Employee Compensation and Benefits

Employee Compensation and Benefits
Institution
Date
Section 1 Narrative
Introduction
As the director of the Shell Group of Companies, and given the task to develop employee compensation and benefit package for a new employed secretary, it is imperative to state that when proper structures are placed on how to pay new workers, a tone for a long term satisfaction or disappointment is established. As the director of Shell, we are committed to our workers with the aim of maintaining good relations with our employees without losing the good talents they have.
A compensation plan would refer to the combination of waged, salaries and other related benefits that an employee is subject to in exchange for the services they offer in a company. This plan also determines how these wages are paid, either annually with bonus payments, incentives, and other benefits to a worker. This paper seeks to create an employee benefit and compensation package for a new staff member at the Shell Groups of Companies.
Shell Group of Companies Employee Compensation and Benefit Package
To begin with, an employee’s compensation plan refers to all the collective proponents that also consider the manner at which compensations are made and the terms and purposes for which employees are susceptible to receive some increases, bonuses and incentives. In coming up with this compensation plans, the elements discussed below should be considered (Clemons, H. L. (2013). It is, therefore, imperative that company employees understand the due processes of understanding the differences between salaries and wages when it some to employing new staff members.
Wages that are paid to employees depending on the hours worked and received their wages on a non-exempt basis. On the other hand, salaries are paid to workers for a specific job, regardless of the number of hours worked with these employees termed exempt. The differences between the two approaches to compensation are defined by the position and the types of tasks that an employee is delegated (Clemons, H. L. (2013). In a nutshell, exempt workers may include professional workers, administrative assistants and executive personnel’s and others as determined by the Labor Standards Act of 1938
Hourly Wage
In the event that our new employee falls under the classification of anon exempt worker, he/she is entitled to receive a wage that can be computed on an hourly basis inclusive of any overtime hours worked in excess. Overtime hours should exceed 40 hours in every week and is considered one and a half times the hourly rate (Clemons, H. L. (2013). On the other hand, if the new employee falls under the labor union contract, his/her wages will be set as per the contract terms for a particular period.
Annual Salary
When a worker falls under the category of non-exempt personnel and is entitled to a salary, it means that they are not paid for the overtime hours they work. Salaried employees, therefore, receive annual salaries or other methods of compensation that nullify the overtime payments. The compensation plan for such an employee is based on his salary scale and also considers certain factors such as education, the number of years of professional experience...