Employer Costs and Employee Benefits

Companies often attempt to reduce staffing costs by holding down compensation levels, shifting costs for insurance and other benefits at least partially, to workers, and instituting pay-for-performance compensation strategies. The idea that eliminating benefits for time not worked reduces employer costs has been characterized as one strategy that may be useful. However, most benefits in the form of insurance or vacation time are standardized and cannot be prorated based on hours at work.

Certainly, employers can insist that vacation time be based on some formula reflecting hours worked. Health and life insurance benefits on the other hand should not be used in this manner. Pay-for-performance seems to be an excellent strategy for determining compensation and reducing costs.

According to Bohlander and Snell (2004, p. 388), companies are well advised to use value-added compensation by ôevaluating the individual components of the compensation program to see if they advance the needs of employees and the goals of the organization.ö

At the company with which I work, pay-for-performance standards have been adopted to reward employee effort and performance. Highly motivated and ambitious workers appreciate these rewards. However, I have had to terminate employees who did not put ou

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ructures. It has also enjoyed the status of penetrating the ready-to-drink beverage market first and precipitate the New Age category. Under Triarc and then under Cadbury, an ailing brand enjoyed a dramatic turnaround and stands poised for further growth. However, there are some problems which the company will need to address in the future. These are: 1. Snapple continues to face heightened competition in terms of New Age beverages from rivals. 2. The energy beverage sector is a popular new beverage option and Snapple's Venom has received limited advertising support which makes competition against established brands such as Red Bull very difficult. 3. Positioned within Cadbury and distinct from Cadbury's other beverage line (Dr. Pepper/Seven Up), Snapple may nevertheless be somewhat lost in the organizational structure of a large and multifaceted 4. Snapple's Little Fruits characters appeal to younger teens and not to older adolescents and adult consumers, limiting the appeal of the brand. 5. The 2002 campaign aimed at 18 to 24 year-olds featuring an anthropomorphized Snapple bottle has enjoyed some popularity, but again is targeted to a fairly small if highly profitable market sector. 6. Snapple
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Approximate Word count = 1453
Approximate Pages = 6 (250 words per page)

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