Company Functions and Operations

Discuss about the Compensation System Review for Kruger Products.

Krurger Products is Canada’s leading manufacturer of tissue products for industrial, commercial use and household. It is a leader in North America in paperboard recycling and and paper also operates in other countries these are Newfoundland, Ontario, British Columbia and the United States. It was founded in 1904 by the Joseph Kruger in Montreal (Kruger Products, 2017a). The company’s work is divided into two major parts which are Industrial products and Consumer products. The company supply its mills with containerboard and recycled paper for the production of recycled paper products and recycled stock. It also produces boxes for large electrical appliances. Now, white cloud is recognised the best bathroom tissue in the United States which is the main product of Krurger products. They change the lifestyle of the Canadian women and their families affected by cancer. They financially support the breast cancer research, education and awareness activities (Kruger Products, 2017b).

In this report, company functions, size, type of employees, location and the type of benefits providede by the company to their employees will be discussed. Internal and external equity is also analysed. 

Skill and dedication of the employees makes the company one of the leading companies in Canada. They offer paper towels, bathroom tissue, facial tissue, paper napkins, hand care wipers and dispensing system across North America. They provide the high quality and cost-effective products which are ecologically sound (Kruger Products, 2017c). They believe on Courage, dedication, excellence, Integrity and teamwork. Without compromising product protection they work on minimize the packaging. They produce products by using certified fibre that has been verified by the Forest Stewardship Council. They provide environmental friendly products which has a green seal. They focus on reducing the greenhouse gas emissions. Krurger Productions perform the internal and external functions. Krurger production manufacture the tissue with the new technology or improving services or products. New product designed is more crucial factor in the survival of company. Company advertises its product by the help of media or posters and banners. Its manufacturing locations are aligned with natural resources and located in population centres that show 60% of U.S. consumers and 90% of  Canadian consumer (Kruger Products, 2017d). Its headquaters in Mississauga, Ontario located across North America. Krurger Products has grabbed the 31.5% of the total facial tissue market in Canada (Statista, 2016). It is the only tissue product company which operates in Western Canada. They continuously exceed their consumer and customer expectation. The company operates through three segments which is consumer, away from home and other. It provides bathroom and facial tissues under the embassy and esteem brands to wholesale distribution serving. Company eight manufacturing plants, one-third of Canada’s total tissue manufacture by the Kruger products. Apart from this, it has 38 renewable energy power plants and also 19 manufacturing or production operations. Krurger products is selected in Toronto’s top employers. The reason behind is that they invest in the education of children of employees and also host internal focus groups to understand desire of millennial employees. Kruger employees are diversified in  their operations which maintains a long-term outlook and openness for new ideas and innovation. The company have 10,500 employees in the company. Krurger products head office is located in Ottawa, and Offices are located in Canada, Mexico, Montreal, United States, Nova Scotia and Toronota. Power plants of the company are established in Quebec city, Detroit, Montreal and Portland.

Employee Compensation and Benefits

Comparison of positions within the business to ensure fair pay is called internal equity. In this, if two person perform the same task then they earn same wages. Krurger Products pays differently according to the post of the employees (Terera, & Ngirande, 2014). The impact of rewards on employee retention and job satisfaction.  Kruger pays the same salary to employees who perform the same task. Kruger pays equally even the job title of the employees is different but the performance of the task is same. Similar tasks are important at the time of setting employee wages (Ou, & Haynes, 2006). At the time of setting salary, education and experience of the employee is also consider. Kruger also consider the education and experience of the employees at the time of hiring. Kruger set employees salary by divide them in three categories which is higher level, middle level and lower level. Lower level of employees perform same task and earn same salary but the salary of higher and middle level are different or high as compared to the lower level of employee. Middle or higher level of employees have different salary according to their position and task. As per there positions or tasks, Kruger set pay scale of their employees. By adopting a straight and honest payment system, the company selected as Toronto’s top employers (Kruger Products L.P., 2018). Kruger products pay hourly approximately $17.79 per hour for line operator to $40.08 per hour for Journeyman Electrician. The company give opportunities to all employees to get bonuses. Bonuses based on the employee performance or the traditional end variety which create the competencies for employee. Supervisor or director set a target for their employee at the beginning of the year. Employee get the reward after met their targets, it is not counted in the salary (Baumgarth, & Schmidt, 2010). Company give the bonus to the employees as a thank you for work done during the year. 

Compensation is an extra benefit which is given by the company to an employee in exchange for the performance which they do for the business. It is biggest expense for every   company because it is more than the employee’s noraml paid wages. Kruger Products determines an employees compensation as per their performance (Hansen, 2007). Kruger products make the budget before paying the compensation to the employees for their services. The company has appointed a person in charge for overseeing the entire process of compensation. It has a department which is responsible for paying compensation to the employees with an accurate amount. It means they are in charge of the budget and have to make sure that employee get the compensation with an accurate amount instead of relying on HR (Bryant, & Allen, 2013). Apart from all these, before paying the compensation management of the Kruger Product analyses the job title of the employee. Worth of the job duties and position is also analysed by the company before paying the money to the employee. The company collects the data through the survey within the industry. Compensation given by the company after completing the task which is assigned by the supervisor or director. Therefore, employee will be required to complete the task. After the completion of the task, company decides the compensation for each position by research on other tissue companies in the market and determines employees salary as well. They also determine the basic salary of the employee by comparing with the other company. Kruger product have different levels of employees, it has new hires, executives, management, as well. They have a pay range according to the levels. Kruger decides the amount of compensation after research or analysis of all the data. At the time of new hiring company analysed the compensation amount in the market. Kruger Product appointed the someone as the market researcher who research the market rates and conditions. Kimberly-Clark Inc. is the competitor of Kruger products in the tissue market (Kimberly-clark, 2018). Kruger attracts the employees of the competitor company. Kruger appoints the employee of the competitive company who resigned that company which is easy way to know the compensation scheme of the opposite company. Kruger appointed an in charge for the compensation amount. Incharge gives the compensation amount without any fault and according to the policies. Kruger pays the compensation amount to the employees from the fund which is established for the compensation money. From these processes, company ensures that the compensation amount is at competitive rates within the marketplace. 

Internal and External Equity

Kruger Products gives many benefits to the employees excluding salary. It gives the compensation after completing targets. It also gives an opportunity to all the employees to earn incentives and rewards by performing excellent work. Bonuses are also provided by the company on the basis of performance and traditional year ending. Kruger Products believes that a happy empolyees is a lifelong asset (The Globe and Mail, 2018). Therefore, a wide range of benefits are given by the company to the employees for their life. The company takes care of the employees health by group insurance or life insurance. Employees develop with the development of the company, they provide training through ongoing in company training programs or by developing activities. Kruger Products also think about the families of the employees. They invest in the education or offering academic scholarship of their children. They recently extended their support for employees who are new fathers or mothers by providing them maternity leave up to 17 weeks and parental leave to 5 weeks. The company provides the benefits to the employees for long-life even after the retirement. After the retirement of the employees, company offers pension plan as well as health benefits which extends with no limits. They believe in giving the employees the space to grow within a dynamic, stimulating environment for nurturing their development, appreciate their involvement and enriching their professional lives. Apart from all these, employees get the allowances or work benefits. Employees receive paid vacations of 3 weeks o specially new employees and they get the individual reviews in every 6 months. It has good work environment like flexible work hours, health benefits and if any employee work after the office hour then they earn extra incentives (Terera, & Ngirande, 2014). Company works like a family, and they encourage teamwork and supporting employee initiative which contributes in their success.

Conclusion

In this report, Kruger Products compensation or benefits to the employee was analysed. Kruger Products is Canada’s tissue manufacturing company. It was founded in 1904 by the Joseph. The company sets the salary by dividing the staff into three levels which are higher, middle and lower level and also on the basis of their education and experience. Compensation is also provided by the company to their employees excluding salary. It is the biggest expense for the company. Kruger Products has appointed an in charge for paying the compensation with the accurate amount by analysing the market and competitor’s compensation amount. There are various benefits which are provided by the company. Not only for employees, they also provide the benefits to the employees families. Group insurance, investment in the education of their children. They also provide the trainee through training programmes. They believe in employees happinees that is why it provides the benefits after the retirement by registered pension plans.

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