BUS FPX 4043 Assessment 6 A Competitive Pay and Benefits Plan

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Capella University

BUS-FPX4043 Compensation and Benefits Management

Prof. Name:

Date

Compensation Philosophy

Folly Faces LLC’s compensation program is designed to attract, retain, and motivate employees while ensuring fairness and transparency. The company emphasizes the importance of clear communication to ensure all employees understand the compensation process. This approach aligns the organization’s values with its business objectives to promote long-term operational and financial success. Folly Faces LLC is committed to equality, as demonstrated in its compensation policies and practices.

Compensation and Benefits Effectiveness

The effectiveness of compensation and benefits directly impacts the organization’s ability to attract and retain top talent. Compensation includes wages, salaries, bonuses, and commissions, while benefits contribute to employee satisfaction by addressing additional needs. A comprehensive and well-structured compensation strategy minimizes employee turnover, which can otherwise lead to significant financial implications for the company (Stahm, 2022).

Compensation: A Competitive Pay and Benefits Plan

Folly Faces LLC offers a competitive pay plan with a starting salary of $32,000 annually for full-time exempt face painters. This base pay serves as the foundation for compensation, representing the minimum remuneration excluding taxes and other benefits. The company ensures compliance with federal laws like the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964, which safeguard against compensation discrimination (Facts About Equal Pay and Compensation Discrimination, 1997).

Category	Details
Base Pay	Starting salary of $32,000 annually, inclusive of incentive pay.
Legal Compliance	Adheres to federal laws ensuring fair pay and protection against discrimination.

Employee Benefits: Base and Discretionary Plans

Folly Faces LLC offers a mix of mandatory and discretionary benefits that cater to employees’ diverse needs.

Base Benefit Plans

Mandatory benefits in Ohio include workers’ compensation and unemployment insurance. Additionally, the company provides health insurance, retirement savings plans, paid time off, and work-life balance programs, demonstrating its commitment to employee welfare (Haan, 2023).

Discretionary Benefits

To further enhance employee satisfaction, Folly Faces LLC offers discretionary benefits such as student loan assistance, tuition reimbursement, and family party booking discounts. These initiatives aim to boost morale, support skill development, and ease financial burdens (Admin, 2022).

Benefit Type	Examples
Base Benefits	Health insurance, retirement savings, paid time off, work-life balance programs.
Discretionary Benefits	Student loan assistance, tuition reimbursement, and party booking discounts.

Compliance with Major Laws and Industry Trends

Folly Faces LLC adheres to all federal, state, and local compensation and benefits regulations to maintain fairness and equity (Summary of the Major Laws of the Department of Labor, n.d.).

Trends in Employee Benefits

Current trends shaping compensation strategies include rising healthcare costs, growing awareness of mental health, and regulatory requirements for remote work. Folly Faces LLC stays informed about these trends to refine its benefits offerings (6 Key Trends Influence Employee Benefits in 2023 | BenefitsPRO, 2023).

Key Aspect	Details
Compliance	Observance of federal, state, and local regulations.
Emerging Trends	Mental health focus, healthcare costs, and remote work considerations.

Conclusion

Folly Faces LLC aims to establish itself as a respected industry leader by offering competitive compensation and benefits. By integrating base and discretionary benefits with legal compliance and trend awareness, the company fosters a motivated and loyal workforce dedicated to sustained growth.

References

Admin, C. (2022). Discretionary employee benefits 101. Higginbotham.

Connecteam. (2023, June 8). What is Base Pay?

Facts about equal pay and compensation discrimination. (1997, January 15). US EEOC.

Haan, K. (2023, August 2). Employee Benefits In 2023: The Ultimate Guide. Forbes Advisor.

Stahm, H. (2022). How compensation impacts your business. Payscale.