Compensation Administration and Various Benefit Programs

Compensation Administration and Various Benefit Programs

Assignment 5-2

Professor Rhonda Hess

March 24, 2013

Various Benefit Programs

When setting up benefits for employees there are many options to choose from and employers need to make sure they have the right fit for their organization. Some of the options that employers need to consider putting in their flexible package for employees are health, dental, vision, life insurance, dependent care, and 401(k) savings plans in order to remain competitive in the market and to be able to attract new and talented employees (Milkovich, Newman, & Gerhart, 2011).

Harrisburg Area Community College (HACC) was established in 1964 as Pennsylvania's first community college, HACC has grown to become a multi-campus institution that plays a vital role in improving the quality of life in Central Pennsylvania. Harrisburg Area Community College provides high quality, low-cost educational opportunities and strengthens the local economy, while training the region's workforce, and sharing our cultural and educational resources with the community. Harrisburg Area Community College has nearly 20,000 students full and part-time and over 1400 employees ("HACC, Central Pennsylvania's Community College Home Page," 2013).

Harrisburg Area Community College has established shared governance at the campuses to ensure policies are put into place and all employees are represented fairly. The employees are represented as classified, professional, administrative, and faculty normally there are two or three of each classification representing their constituents and they vote on policies and procedures.

When it comes to compensation it is no different there is a compensation committee called the college compensation advisory committee or (CCAC). The CCAC was established to annually review pay, insurance, and insurance carriers. HACC currently went through a pain staking review of insurance and their carrier.

Benefit Options and Compensation Administration

A good compensation plan should answer the following questions: How competitive should the employee compensation be, where will the company pay high, middle or low to the market, the organization needs to focus on the surrounding businesses and what their compensation plans are, and will the company use incentive or variable incentive compensation programs, and how will the company administer base pay (The Bureau of National Affairs, Inc., 2013). Compensation programs are designs to pay employees for their contributions and to reward high achievement. Some key factors in compensation programs include pay for work and performance, paid leave, and loss of income provisions