The Toyota Inc Motor Manufacturing Company

The Benefits of Employee Compensation

The benefits that an employee receives from their place of employment in exchange for the services they provide to their employer, business, or organization are known as employee compensation (Tracey, 2016). It also refers to the total money that an individual expects to get while working for an organization.

Total Cash or Wage Compensation

Total cash or wage compensation is one type of employee remuneration. This is the main justification for most employees working. Many of the workers get annual or hourly salary while others receive a variable rate of payment which is based on the employee performance. An example of wage compensation is the car salesperson whose wages are determined by the total number of cars sold.

The Sick Leave and Vacation Compensation

The sick leave and vacation compensation is the second common method of compensation where most of the employers provide their workers with the sick leave and vacation. Many of the firms offer monthly or annual holidays.

Types of Employee Compensation

It is determined that newly recruited workers earn an average of two-week vacation per annum and a week sick leave vacation. The third type of employee compensation is the minimum wage which represents a minimum amount determined and established by the employers to pay the workers either per hour or month. For the last decades, there is an increase in the minimum wage of employees to maintain the inflation rate of the economy with average minimum wage per hour determine to be $7.25 (Bryant & Allen, 2013).

Benchmarking and Employee Benefits

The benchmarking activities of the Toyota Inc motor company play a key role in measuring the services, practices, and products provided by the company against those provided by the toughest competitors or the rivalry companies such as Mitsubishi. Additionally, benchmarking activities allow the managers to determine best practices and to prioritize more opportunities for more profits and success which is either formal or informal.

Cost of Employee Benefits

The cost of employee benefits for the Toyota Inc motor company includes the basic salary, benefits, and employment taxes which has been on the rise. The Toyota Inc firm has much cost of employee benefits per year as compared to the return on investment (ROI). Ways of communicating the benefits to the employees include effective communication method, providing education, having a written document to the employees, simplifying the language of communication. Additionally, the firm provides assistance and relevance of its activities and services to the workers through reliable digital services such as electronic mailing.

Mandated and Voluntary Benefits

The legally mandated benefits and voluntary benefits exhibit major differences within the operations of the business. Rogers, (2016), argues that the mandated benefits are lawfully guaranteed by the government to the employees from their employers and they include social security, medical, and vacation leave. However, the voluntary benefits are provided by the workers and are not legal according to the law. The voluntary benefits include dental care, life insurance.

Factors Influencing Compensation and Benefits

The internal and external environmental factors likely to influence compensation and benefits include (1) competition which affects recruitment of qualified workers (2) legislation which dictates how Toyota Inc firm retains the employee data and personnel records (3) employee relations which act as the key factor for more profits to the company.

Challenges and Solutions in Compensation and Benefits

The Toyota Inc company is faced with many challenges regarding compensation and benefits. These issues include working on a tight budget, salary compression, low market pay, and stiff competition. According to Tracey, (2016), these problems reduce the efficiency of the employees, in addition to the loss of more workers due to the salary compression with increased work rate within the firm. However, the Toyota company must solve and provide better wages, work on a better budget for its success and that of the employee. Currently, there is increased demand for better wages for all the workers due to the growth in the economy of many nations across the globe. This is significant in improving the living standards and economic growth of the country.

References

Bryant, P. C., & Allen, D. G. (2013). Compensation, benefits and employee turnover: HR strategies for retaining top talent. Compensation & Benefits Review, 45(3), 171-175.

Rogers, D. (2016). Compensation and benefits survey 2015. Journal of the Academy of Nutrition and Dietetics, 116(3), 378.

Tracey, W. R. (2016). The human resources glossary: The complete desk reference for HR executives, managers, and practitioners. CRC Press.