Berkshire Hathaway Case Study Solution
Section A: Areas of compensation and benefits
Identify and explain at least three trends or recent approaches in compensation that your Berkshire Hathaway should consider in its redesign effort.
Compensation is an essential piece of human resource, which helps in urging the workers and enhancing company’s effectiveness. Also, the company is losing its staff because they have neglected to address the key issues of pay and benefits that made their representatives unsatisfied. Therefore, they should offer standard bundle benefits for more dynamic and current look that will lead to progressive behavior and modern thinking.The following are three key trends that the company should implement, it includes;
1. Variable pay plan design
The company should consider a variable pay plan that will realign its remuneration spending plan to work to support it by putting aside an expanded amount of the cash accessible for top performing employers rewards and boosts in salary. This will persuade everyone in the company who are working hard and serious about their business to increase in their career and thus to compensate those employees who justify it. These progression changes in the remuneration structure will be a win-win for the company as well as for the employees.(Group, 2012)
2. Equity pays plan design:
The equity compensation plan design is non-cash pay that shows the ownership of employees in the firm. This kind of pay can take many structures, including stock options, limited stock and performance stocks. The equity plan permits the workers of the firm to participate in the benefits by means of appreciation and can empower preservation and job severity.
3. Organizational goal sharing plan design:
The company’s management should comprehend that performance of the employee is fixing specifically to how they feel to the organization they work for. Thisis the reason many organizations have started to consider goal sharing compensation plan, since they can be an intense motivating force for representatives to work harder for the organization and would provide the satisfaction for earning more profit. It supports the flexible pay plan that will improve individual performance, and if the particular goal is met than the company will offer bonus by some percentage of eth total profit. This type of compensation plan has become a new trend.
Identify and explain at least three trends or recent approaches in benefits that Berkshire Hathaway shouldconsider in its redesign effort:
The benefit definition does not furnish companies with a decent method for characterizing the bundle of benefits. Following are the three trends in benefits that make each employee motivated and desire to stay for long time period and make them more commitment to their work and to meet the goals of organization. It includes:
1. Protection:
This program will help the employee from paying any extra amount in case of any risks such as illness, unemployment, disability etc. These benefits include accident, disability hospitalization, medical, surgical and other insurance plans. Along with this, it includescontributions and supplements to compensation for unemployment, credit union, health and welfare funds etc.
2. Time off the pay:
The other trend of benefits provides the workers with number of paid leaves (means when employee is not working). These benefits include, call back pay, family allowances, vacation pay with sick and personal time, time spent on the contractor,
3. Services:
These types of benefits help the company and employees to increase the work and off work situation. The benefit include; weekend, holiday, overtime and shifts premiums.
Discuss the pros and cons to the trends/approaches identified in compensation:
Pros of Variable pay plan:
There is a wide range of benefits offered to workers, for example, Paid Time-Off (PTO), different sorts of insurance plans, (for example, life, dental, medical and inability), support in a retirement plan, (for example, benefits or 401(k)), or access to the company’s vehicle. A few other benefits are essential, which are controlled by the administration while others are deliberately offered to satisfy the need of a particular worker populace. The benefitsplans arecommonly not gave in real cash but rather frame the premise of a workers' compensation bundle with base pay and bonus.
Cons of variable pay plan:
Most variable pay plan tends to focuson quantity over quality, with substantial units of estimation; for example, amount delivered or number of clients served being the premise of estimation instead of elements, or another example could be consumer satisfaction, which issubjective and hard to quantify. It also demotivates other employees who do not meet eth desired objectives.(Nayab, 2012)............................
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
Related Case Solutions & Analyses:
AtekPC Project Management Office
Credit Where Credit is Due: The Latino Community Credit Union
Framework for Pursuing Diversity in the Workplace
Governance of the Business Family
Note on the Structural Analysis of Industries
Anatolia National Telekom
Running Head: Ben & Jerry Case Analysis
James Bowman and Coopertree Capital in China
Campbell: How To Keep The Soup Simmering
Gulf Oil Corporation-Takeover
