February 10, 2013
Table of Contents
Recommended Compensation Plan Objectives3
Strategy for Internal Alignment4
Picture of Internal Structure12
Rationale/Evaluation of Recommendations22
FastCat's mission is to exceed customer's expectations of value, dependability and reliability by focusing on innovation and teamwork; to help our customers succeed; to support and share with our employees; and to respect and recognize individuals and their performance contributions. The following compensation plan is being proposed to support the mission, as well as its business strategy to expand product offerings to current users; to grow its new customer base to increase revenue; to expand its reach into new geographic markets; and to enhance service contracts and training programs offered to customers.
By aligning the pay structure to fit the organization's conditions and objectives, the compensation plan will to lead to competitive advantage for the organization and a sense of fair treatment for all employees. This plan focuses on the following key compensation objectives: to attract, motivate, reward and retain the best talent
to commit to cost containment through a focus on efficiency to encourage collaboration in order to improve customer satisfaction by meeting customer needs, providing timely delivery, and promoting exemplary customer service to comply with all laws and regulations in regard to pay equity and discrimination on the basis of gender, race, religion or national origin
The compensation plan involves a loosely coupled, egalitarian structure which allows for greater flexibility and cross-training of staff, while promoting teamwork, equal and fair treatment, and cooperation between departments. The point-based structure classifies jobs based on levels of education, experience, innovation, communication, teamwork, problem solving, flexibility and initiative. The assumption is that with fewer levels of hierarchy and smaller pay differentials between similar positions, more egalitarian structures support cooperation and commitment and improve employee performance.
Recommended Compensation Plan Objectives
The proposed compensation plan was formulated with an eye on FastCat's new mission "to exceed customer's expectations of value, dependability and reliability by focusing on innovation and teamwork; to help our customers succeed; to support and share with our employees; and to respect and recognize individuals and their performance contributions". The new plan will provide fair and equitable pay for all employees which will result in a better overall business strategy. The four key compensation objectives are: to attract, motivate, reward and retain the best talent
to support and promote employee innovation and creativity
FastCat's compensation plan consists of a structure that is competitive within the organization and the external market in order to hire the most qualified and experienced applicants. To retain employees, the structure will focus on job re-design, cross training and team building. Promotion is favored within the organization for individuals who are flexible, innovative, and self-motivated. The size of the differentials between the entry level positions and the highest level gives creative, innovative, and imaginative employees encouragement to remain with the organization, increase their experience and training, cooperate with coworkers, and seek greater responsibility. to commit to cost containment through a focus on efficiency
FastCat's compensation plan will pay attention to work flow, specifically between marketing, engineering, and technical support employees. By improving performance, increasing quality, controlling...