Human Resource, Development of Employment Packages Essay

Human Resource, Development of Employment Packages - Essay Example At this level of annual income, he will be able to maintain his cost of living in Texas. This salary will be complemented with a benefit plan comprised of employee assistance program; basic life, long term disability, and personal accident insurance; medical and dental care plans; time-offs; and a retirement plan. He will also be given company sponsored trainings and programs to further his skills and competencies. The incentive plan will make him eligible for year-end bonuses, profit sharing, and salary increases. In this business organization, employees have always been considered as strategic partners who help it achieve all its corporate objectives and goals. In line with the company's goal of motivating its employees to excel in their given positions, it is very important to create a compensation package, incentive plan, and benefits plan which looks at the needs and preference of the human resource. However, the company also needs to balance with its goals of profitability. Higher salary, incentive, and benefits for employees mean allocating a huge portion of the company's revenue to cover its costs. The aforementioned considerations have been the major foundation of the compensation package, incentive plan, and benefit plan drafted for James Richard. ... It should be noted James graduated from an accredited university in the United States and had accepted an entry-level engineering job in a manufacturing firm in San Antonio Texas and stayed there for five years. His interview with us shows his high level of knowledge and skills together with his commitment and responsibility in his previous job. Thus, the company we would like to hire him as we see his great potential and his productivity. The compensation package will be based on the average compensation of electrical engineers in the United States, the difference between the cost of living in San Antonio, Texas and here in Illinois, and the perceived value of James Richard for the company. According to the Bureau of Labor Statistics (2005), electrical engineers have an average hourly rate of $36.57 and an average annual salary of $76, 060. The lowest paid electrical engineers get $22.96 per hour while the highest paid ones get as high as $53.16 per hour. On the other hand, the annual wage ranges from $47,750 to $110,570. It should also be noted that according to the survey, Texas is one of the top five states which pays the highest to its employees. Electrical engineers in Texas are paid $40.47 hourly wage and have an annual mean wage of $84,180. It is assumed that James Richard is earning the average wage which is $84, 180. Furthermore, the cost of living in Chicago, Illinois is 16.5% higher than in San Antonio, Texas (Salary.com 2007). In order to maintain his current cost of living, he will need to find a job which pays $98,091. However, it should be noted that employers in Illinois typically 13.2% more than in Texas which means that if