Rwt1 Wgu Business Report
Business Research Report
Evaluating Compensation Strategies
Assessment Code: RWT1
Table of Contents
Executive Summary……………………………………………………………………… 3
Introduction……………………………………………………………………………… 4
Research Findings……………………………………………………………………….. 4 Finding Number 1……………………………………………………………….. 4 Finding Number 2……………………………………………………………….. 5 Finding Number 3……………………………………………………………….. 6
Recommendations………………………………………………………………………. 7
Conclusion………………………………………………………………………………. 7 References………………………………………………………………………. 9
Executive Summary
Within this business report, I have analyzed three different employee compensation strategies that I feel could be well executed within our organization. Employee compensation is key to recognizing and rewarding our employees for their performance and contributions to the overall company’s success. Because it is a signficiant factor, we need to carefully evaluate the three options in my report.
Compensating our employees using the base salary approach is a well accepted strategy. This approach provides for a set salary that employees will earn based on their job coding. Factors such as merit or tenure will have no impact on someone’s base salary. This is a stable compensation strategy leveraged within similar organizations and an approach most employees feel comfortable with as it’s very cut and dry. The downside of using this approach is that there is little room for growth and salary increases and which can be de-motivating.
Performance-based compensation is quite a popular and also another well accepted strategy. In this strategy, employees have direct control over how much they are paid. Having control really helps to motivate employees to work harder and achieve new financial goals and maximize their own income. Having an organization that is a high performing organization helps to make an organization more competitive. The downside of this approach is that you create a more competitive environment
Evaluating Compensation Strategies
Assessment Code: RWT1
Table of Contents
Executive Summary……………………………………………………………………… 3
Introduction……………………………………………………………………………… 4
Research Findings……………………………………………………………………….. 4 Finding Number 1……………………………………………………………….. 4 Finding Number 2……………………………………………………………….. 5 Finding Number 3……………………………………………………………….. 6
Recommendations………………………………………………………………………. 7
Conclusion………………………………………………………………………………. 7 References………………………………………………………………………. 9
Executive Summary
Within this business report, I have analyzed three different employee compensation strategies that I feel could be well executed within our organization. Employee compensation is key to recognizing and rewarding our employees for their performance and contributions to the overall company’s success. Because it is a signficiant factor, we need to carefully evaluate the three options in my report.
Compensating our employees using the base salary approach is a well accepted strategy. This approach provides for a set salary that employees will earn based on their job coding. Factors such as merit or tenure will have no impact on someone’s base salary. This is a stable compensation strategy leveraged within similar organizations and an approach most employees feel comfortable with as it’s very cut and dry. The downside of using this approach is that there is little room for growth and salary increases and which can be de-motivating.
Performance-based compensation is quite a popular and also another well accepted strategy. In this strategy, employees have direct control over how much they are paid. Having control really helps to motivate employees to work harder and achieve new financial goals and maximize their own income. Having an organization that is a high performing organization helps to make an organization more competitive. The downside of this approach is that you create a more competitive environment
References: Agency Management Roundtable. (2012). Salary increases should be tied to profitability not longevity Dorf, P. (2011). Would Performance-Based Compensation Improve Your Workforce?. Retrieved from: http://www.compensationresources.com/press-room/would-performance-based-compensation-improve-your-workforce-.php Entrepreneur Media, Inc. (2013). Compensation. Retrieved from: http://www.entrepreneur.com/encyclopedia/compensation# Grace, N. (2012). What Are the Rules for Paying Salary?. Retrieved from: http://www.ehow.com/about_5367027_rules-paying-salary.html Ojimba, E. (2004). Salary Basics – Developing a Strong Compensation Philosophy. Retrieved from: http://www.salary.com/Small-Business-Advice/advice.asp?part=par410 Richter, G. (2002). Compensation and Benefits Performance-Based Compensation. Retrieved from: http://user.txcyber.com/~gena/HRPage/articles/062099.shtml