Holland Enterprises has embarked on a new strategic direction, aimed at attracting and retaining the most talented employees and reducing turnover. The human resources department has developed a new compensation plan. In the compensation and benefits system plan proposal, I will explain a new compensation plan for Holland Enterprises, I will also explain the components of the compensation and benefits system plan in order to attract and motivate employees to be productive. For the compensation and benefits system plan to be operational, the package should include a level of compensation necessary to meet basic needs, equity with the external labor market, equity within the organization (Henderson, 2006). First, Ashley Nuese, director of marketing and sales services at Chicago-based Human Resources. Solutions states, “Organizations should focus on communicating how their philosophies were developed and continually benchmark their pay satisfaction scores to remain competitive” (Henneman, 2011, para. 1). Holland Enterprises' compensation philosophy is: We believe our benefits and recognition system are vital to collaborative opportunities, improved productivity and recognition of contributions to business success. Holland Enterprise's compensation philosophy has three main objectives. These objectives are: 1) Provide a competitive compensation program; create a diverse workforce.2) Recognize and reward individual and team achievement, contribution and excellence;3) Provide a non-discriminatory, merit-based compensation program. To achieve these goals, Holland Enterprise will provide a compensation program that establishes and maintains competitive salary levels within… middle of paper… and increases job performance, as well as boosting employee morale. Increasing the compensation and benefits system will allow Holland Enterprise to achieve its current goals. References Henderson, R. I. (2006). Compensation Management in a Knowledge-Based World, 10th Edition. Pearson Learning Solutions). . Retrieved from http://online.vitalsource.com/#/books/0558582451/Henneman, T. (2011, March 2011). Wage 'philosophy' could push workers to stay [magazine]. Workforce management. Retrieved from http://www.workforce.com/archive/feature/benefits-compensation/pay-philosophy-could-prompt-workers-stay/index.php Correct relationship between base salary and bonus. (2007). Retrieved from http://hrguide.applezoom.com/2007/09/right-ratio-between-base-salary-and-bonus/US Bureau of Labor Statistics. (2011). http://www.bls.gov/oes/current/distribution_table.htm