
Disability Insurance: protection in the event of
unforeseen circumstances.
Coverage for prescription drugs: The prescription drug coverage
innovative offers clear choices and avoid confusion about their recipes.
Employee Assistance Program: The employee assistance programs
can help deal with problems such as depression and anxiety, personal and family
matters, and alcoholism and chemical dependency.
Coverage for cancer: Pay cancer treatments threatening
any budget. With voluntary coverage for cancer, have less to worry about their
ability to cope treatments.
Critical Illness Coverage: A heart attack, a stroke or cancer
can affect life in many ways. Let’s get help with financial challenges when
needed.
Supplementary Medical Insurance: The supplemental medical insurance
can add additional value to their regular health insurance. Thus, they will
have less to worry about if they need funds to pay transfers to the place of
treatment, prolonged hospital stays or more.
·
Vacation
leave flexibility election
This flexibility allows people to choose the periods of their
holiday according to their needs reconciliation (Richino, 2000). It is a very
positive step to facilitate the personal, family and work-life balance by
enabling parents with sons or daughters in preschool or school age to select
vacation days coinciding with school holidays of Christmas, Easter or summer,
resolving that the problem of organization that generate the holidays for
children and working parents.
·
Flexible
time and reduced labor hours on Fridays
People can decide the start time and the end of the day
within a range of hours previously agreed always complying with working hours.
Allows the template count greater autonomy to manage their time, reducing the
problems of reconciliation of family and work responsibilities.
The way to implement it is to establish a range of hours of
input (between 8 and 9) and a range of departure times (between 5 and 6 pm )
and the worker organizes their journey in these times of the form that best
suits your family and personal needs ( school hours , transportation ... etc.)
This measurement can be started in different ways
depending on the activity of the company, the hours of play the posts, etc.,
But in general, it is recommended to combine it with other measures such as the
creation of a living room or a place where working people can eat prepared food
brought from home, and reduce the times of lunch breaks.
·
Pension
plan 401k
A
401k/1165e is a retirement plan that allows employees of a company contribute
money before or after taxes through a payroll deduction agreement. The employer
is not required to contribute to the plan, but it may make matching or separate
contributions at its discretion.
Tax
savings - Employee reduce their tax obligations. Deferred accumulation of
assets to pay contributions. Contributions to the plan grow deferred
contributions until retirement. Then they’ll have the option to pay a special
rate of 12.5 %, if they receive the funds in a lump sum. If they choose to
receive periodic payments and is 60 years or more, the first $ 15,000 in 2008
are exempt from income tax.
Convenience
- Contributions are made automatically through payroll deduction.
Flexibility
- The employee can select the type of investment that best suits your needs and
change the amount of your contribution if you wish.
Major
contributions - This plan allows up to contribute $ 9,000 annually.
An explanation of why your pay system will work
In the current economic and social design or conversion
of a corporate benefit plan offered circumstances are an opportunity to provide
a modern and flexible compensation that satisfies organization and employees
(Cascio, 2005). However, this must be due to a prior assessment of the current
scheme, the updating of certain services and the objectives of the company in
this regard.
A description of three components of a total rewards package
that would motivate employees to reach peak performance
·
Base pay: monthly salary or hourly
wage.
·
Wage Incentives: Programs designed to
reward employees for good performance, bonds, equity in earnings, etc.
·
Benefits: almost always called indirect
remuneration. The benefits are granted through various programs (holidays, life
insurance, health insurance, subsidized restaurant or canteen, transport, etc.)
A description of your compensation plan’s benefits to the
individual as well as to the company
For
the employer, the benefits are synonymous of opportunities (Brockbank &
Ulrich, 2003): firstly, to reduce their labor and tax (deductibility of
expense) costs (reduction of the contribution base for contributions to social
security and payroll). Second, to design new portfolio of services (less value)
compensation loosen up and ensure employee satisfaction.
For
employees the benefit is linked to the business, and will respond to the
criterion of social sensitivity (Andújar, 1996), thus it
is understood that seeks to meet needs, not patrimonial enrich the individual.
Answer coverage in areas such as health, food, education and pensions, mainly.
The
compensation plan is an opportunity to meet the needs of the employee directly
where it is important (Andújar, 1996).
An explanation of how the Puerto Rican compensation plan
differs from the parent company’s compensation plan, including a rationale for
the differences.
In Puerto Rico, there are other forms of incentives,
including those that allow executives to design their own compensation package.
Regularly the best incentives are given to the senior corporate executives. The
common element in most of the executive compensation packages is its relation
to performance in the organization. Many companies have chosen to associate
incentives with executive type that gains from the organization to the shareholders.
Rationale for the differences
|
Puerto
Rico’s Traditional - Unilevel Compensation Plan
|
Parent Company Plan - Binary/Hibrid
Compensation Plan
|
|
The compensation plans are usually
focused on the executives of the company. It is a uni-level compensation plan
where executives directly enroll and pay only a percentage depending on the
level of their partnership, the more shares they have the more profit they
get. This compensation plan is the general rule in Puerto Rico industries.
|
Our plan is
Binary / Hybrid based on employees earning direct sales, bonds, sponsorship,
etc. There are several other bonuses to be hybrid. This compensation plan
rewards depends more on the teamwork to be binary.
In this plan all employees work together as a team to achieve their goals and seek to obtain compensations. |
References
Andujar Rojas, C. (1996).
Nuevas tendencias en la selección de recursos humanos en Puerto
Rico. Ciencias
de la Conducta, 11, 71-82.
Brockbank,
W. & Ulrich, D. (2003) Competencies for the New HR, Society for Human
Resource
Management, Alexandria, VA
Cascio,
W., (2005) Managing Human Resources – Human Resources in a Globally Competitive
Business Environment; Mc Graw-Hill
Companies, New York N.Y.
Richino, S.V. (2000). Selección de personal.
Buenos Aires, Argentina: Gráfica MPS.
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