Compensation Strategies for 2014
Assessment Code: RWT1
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Date: 9/15/13
Table of Contents
Executive Summary
Introduction
Research Findings
Salaried/Hourly Compensation
Commission/Productivity-Based Compensation
Longevity Compensation
Recommendations 6
Conclusion 7
References 8
Executive Summary
This report reviews three different compensation strategies PepsiCo can develop and implement within all of our PepsiCo. Brands and businesses for our employees. Compensation is one of the most important and rewarding factors for our employees based on our organizational health survey conducted in 2011, so a thoughtful and thorough approach should be taken as we think about changing the way in which our companies reward our employees for the work they perform on a daily basis.
Salary and hourly compensations are easy and constant ways of paying the employees of our companies. Salary and hourly compensation can be a set wages employees will earn based on their job description. This wage will not change based on seniority or merit. The stability of this type of compensation system is appealing to employees as they are aware of how much income they will receive on a regular basis. Hourly based pay has very little room for opportunity of growth for the employees.
Commission/productivity based pay also known as performance based pay is a relatively common and popular approach to compensation where the employee is paid by the employer based on their job performance; this inspires them to do their best work on a daily basis and gives the employees control of how much they make to maximize their own income. With quality performance and high productivity, employers are able to increase profit and become more competitive.
Longevity Pay is the last recommendation of compensation we as a company can consider for our employees. Longevity Pay is compensation based on the employee 's length of service,
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