Holland Enterprises Compensation PackageErin K. HoweBUS 434Teddi ReillyMarch 30, 2014Holland Enterprises Compensation PackageAfter reviewing Holland's organizational strategy and exit talks over the past seven years, it is certain that through new and effective compensation and benefits created for Holland Enterprises, will reduce turnover rate, increase employee satisfaction and engagement, and benefit the organization's overall bottom line. Through careful consideration of compensation structures, incentive awards, internal and external actions and the organization's benefits package, Holland Enterprises' new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes: “To survive and succeed in a global economy, an organization must be competitive. An important factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it must also vary the type and amount of rewards offered, recognizing differences in individual contributions.” (p. 13) It is important for Holland Enterprises to recognize the contributions of an effective compensation system to their organizational effectiveness. To create organizational effectiveness, leaders must focus on the key elements of employee alignment and engagement, employee management systems, strategic structure and organizational culture. The level of employee engagement influences customer experiences and the organization's performance in terms of productivity and profitability. To achieve organizational effectiveness, an organization must: Provide a strategy that includes a competitive compensation package. Henderson Resources. Compensation management in a knowledge-based world. 10th edition. Pearson Learning Solutions, Bookstore. Retrieved from: http://online.vitalsource.com/#/books/0558582451/pages/14878186Human Resources Council. (n.d.). Compensation and benefits. Internal and external equity. Retrieved from: http://hrcouncil.ca/hr-toolkit/compensation-systems.cfmO'Hanlon, M. (2014). Are you trying to be more strategic?. Retrieved from: http://www.compensationcafe.com/compensation-philosophy/page/3/Right Management. (n.d.). Organizational effectiveness: discovering how to achieve it. Leadership Insights Journal. Retrieved from: http://www.right.com/thinked-leadership/research/organizational-effectiveness-discovering-how-to-make-it-happen.pdf