Analysis of YLSS Compensation and Benefits

Junior (College 3rd year) ・Business ・APA ・5 Sources


Analysis of YLSS Compensation and Benefits. A1 In the world of software development, YLSS is a relatively new company. This makes it essential for the business to create a distinctive and alluring hybrid approach to their incentive level plan (Kumar, 2012). The pay-policy mix listed below is the best method for luring and keeping top talent at the organization;



Minimum Pay

Maximum Pay


Software Developer


$ 70,000

$ 78,000

Year-end bonus

Profit sharing

Marketing Specialist


$ 55,000

$ 60,000

Annual $ 20,000 commission

Profit sharing

Sales Representative


$ 52, 000

$ 58, 000

Annual $ 15,000 commission

Profit sharing

Customer Care Representative


$ 35, 000

$ 40,000

Year-end bonus

Profit sharing

Administrative Assistant


$ 30,000

$ 34, 500

Year-end bonus

Profit sharing


San Mateo, California is densely populated with software development companies, and thus, the competition for labor is higher than other regions in the United States (Bryant & Allen, 2013). For the company to attract talents and expertise in the competitive sector, it is recommended that it has a lead in three key positions; Software developers, marketing specialists, and sales representatives. Additionally, it should match the competitors in the customer service representative and administrative assistant positions.

Justification. Considering that YLSS is new in the market, it needs quality software developers, marketing specialists, and sales representatives to design, market and sell the company's products. The recommended leading pay, for the three groups, will attract high quality employees to the company. Also, the match pay for the customer sales representative and administrative assistant combined with unique benefits such as profit sharing and year-end bonus makes them highly competitive.

The commissions offered to the marketing and sales representatives is necessary to motivate them to increase the company's software awareness as well as sales (Martocchio, 2017). The two groups directly interact with the clients and thus affects the total sales of the company. Consequently, they should be well-motivated to enhance the sales which also benefits the company.

The recommended year-end bonus for software developers, customer sales representative, and administrative assistant is crucial in ensuring that they feel appreciated and motivated (Bryant & Allen, 2013).

Finally, profit sharing is a crucial factor in the success of the company's plan to double, in size and productivity, within the next six months. The strategy integrates the employees into the company making them work towards ensuring profitability of the business (Pianko & Samuels, 2014). The awareness of sharing in the company's profit motivates them to work hard towards achieving the highest gains possible.


YLSS should make the following adjustments on the base pay-policy mix;

YLSS should start offering individual performance bonuses to the employees. The rewards should be in the form of lump sum payouts at the end of the year.

The company should introduce profit sharing among the employees. The profit shares should be distributed depending on the level of employees with the high-level employees earning the highest.


Justification. The current stage of YLSS requires vigorous production and marketing to ensure that they meet their growth objectives. This can only be achieved by having top-notch and motivated employees (Biswas, 2014). Individual bonuses motivate the employees to achieve the goals and target set. Additionally, it does not strain the economic resources of the young company since the payouts are paid as one-offs and do not add to the salaries of the subsequent years (Kumar, 2012).

Profit sharing increases the urge in the employees to increase the profits (Bryant & Allen, 2013). The urge results from the awareness that they are entitled to a share of the profit hence the higher the profit, the better the share. This strategy attracts top employees and helps in the retention as they work towards determining their profit shares.


YLSS should revise the following benefits to attract and retain quality employees;

Health Insurance Plan

Health is a crucial consideration for job applicants (Bryant & Allen, 2013). Employees prefer an environment that offers a comprehensive health plan. As such, YLSS should pay at least 75% of the health insurance premiums on behalf of the employees. The increment makes the company lead in one of the most critical benefits in the industry. The average pay for health insurance premiums in California is 72%.

Group Term Life Insurance

Employees are attracted to an employer who cares for their general welfare (Martocchio, 2017). This insurance plan offers security to the employees and increases the employee-company attachment. Considering the importance of the benefit, the human resource manager should improve the contributions from the current $50,000 to $ 55, 000.

Performance Bonuses

YLSS, being a new company, needs to grow both in size and productivity. It should appreciate the efforts of its employees to motivate them to achieve the set goals of the organization (Biswas, 2014). The benefits should be higher for the software developers than those of the customer care specialists, and the marketing specialists. The software developers may earn $ 20, 000 in commission with a maximum bonus of 30% due to their level and contributions to the growth of the company’s products portfolio. The other specialists may receive a bonus of between 15% and 25%.


Justification. Health is a critical concern for many employees. Majority of the excellent employees are willing to compromise on the base pay if they get a good health insurance plan (Pianko & Samuels, 2014). As such, YLSS should ensure that it leads the market in this fundamental aspect. An increase in installment payments by the company attracts top talent and guarantees retention. The group insurance offers a sense of security to the employees which increase their attachment and loyalty to the company. On the other hand, the introduction of performance bonuses is essential in motivating the employees to achieve the set goals (Biswas, 2014). This is crucial for the young company as it establishes its market share.


Intangible benefits offer an opportunity for YLSS to outsmart the competitors. The following benefits are crucial in ensuring a healthy working environment for employees;


Most employees need recognition and appreciation to motivate them (Martocchio, 2017). Failure to acknowledge the employees' efforts may lead to reduced attachment to the company's affairs which translates to a decline in productivity and profitability of the company. The human resource manager should, therefore, develop a mechanism to reward diligence in the allocated duties, creativity, innovation, and discipline in job-related matters.

Educational Opportunities

YLSS should establish paid courses and certification for the employees. It should allocate $2,500 education benefit award to all employees that have served for more than one year (Kumar, 2012). The management should, however, evaluate the needs and necessity of the courses the employees choose to pursue. The certifications should have a direct benefit to the management and operations of the company (Martocchio, 2017).

Flexible Schedules

The company should introduce flexible schedules to allow the seasoned employees to have a work/life balance. The benefit should be passed to the employees who have met certain conditions such as reaching and surpassing set targets, commitment to work and innovation (Bryant & Allen, 2013). On completion of one year service, the employee should propose a flexible schedule which may include up to 18.5% remote hours of the full-time employee's 40 hours work (Kumar, 2012).


Justification. For any company to grow, it must ensure that it retains their best employees and attract other innovative and self-driven individuals to the company (Pianko & Samuels, 2014). The need for YLSS to have high-quality employees to implement its new software and develop other unique software justifies the recommended adjustments on the benefits.

When the employer recognizes and rewards good deeds from the employees, it develops intrinsic motivation where the employees desire to work is enhanced (Biswas, 2014). This improves the productivity as well as the employees' satisfaction level.

Education benefits, formal training, and mentorship guarantees career development for the employees (Martocchio, 2017). The benefits motivate the employees to work for the company and develop a special attachment to the company. They feel the company's commitment to improving their welfare. As a result, they become loyal to the company and works towards its growth and increased profitability.

Flexible schedules are critical in ensuring maximum productivity during the working hours (Biswas, 2014). To ensure that YLSS is competitive, it should offer the seasoned employee a flexible schedule to match its competitors in the industry. However, the company should enforce discipline to avoid abuse and misuse of the benefit by the employees.


Below is an ideal employee value proposition for YLSS;

YLSS believes in innovation and creativity. The company values the contributions of every employee and rewards them competitively (Among the top 3 in California). The employees are also entitled to unique benefits including health insurance, educational opportunities, annual leave days and full-vesting after one year. The company fosters unity and provide the best working environment (employees can unwind by having a warm shower, swimming or having coffee within a well-equipped company kitchen)


YLSS believes in innovation and creativity. The company values the contributions of every employee and rewards them competitively (Among the top 3 in California). The employees are also entitled to unique benefits including health insurance, educational opportunities, annual leave days and full-vesting after one year. The company fosters unity and provide the best working environment (employees can unwind by having a warm shower, swimming or having coffee within a well-equipped company kitchen)

We are currently recruiting a creative, innovative and self-driven software developer proficient in HTML, Javascript, and CSS to assist in the development of unique software.

Skills Required

  • High proficiency in web technologies including HTML, iOS, C++, Javascript, and CSS
  • Experience in creating and analyzing SQL Queries
  • Hands-on experience in software troubleshooting a plus


  • Bachelor's Degree in Computer Science (Master's Degree a plus)
  • Excellent programming skill set
  • At least two years' experience in software development
  • Critical and analytical thinking
  • Strong attention to detail

YLSS is an equal employer. Canvassing will lead to automatic disqualification.


Biswas, B. D. (2014). Employee Benefits Design and Compensation (Collection). FT Press.

Bryant, P. C., & Allen, D. G. (2013). Compensation, Benefits and Employee Turnover. SAGE Journals, 34-56.

Kumar, R. (2012). Human Resource Management: Strategic Analysis Text and Cases. I. K. International Pvt Ltd.

Martocchio, J. J. (2017). Employee Benefits. McGraw-Hill Education.

Pianko, H., & Samuels, D. G. (2014). Compensation and Benefits. Oxford University Press.

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