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Total Compensation Methods Essay

2150 words - 9 pages

With an ongoing increase in unemployment, outsourcing, and globalization, employee salaries and benefit packages are experiencing frequent change. In past, a present, future workplace environment, compensation is a significant factor of choice in the job market for candidates seeking employment. Due to the recession in the economy, employers have been forced to become more resourceful in benefit and compensation packages offered to current and potential employees. Strategic planning has become a major facet in maintaining successful Human Resources Department of large corporations throughout the United States. In this scholarly paper, Learning Team A will provide a comparison of compensation strategies within various organizations. The impact of various compensation methods and benefit programs on employees and organizations will be discussed followed by how salary and benefit administration strategies relate to organizational culture and performance.American Eagle / American AirlinesThe philosophy at American Eagle / American Airlines (AMR) Corporation is there is more to life then work. Because of AMR's philosophy the corporation offers a total rewards package that many other companies can not match. Employees are encouraged to take advantage of a number of financial benefits, including an employee credit union, 401(K) plan, where the company will match up to 6% of employee contributions, profit sharing, and incentives. AMR also understands that each employee has unique needs; therefore, the company provides a variety of resources to help the employees and their families, meet their own business and personal life challenges (American Airlines, n.d.).One of the resources the company provides its employees is called the Employee Assistance Program (EAP). The EAP is a consultation, information and referral service for all employees, their eligible family members and for retirees. This service is designed to help employees identify and use resources, which will address personal and professional challenges. The service is provided at no charge to the employee and services are voluntary and confidential (EAP, 2009). Other incentives that AMR offers include several packages for health and life benefits. The company offers each employee packages that include medical, dental, life, disability, vision as well as optional plans such as long term care, legal aid and reimbursement accounts. The travel benefits AMR offers completes the total reward package. American Eagle / American Airlines currently do business in 250 cities and 40 countries throughout the world (American Airlines, n.d.). Travel benefits are offered to the employee, employee family members and friends. Not only do the employees fly at a reduced rate, they also enjoy special rates on hotels, car rentals, cruises and more. If the employee works for AMR for five or more years the employee and his or her family can fly for free in coach anywhere within the continental United States.AMR has...

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