Business Research Report
Assessment Code: RWT1
Table of Contents
Executive Summary 3
Research Findings 4
Finding Number 1 4
Finding Number 2 5
Finding Number 3 5
This report provides an analysis and evaluation of three different compensation strategies for potential implementation into our firm. Performance based, skill based, and piece rate pay plans are defined and analyzed. The focus of the topics included in the analysis includes employee retention, recruitment, morale, and productivity
I suggest offering quarterly team based bonuses for the highest amount of quality production over a three month period of time. We could also include tuition reimbursement for employees that chose to pursue training and certifications that are beneficial to our firm. This strategy would provide multiple incentive options, and I believe, would be the best fit for our firm and our employees.
Compensation strategy is important to an organization’s overall success. Having a well thought out and competitive compensation plan can allow a company to attract new talented employees, as well as to retain loyal seasoned team members. As a Human Resources Assistant, I have witnessed both positive and negative effects that compensation can have on an organization’s recruitment, productivity, moral, and retention. It is extremely important that we implement an effective and competitive compensation strategy, which is also financially feasible for our company.
There are a variety of different compensation strategies adopted by various organizations in the business world. The best compensation strategy for any organization would depend on that organization’s goals, its primary focus, and its culture. According to Miller (2012) “To make an incentive plan work, there must be a direct line of sight between employee performance and tangible rewards” (Moving to Variable Pay, paragraph 2). In this report you will find that I have researched the following compensation strategies per the request of the Director of Human Resources of our firm:
• Performance based pay
• Skill based pay
• Flat rate/ Piece rate pay
This report will compare and contrast these three different compensation strategies, apply these strategies to our organization, as well as provide specific recommendations based on my findings.
• After compiling research from many reliable HR sources, I have determined that these three strategies should be considered when looking at compensation for our firm: 1) Performance based pay incentives; 2) Skill based pay; 3) Flat rate/ Piece rate pay.
Performance Based Pay Incentives
There are many different types of performance based pay including bonuses, commissions, gains sharing, and profit sharing. As we are a manufacturing firm with the majority of our employees working on production of goods I have focused my research on personal and team bonuses. Both of these performance based pay options would reward the employees for increasing productivity. Bonuses are a flexible option for a performance based pay strategy. The bonus procedure is set up with guidelines that the firm decides upon. The amount for the bonuses, frequency of their award, and whether they are awarded to a single employee or an entire team, is all determined by the firm. An effective, well received bonus program can offer motivation to employees,...