Compensation Plan

Motors and More offer its employees the minimum wage as required by law. Consequently, the company offers statutory benefits. Despite the company offering the statutory benefits, it faces much competition from other companies operating in the country. The company offers those benefits that are within its revenue structure. Companies such as GM, Mercedes, Toyota, and Honda, offer benefits that are not only attractive to potential employees but also capable of retaining the talented employees within the company. Some of the companies offer benefits beyond what Motors and More offers, which means that the company has to have a change of strategy if it is to become competitive in the labor market.

Alternative Pay Methods

The employees can be paid using other methods that include merit pay, bonuses, and incentives. There is also the use of profit sharing, on-the-spot awards, as well as the gain sharing methods. Merit pay is the reward given to the employees for the work done. This pay helps in increasing the base pay received by the employees (Mapp III, Peterson, & Johnson, 2017). However, the goals of this incentive are not clear, which means that it may not attain the set objectives. There is also the provision of incentives and bonuses as rewards to the employees for performance and production (Zabojnik, 2014). The employees may also receive pay based on commission after the sales of automobiles. There is also the use of instant rewards when employees are found to have a good performance. According to Mapp III, Peterson, and Johnson (2017), “The award can motivate employees to work harder in order to appear as one of the best employees in the company.” However, the employees may feel that they should have received the awards and not those who received them. Profit sharing is ideal in motivating the employees to continue working hard for the company.

Available Benefits

The company offers mandatory benefits to the employees. Based on the law, the company offers three programs that include unemployment insurance, workers’ compensation, as well as social security. However, based on the completion in the industry, the company also needs to offer other benefits to remain competitive. Motors and More will offer its employees some statutory benefits. These benefits are just for the full-time employees (Mapp III, Peterson, & Johnson, 2017). The company should offer the standard industry benefits and offer some extras that are not the norm as a way to ensure that it attracts talented employees and retain those who have been working within the company. The company will provide better benefits to remain one of the companies that compete effectively in the market for talented employees. The company should give a mandate to the human resource for the responsibility of developing employee benefits (Zabojnik, 2014).

Some of the benefits that the company should offer include paid holidays, sick leaves, maternity, as well as parental leave. The company should also provide purchased health insurance to the employees as argued by Zabojnik (2014). However, due to the high cost involved. The company may also provide the employees with paid personal time-off for them to have a good work-life balance. Consequently, the employees can take a paid day off when they have matters to attend to in their families such as religious events, marriage, and funerals.

Communication plan

The company needs to communicate about the benefits offered to the employees during the recruitment process. Motors and More should ensure that its website has that information available for everyone interested in applying for a position in the company. Communicating effectively with the employees is essential to ensure everybody is aware of what the company offers. Having awareness is essential as it increases the rate of motivation for the employees. The HR department through emails or face-to-face meetings should communicate individually.


Mapp III, R. C., Peterson, J. M., & Johnson, R. Q. (2017). Qualified and Nonqualified Deferred Compensation Plans in Small Businesses: Creative Uses and Problem Solving (Powerpoint). In Tax Conference (Marshall-Wythe School of Law). William and Mary Tax Conference (No. 63, pp. 2_1-2_28). College of William and Mary, Marshall-Wythe School of Law.

Zabojnik, J. (2014). Stock-based compensation plans and employee incentives (No. 1325). Queen’s Economics Department Working Paper.

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