Organization's Compensation and Benefit Plan Research Paper

Organization's Compensation and Benefit Plan - Research Paper Example As the discussion stresses one of the factors that makes them successful at it would be providing their employees not only with the minimum wage, social security contributions for each employee, whether a non-exempt or exempt, and the FUTA or the Federal Unemployment Tax Act, which most companies adhere to as it is mandated by law; they also provide more opportunities for success for their employees such as the entrepreneurial opportunities for its protein-boosted managers. We all know that a lot of companies look at applicants in a bad light once their working record reveals a short-term service in their past workplaces because of their desire for career growth. However, the Jamba Incorporation has a different mindset on this one. For them, this is a good sign from an employee that has a lot of potentials to be an asset to a company, having the ability to possess utmost ownership in the business, which results in increased responsibility and loyalty. Thus, they provide entrepreneuri al opportunities to their managers by giving them a percentage of the store’s cash flow for a bi-period, depending on how they run a certain branch’s business. Aside from that, they give credit to their general managers’ ability to increase their yearly sales by giving them money that accrues in a retention account which stretches over a three-year period.This paper highlights that once the manager has served the Jamba Incorporation for three years, the bonus is immediately paid to them. Another bonus their employees enjoy would be that when a general manager completes a three-year term and decides to sign another three additional years with an employee, he or she is given a three-week paid sabbatical which is not charged against their vacation leaves while general managers can look forward to $1,000 bonus if he or she is able to promote an assistant manager to general manager. All this is an application of the principle of providing â€Å"benefits in kind or b onuses,† which means that as an employee gets his or her monthly wage which is taxable, a company can practice a retention system by providing bonuses in cash such as these in exchange of a business they close for the company which is not taxable. This indeed has created a generation of employees that are motivated to do more and be at their best all the time. Another great compensation plan that Jamba awards its employees is that they provide all their managerial employees with stock options.