Benchmarking intends to discover the best practices of companies that have solved issues comparable to Riordan Manufacturing's concerns. It's the best way to find solutions involving companies in the same industry, and then finding solutions to similar issues faced by companies in other industries. General Motors and Verizon are companies that have faced decreased sales and employee concerns over employee reward issues. In Riordan Manufacturing case, they have developed a new business strategy and provide new strategies with their employee reward systems.
Riordan Manufacturing has determined what it must do to motivate its employees, but at what cost or risk. Riordan's management team needs to decide what is best for their department's needs and what more important, money or recognition. The risk may be high for Riordan because if one department is not rewarded and the other is not, then there is distrust between each department. Riordan may need to utilize an employee performance and job function based on evaluation to achieve who needs to be compensated and who is actually doing their job efficiently. It may be the senior management that needs to be retrained in understanding the personal needs of their staff. Riordan can maintain a minimal risk if it consideration of their needs of the senior management, as well as retraining management on understanding their own departments. With this understanding it will provide minimal risk for employees, by creating a well structural strategy.
Total rewards packages are supplied by corporations and are often reasons why employees stay with the company or decide to work for the company in the first place. Reward programs and benefit packages include but aren't limited to pensions, health care coverage, or competitive wages. These benefit are a way to help the employee feel more a part of the company and motivate the employee to take care of their jobs and provide a better quality product to the consumers. However when employers are no longer able to maintain their part of the bargain, they become frustrated and there is a loss of company profits and employee turnover.
General Motors is the biggest supplier of automobiles the United States and the second largest publicly owned company in the world. General Motors has been overwhelmed in recent years with declining profits and increasing costs. "General Motors product mix in the United States, heavily weighted toward trucks, pickups, and SUVs, is on the wrong side of gas prices. It is up against a formidable and sometimes militant union whose ability to accept the full reality of General Motors problems is not assured and gravely, it is burdened by health costs, which it supplies for a population bigger than Detroit's that is, for a total of 1.1 million employees, retirees, and dependents" (Loomis, 2006). Employees and the Union are reluctant to change their rewards benefit packages. General Motors is looking for a new...