Improved Compensation and Benefits System at Holland Enterprises

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Improved Compensation and Benefits System at Holland Enterprises

Employees are the organization’s significant asset, and the attainment or failure of entities revolve around the aptitude of the businesses to attract, retain, and reward aptly talented and proficient employees. Workers’ enthusiasm to stay on the job depends on recompense packages of an entity. Firms need to incorporate a variety of proper approaches to pay the employees to get the anticipated outcomes and guarantee employees optimum performance and retention. It is evident that the extent to which workers are gratified with their job and their willingness to remain in an establishment is a function of compensation packages and reward system of the organization. Business organizations strive to retain their workers by adopting various approaches to achieve long-term success. Scholars and researchers seem to agree on the idea that a sufficient compensation and befit system play a significant role in retaining the employees. Examining the case at Holland Enterprises in Carl Olsen St Mapleton proves how lack of proper payment of workers may result in massive employee turnout. The report also shows the essence of introducing appealing employee benefits that would attract and retain workers in the organization. Although Holland Enterprises may experience an increased expenditure in the financial resources by adopting an advanced compensation and benefits for employees, the system offers a solution to the high turnover rate, which is a primary challenge facing the organization.

Background Information

Holland Enterprises employs 3,500 workers, but the number of workers has reduced by 25% since 2010. Indications from within the family-owned refrigerated trucking corporation show that low payment and lack of other motivational benefits drive out the workers, creating the impression that the firm requires an adjustment in its compensation and benefits system. A qualified team should take charge of the process to develop a structure that would help the organization retain the workers.


Pay Structure

The group leaders should consider adjusting the salaries of the workers at various positions to increase what they currently receive. It is encouraging that the group already has a compensation plan detailed in the Driver Program that was adopted by the company to woo prospective job seekers. Presently, the team offers an average of $59,000 per annum up from $53,000 in the last half a decade following the increased pressure from various quarters to hike the remunerations (Holland Enterprises). The group also provides other incentives, which include a $1000 price for the driver of the year, I cent per mile incentive, and 1 cent per mile annual bonus (Holland Enterprises). The best approach to address the concern among employees would be to make adjustments in the critical areas by increasing remunerations the service providers should get at the various positions. The team, for instance, may choose to allocate 3 cents per mile yearly bonus instead of the 1 cent in a bid to increase the desire by the concerned employees to continue providing services in the organization.

The company may emulate some of the players in the sector, which are renowned for retaining their workers because of the favorable remuneration they offer to employees in various positions. Whereas Holland Enterprises provides an average of $59,000 per annum, the U.S. Xpress in Chattanooga, Tennessee, which is equally competitive offers $87,911 for heavy trailer truck drivers, and $110,000 for the Commercial Driver ((Holland Enterprises, 2018; U.S. Xpress). Other than offering competitive compensation for its workers, the U.S. Xpress provides additional financial incentives that appeal to the employees to remain in the organization. The team, for example, offers drivers with three or more years of experience with a 10,000 USD Sign-on Bonus that materializes in the first year. The group also provides 51-46 CPM and give to drivers a 5-6 CPM Safety Performance Bonus to add on the desires at the company.

The following is a proposal of how the management of Holland Enterprises may adjust the salaries to make them somehow more appealing to the workers;

Director of Operations $103,305 $56,900
Account Supervisor $56,700 $56,900
Transport Supervisor $54,133 $54,230
Fleet Manager $53,573 $43,720
Fleet dispatcher $32,869 $33,000
Regional Driver $52,322 $52,400
Commercial Truck Driver $59,000 $59,200


The team restructuring the employees’ salaries, however, must be keen on the adjustments to make sure the company is still in a position to generate enough profits for its activities. Failure to make the reasonable adjustments may result in an organization spending much on settling the salaries at the expense of organizational projects. The team planners should also ensure the increment does not cause any form of laxity among the employees. Such forms of slackness may cause poor performance, which is detrimental to the organization in the attainment of the set goals. Restructuring the workers’ salary, therefore, would require the intervention from qualified financial planners who will give guidance throughout the entire process.

Types of Benefits

In developing a pay structure that would increase the workers’ desire to serve in the organization, the team should build on the benefits it offers to its service providers. Fortunately, the group already offers a range of benefits to its drivers in the Driver Program. The group, for example, already offers paid vacations to different destinations, as well as, safe driving awards as a way of increasing the drivers’ desire to serve at the organization (Holland Enterprises). The logistics firm also provides medical cover to its drivers, a dental plan, and an extra stop pay up to $25 per halt. Borrowing from Marten will see Holland Enterprises improve its 401K plan, which determines how much the employer awards after the employees serve for a particular period. Whereas the employer’s general contribution is 4% in Holland Enterprises, the input is much higher at Marten where it stands at 5% meaning that the workers receive better returns when the offer comes at retirement (Marten). Increasing the contribution to the 401K plan will be a significant milestone in how Holland Enterprise offers benefits to its employees. Inferring to the example of how Marten provides benefits to its workers will also compel Holland Enterprises to introduce a pet policy, which will attach workers to the firm.

The group may also improve on some of the areas it currently exhibits significant performance. Enhancing the organization’s 401K plan in what is referred to as deferred compensation may take place in various ways. The organizational leaders or the team keeping may decide that the workers’ income be paid out at a later date or spread the portion as an employee stock option, or a retirement plan, or even as a pension. The chief advantage the team would get by adopting an enhanced deferred compensation plan is that it will only have to pay tax at the time when it releases the portion. The trucking company may borrow from the Walmart deferred compensation matching plan that outlines how the reparation process would take place. The composition by Walmart is much detailed that it describes forms of distribution, death benefits, and define all governing law controlling the process (Walmart 17). Holland Enterprises may also have to improve the way it provides health cover to its workers as a way of motivating employees. The team should not only focus on the nonelderly workers as it happens with many organizations but should also provide cover to other employees nearing the retirement age (O’Brien 5).  Also, the company should not perceive its role to provide employee health cover as a burden but an approach to retaining the workers.

The organization should also consider introducing fair policies on vacation and sick leaves, which are part of offers being provided by competing firms. The team should allow enough rest time for sick workers and offer vacation leaves for employees. Having such offers creates the impression that the firm caters for the personal wellness and satisfaction of the individual workers.

Developing Internal and External Equity

The organization’s compensation and work benefits should achieve external and internal equity such that the level of pay matches within and without the organization. The plan should ensure that the workers in the same level or service provision receive equal pay to achieve equity. The organizational leaders will invite several representatives to give their suggestions on what is right for the workers serving in different capacities in a bid to develop a pay structure that is leveled with the company. The structure shall consider the remunerations workers serving in other organizations within the same sector receive to arrive at a harmonized rate that will not raise complaints. The team setting the payment should also find out the national or state guidance on the standard offer workers serving in the respective positions should get.

Benefits of the Improved Compensation and Benefits System – Befits of the Plan in Retaining Employees

Holland Enterprises is likely to experience numerous benefits should it embrace a compensation system that increases the allotment to the workers at the various positions. One of the gains the company is likely to experience is the developed employer branding, which has a direct impact on retaining the workers. According to Adler and Ghiselli, employer branding provides a positive effect on potential workers who may decide stay longer in the organization than they anticipated (2). Employer branding refers to the company’s image as a conducive place to work according to the current and prospective workers (Adler and Ghiselli 2). The term is often applied to describe how businesses market their activities and provisions to the serving and potential service providers, interacting with them, and keeping their loyalty. Employer branding can be perceived as a set of qualities that can make a company unique, and promises a specific kind of employment opportunities. Offering satisfying payment and other remunerations as Holland Enterprises would do is a better way of achieving employer branding. The workers receiving attractive benefits would always want to serve in the station where since they get better returns for their services. Business leaders, therefore, should contemplate offering adequate pay alongside other benefits as a way of achieving employer brandind.

The company is also more likely to retain the workers because of high pay and benefits, which is an appropriate way of guaranteeing the workers their physiological wants. Abraham Maslow developed a concept in 1943 where he argued that the most important thing that would motivate people to put all their effort into a task is to meet the demands of their physiological needs. Increasing the workers’ wages, therefore, will make it easier for them to afford some of their basic requirements such as food, housing, and clothing. When the employees are properly paid, they will be able to meet their safety, belongingness, esteem, and self-actualization needs (Jerome 40). However, poor remunerations would subject employees to search for better opportunities to meet their basic wants. According to Jerome, the great connection between increased pay and ease of realizing the wants is stipulated by Maslow, which should guide employers to consider increasing the workers’ payment. Well paid employees meet their primary and secondary needs, an aspect that stabilizes their psychological well-being.

Other Benefits

Offering better remunerations and benefits to the workers will improve organizational brand, which may influence the success of the hiring process. According to Adler and Ghiselli, the awareness of a high payment and improved benefits that an organization provides can attract more potential employees (5). Currently, organizations spend much seeking for qualified personnel, yet they fail to maintain them because of the low remunerations to meet the employees’ needs. Offering better salaries and benefits, therefore, may go a long way in lessening the cost the organization incurs in the recruiting process. After the costly recruiting process, some organizations put little effort to retain such employees became part of the larger team because of its reputation as a good compensator.  Therefore, having in place proper compensations and benefits that satisfy the workers increase the likelihood of an organization to attracting and retaining future workers.

The organizational leaders at Holland Enterprises should anticipate the gains the company is likely to acquire from an improved compensation and benefits system. The leaders should cast their doubts that the approach may fail and go ahead to implement it at various rates for the workers providing services in different capacities. The team may seek to find out how such structures perform in other organizations and the benefits that they accrue, particularly concerning employee motivation and retention.


Even though research links improved compensation to high chances of retaining workers as well making them perform better, some studies discover that it is not only impressive pay that increases the desire for employees to serve at a particular station. The workers are less likely to stay for longer in an organization when the employer offers high payment yet the entity is characterized by an authoritarian leadership style (Gupta and Shaw 3). Many workers tend to detest leaders who are not inclusive in their decision-making activities and may not serve longer in the organization despite having an attractive compensation. Lack of ethical consideration may also drive workers away from an organization. Some workers prefer to serve in a station where the employees relate well to each other without any form of discrimination. Therefore, having better remunerations for employees is not enough to retain them in organizations. The organizational leaders, therefore, should always focus on improving other aspects that may trigger the desire of employees to quit. The business leaders, for example, may develop friendly policies, and embrace policies that incorporate the wellness of every person not only concerning benefits but also personal appreciation, growth, and development.


Organizations must recognize the need for reasonable compensation and reward structure of employees. Subsequently, this realization can be attained through market research in the different organizations both nationally and globally to determine the average pay in industry. Because of the changing economic setting across the globe, organizations need to evaluate their rewards program recurrently. In developing the pay system, an organization should focus on the long-term benefits, for instance, retention, reputation, and enhanced performance. In nations like the US, the law obliges that pays are discussed between organizations and unions. The organization will, therefore, conform in such circumstances while also warranting the recompense remains very viable and attractive. Holland Enterprises need to focus on developing a compensation and benefits system that would help to improve the motivation and retention of workforces. The team should develop a financial incentive program that is appealing to workers and, which is likely to make them feel they belong to the organization. The group should also focus on improving the other non-monetary benefits employees in various capacities get to inspire their desire to continue serving in the organization. Holland Enterprises may choose to adopt approached developed by other leading firms in the sector, which seem to build employer brand through better salaries and improved benefits receive for their services. The organizational leaders at the trucking company, nevertheless, should understand that retaining workers require other additional efforts, which include creating a conducive working environment and embracing a leadership style that is considerate of the views of all workers.









Works Cited

Adler, Howard and Ghiselli Richard. “The Importance of Compensation and Benefits on University Students’ Perception of Organization as Potential Employers.” Journal of Management and Strategy, vol. 6, no. 1, 2015, pp. 1-9.

Gupta, Nina and Shaw Jason. “Employee Compensation: The Neglected area of HRM Research.” Human Resource Management, vol. 24, 2014, pp. 1-4.

Holland Enterprises. “Trucking in Our Business.” Holland Enterprises Inc., 2018, Accessed on 18 July, 2018

Jerome, Nyameh. “Application of the Maslow’s Hierarchy of Need Theory: Impacts and Applications on Organizational Culture, Human Resource and Employee’s Performance.” International Journal of Business and Management Invention, vol. 2, no. 3, 2013, pp. 39-45.

Marten. “Marten Transport.” Marten, 2018, Accessed on 18 July, 2018

O’Brien, Ellen. “Employers’ Benefits from Workers’ Health Insurance.” The Milbank Quarterly, vol. 81, no. 1, pp. 5-43.

U.S. Xpress. “Average U.S. Xpress, Inc Salary.” U.S. Xpress, 2018, Accessed on 18 July, 2018

Walmart. Walmart Deferred Compensation Matching Plan. 2012, Accessed on 18 July, 2018

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