Compensation and Benefit Systems of Starbucks company
The term compensation is normally taken to mean the amount of salary package, which one receives from the employer. However, there is more to the term than just salary. The term also includes the direct and indirect benefits and rewards an employee receives in return to their contribution to the organization’s success (Schultz).
The compensation system of an organization is deemed to be fair if it is aligned to the organization goals. The term total compensation is in use to mean the summation of all the rewards and benefits, which an employee gets and the salary.
Most employers want to get and keep the most qualified employees, which means they will offer the most favorable compensation formula. In other words, firms will always work on the most competitive compensation package. Although, wages are the basic consideration, it is imperative to note that other factors like the organization culture and the quality of life are becoming more significant to the employees decision making today. In a survey by Robert Half International, it was establish that employees consider the corporate culture and the employee benefits before taking a job offer. Most of the employees considered the chances of professional development and availability of opportunities to advance as important factors. In fact, these factors ranked almost the same as the salary.
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Automation of the human resource function continue with compensation and benefits in characteristic by a move to total rewards. Thus, total rewards included the additional health benefits, maturation of healthcare delivery to managed care, and employee assistance program. Starbuck has positioned itself strategically to be a business leader, which is a technology based organization (Harnrungchalotorn and Phayonlerd).
Cauton , Peter Paul. “Flexible Benefits: The Soluziona Experience.” Ateneo Center fro Organization Research and Development (2003).
Harnrungchalotorn, Sornchai and Yaowalak Phayonlerd. “Starbucks with Corporate Social Responsibility (CSR).” Faculty Board of Economic Sciences, Communication and IT Business Administration (2008).
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