Bechmarking: Riordan

Abstract

Benchmarking intends to discover the best practices of companies that have solved issues comparable to Riordan Manufacturing's concerns. It's the best way to find solutions involving companies in the same industry, and then finding solutions to similar issues faced by companies in other industries. General Motors and Verizon are companies that have faced decreased sales and employee concerns over employee reward issues. In Riordan Manufacturing case, they have developed a new business strategy and provide new strategies with their employee reward systems.

Riordan Manufacturing has determined what it must do to motivate its employees, but at what cost or risk. Riordan's management team needs to decide what is best for their department's needs and what more important, money or recognition. The risk may be high for Riordan because if one department is not rewarded and the other is not, then there is distrust between each department. Riordan may need to utilize an employee performance and job function based on evaluation to achieve who needs to be compensated and who is actually doing their job efficiently. It may be the senior management that needs to be retrained in understanding the personal needs of their staff. Riordan can maintain a minimal risk if it consideration of their needs of the senior management, as well as retraining management on understanding their own departments. With this understanding it will provide minimal risk for employees, by creating a well structural strategy.

Total rewards packages are supplied by corporations and are often reasons why employees stay with the company or decide to work for the company in the first place. Reward programs and benefit packages include but aren't limited to pensions, health care coverage, or competitive wages. These benefit are a way to help the employee feel more a part of the company and motivate the employee to take care of their jobs and provide a better quality product to the consumers. However when employers are no longer able to maintain their part of the bargain, they become frustrated and there is a loss of company profits and employee turnover.

General Motors is the biggest supplier of automobiles the United States and the second largest publicly owned company in the world. General Motors has been overwhelmed in recent years with declining profits and increasing costs. "General Motors product mix in the United States, heavily weighted toward trucks, pickups, and SUVs, is on the wrong side of gas prices. It is up against a formidable and sometimes militant union whose ability to accept the full reality of General Motors problems is not assured and gravely, it is burdened by health costs, which it supplies for a population bigger than Detroit's that is, for a total of 1.1 million employees, retirees, and dependents" (Loomis, 2006). Employees and the Union are reluctant to change their rewards benefit packages. General Motors is looking for a new and better way to change the company's total rewards packages so the company can be profitability and keep employee moral high in order to produce a quality product. These changes need to be in order with keeping the union happy while being financially beneficial.

Verizon is one of the nation's largest wireless providers, serving over 42 million customers. Verizon "Has a highly developed program, where the high value of the benefits program is tied together with the motivational aspects to coincide with the organization's strategies. Specifically, the Human Resources department is responsible for developing and implementing global Human Resources, practices, policies, strategies, programs and tools that keep the workforce occupied, focused, energized, and to be motivated achievement of the business strategic objectives. The policies and programs include employee development, training, staffing, compensation and benefits, employee relations, diversity and human resources compliance. Human Resources also is responsible for the establishment of corporate objectives, policy, governance, and design, implementation to achieve financial satiability" (Verizon.com, 2007). Verizon Total Rewards Program, including base compensation, incentive plans, pension and executive compensation and benefits. Verizon offers flexible benefits including a variety of options for medical, dental, vision, life insurance, reimbursement accounts and 401(k) with employer matching contributions. They also offer work and life benefits such as an Employee Assistance Program, Dependent Life Insurance, Adoption Assistance, and in some locations, Day Care Assistance.

Verizon encourages career development and to expand their professional qualifications through formal education by utilizing the tuition assistance