Presented to: Management
Assessment Code: RWT1
Table of Contents
Performance Based Pay5
This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.
Performance based pay is a widely popular approach to compensation where the employers pays the employee based on their job performance. This gives the employees control of how much they make and inspires them to do their best work on a daily basis to maximize their own income. With high productivity and quality performance employers are able to become more competitive and increase profit.
Salary is an easy and constant way of paying the employees of this company. This is a set wage that employees will earn based on their job description. This wage will not change based on their merit or seniority. The stability of this compensation system appeals to employees as they always are aware of how income they will receive. But it also has very little room for growth and opportunity for the employees.
The last form of compensation we can consider for our employees as a company is longevity pay. This is compensation based on the employee's seniority, length of service, or tenure. This can be in the form of annual bonuses on their employment anniversary date, or monthly amounts added to their checks. This provides the employees with motivation to continuing their career and employment with the company.
My final recommendation for the company is to develop our own performance based pay system for our employees. This will create highly productive and motivated employees eager to perform their job duties to the best of their abilities to maximize their own personal income. This in turn will create more profitability for our company. Also, creating goals for our employees will create awareness of our company's goal as a whole organization and will create a more united workforce as we all work together for the same goal. A company with driven employees producing quality work can only be successful.
I, Jamie Yocom, a Human Resource Assistant have been given the task of researching different compensation strategies for our company. In this report I will be reporting to the Human Resource Director my research findings on 3 different compensation methods: Salary, Performance-Based Pay, and Longevity Pay. I will compare and contrast these methods in order for management to determine which method is most appropriate for us to adopt for our 120 employees.
Since compensation is the biggest benefit we provide to our employees, this topic deserves thorough research and thought as we examine and promote a new way of rewarding our employees for their hard work and dedication to the quality and performance we expect from each and every one of them. After reading this report, management will have a greater understanding of each of these 3 methods and will be able to begin the process of deciding which one will be implemented in the near future.
I will introduce using the compensation strategy of salary, which is a set amount an employee receives annually for the work they do no matter the quality of their work, or the hours they put in. Performance Based Pay is another method we can use in which employees are paid based on the quality of their performance and production. Longevity Pay is the final method I will propose of our use, it involves wage adjustments for each employee based...