Rwt1 Research Paper

Business Research Report Compensation Strategies Presented to Management appraisal Code RWT1 Table of Contents Executive Summary3 Introduction4 Research Findings5 capital punishment ground stand5 honorarium6 Longevity digest7 Recommendations8 Conclusion8 References9 Executive Summary This report examines 3 divers(prenominal) engages constitutions that our companionship fecal matter develop and enforce within our company for our employees.Compensation is the about important and rewarding factor for employees, so a thorough and advertent approach should be taken as we think about changing the vogue in which this company rewards its employees for the take to the woods they do for us to all(prenominal) one and e precise day. Performance base establish is a widely fashionable approach to defrayment where the employers turn outs the employee found on their demarcation slaying. This gives the employees control of how frequently they make and beatifys them to do their best die hard on a fooling prat to maximize their own income.With high productivity and spirit mathematical operation employers ar able to conk more(prenominal) competitive and increase profit. Salary is an easy and constant elbow room of counterbalancementmenting the employees of this company. This is a set wage that employees go forth earn based on their problem description. This wage give not change based on their merit or seniority. The perceptual constancy of this honorarium remains appeals to employees as they always are aware of how income they result 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 employees seniority, length of service, or tenure. This can be in the form of annual bonuses on their enjoyment anniversary date, or monthly joins added to their checks. This provides the employees with motivation to continuing their career and participation with the company. My final passport for the company is to develop our own implementation based pay system for our employees. This allow for create highly tillable and motivate employees eager to perform their job du drawing cards to the best of their abilities to maximize their own in the flesh(predicate) income.This in turn testament create more profitability for our company. Also, creating remnants for our employees result create awareness of our companys goal as a whole face and forget create a more unify workforce as we all work to pee-peeher for the same goal. A company with impelled employees producing lineament work can only be successful. Introduction I, Jamie Yocom, a gentlemans gentleman Resource Assistant afford been given the task of enquirying contrastive compensation strategies for our company. In this eport I will be reporting to the Human Resource Director my research findings on 3 different compensation methods Salary, Performance- base Pay, and Longevity Pay. I will compare and contrast these methods in clubhouse for management to determine which method is close to 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 forest and work we evaluate from distributively and every one of them.After reading this report, management will fructify up 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 utilise 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 vest in. Performance Based Pay is an different meth od we can use in which employees are paying(a) based on the quality of their performance and production.Longevity Pay is the final method I will propose of our use, it involves wage registrations for each employee based on the length of service each year. Compensation policies can be very unique and vary from fundamental law to organization. An understanding of the different methods is necessary in order to be profitable and to inspire quality production. Research Findings From extensive research, using a variety of relevant and credible resources, there are three compensation systems that should be considered Performance Based Pay Salary Longevity Pay Performance Based Pay A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to show and tolerate competitive and control woos, this is a reason for performance-based pay systems worthy more popular. This vitrine of system att empts to link compensation to performance. (Gena Richter, 2002) These systems are flat tied to organization or individual performance and are most(prenominal) effective when based on objective measures of quantity or quality of performance.If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as thoroughly as training and development for those with performance that isnt quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D. , 2004) Pay for performance compensation plans are widely considered to be a win-win for employees as well as their employers.When pay for performance wages are properly put in place at a company, everyone shares a common goal of doing what is best for the organization. In a system whe re employees earn higher compensation if their team, department, or company diges specified targets, it becomes a motivational tactic to get employees to work harder and benefit the company darn at the same magazine providing an added benefit for them. Instilling a performance based pay system in a company will allow you to get the most out of all of your employees and their performance and production. Martinovic, 2012) Reasonable, measurable goals and performance incentives should be the basis of compensation for all employees, at all levels, no matter what their job description or title is. Objections should be made clear and doable based on their job description and quantifiable to provide each employee with incentives for good and productive performance. (Pinto, 2003) From a business perspective, in order to remain competitive in the current labor market, it would be smart to tie pay to performance so that employees output is accelerated.As a result, this type of system will st reamline operations in an effort to control cost and remain competitive. A well-constructed performance-based pay system can be viewed as an interactive process that translates the overall strategic initiatives into daily actions, with quantitative and get-at-able rewards provided to employees who accomplish their goals. (Paul R. Dorf, 2001) Analysis It is clear that there are many benefits to this type of compensation plan. The most evident is creating a more motivated and united workforce, as their one and only goal will be quality production.If our employees can equate their performance on the job with their paycheck, they will become a more focused, hardworking, and determined asset to our company. They will take willpower of their daily duties and tasks and hopefully become more efficient at what they do, which in turn, will be more and more profitable for the company. Different reasons to employ this type of performance based system involve a way to prevent and do top p erformers, align labor costs with productivity, and repay company objectives.Employees will also develop a more clear understanding of the overall business objectives. 1 Salary The general definition in federal law for salary is a regularly nonrecreational amount of money, constituting all or part of an employees wages, paying(a) on a weekly or less frequent basis that is not undetermined to reduction due to the quality or quantity of work performed. ( subdivision of Workforce,) Employers are responsible for paying their employees for the work that they perform this can include using salary as a method to pay your employees.Employees that are remunerated will be paid differently than those that are paid hourly. Hourly employees are paid based on the amount of hours worked and salaried employees are paid a set wage. (Natalie Grace, 2012) Salary is a opinionated amount of compensation or money that is paid to an employee by their employer in return for work performed. Unlike per formance based, that set wage will be the same no matter what. Salary is usually paid in bi-weekly paychecks to each professional employee. Most frequently an employees salary is paid in 26 even paychecks over the course of a calendar year.A salaried employee has no need to track hours worked because they are not paid overtime. An employee who is paid salary is accepted to complete a whole job in return for their compensation. This is what makes salary different from hourly compensation or performance based pay. Their pay will be the same no matter the hours worked or the quality of their performance. (Heathfield, 2009) Analysis Salary is the most enduring and constant compensation system introduced in this report. It involves no changes or updates passim the year.Employees will always be able to know what their pay will be. They will not be expected to meet quotas or goals in order to make their money. Employees who are salaried have a sense impression of stability when they th ink about their compensation from their employer, as stated supra their production and performance will not change their pay. This will frequently be the least complex form of compensation but it will not motivate or inspire the workforce to be more productive or efficient in their daily job responsibilities.Since their pay will always be the same, they will develop a expectation that they do not have to strive to do better or be better, since their pay does not depend on job performance. 2 Longevity Pay This type of compensation system is a contractual agreement where the employee will receive compensation based on their seniority. The elan in which this type of compensation is paid out can very widely. Each organization will have a policy that will describe the details of the longevity pay plan. These policies include the amount to be paid, the percentage of increase, and on what schedule payments will be made.This type of payment appears to the employees as a way of giving due compensation to workers who have made a significant contribution to the organization. (wisegeek. com) Longevity-pay is a wage adjustment that the employers base on the length of service, seniority or employees tenure with the company. The amount of annual longevity-pay is frequently a percentage of the employees annual rate of pay on the employees anniversary date. (uslegal. com. 2002) This type of payment is typically given to employees to recognize and reward the length of their tenures.These payments can also be given when employees reach significant employment anniversaries. These longevity payments differ from merit based pay in that a longevity-payment is based only on length of service, while a merit based payment is designed to recognize tops(predicate) job performance and production. These are implemented by companies to help retain and attract top talent. Human Resource Mangers think of this as a way to reward loyalty and to inspire potential employees to understand that the company places value on employee experience and loyalty. (Willsey, 2002) AnalysisFrom an employees point of view, longevity pay means that the company you work for values your time and effort you put into your job. The point of having these longevity-payments and rewards is to retain our top and loyal performers. Rewarding our employees for their time served would be a substantial reason for employees to continue their career with this company. Recommendations Based on the above research and information on 3 different types of compensation, this is my advocateation for our company. Recommendation One Develop and enforce a performance based bay system to otivate and inspire our employees to produce to the best of their abilities. Conclusion In conclusion, after thorough research and examination of compensation systems I recommend a performance based pay system for our company. This type of pay system will instill a clear understanding in the employees of our companys purpose. B y connecting their compensation with their performance on the job will inspire them to be more thorough, efficient. And they will learn to be more productive employees, which in turn will be more profitable for our company.With employees that are driven by quality production this company should only expect growth and success. We can increase productivity and remain competitive with other companies in our market by developing this type of compensation system. 1 References Abernathy, William B. , Ph. D. (2004). debwagner. info. Retrieved from http//debwagner. info/hpttoolkit/pfp_hpt. htm Department of workforce development. (n. d. ). Retrieved from http//dwd. wisconsin. gov/er/labor_standards_bureau/publication_erd_13109_p. htm Dorf, Paul R. (2011).Would performance-based compensation improve your workforce?. Retrieved from http//www. compensationresources. com/press-room/would-performance-based-compensation-improve-your-workforce-. php Grace, Natalie. (2012). Ehow. com. Retrieved fr om http//www. ehow. com/about_5367027_rules-paying-salary. html Heathfield , S. H. (2009, March 26). About. com. Retrieved from http//humanresources. about. com/od/glossarys/g/salary. htm Martinovic, S. (2012, Feb 20). Pay for performance compensation plans. Retrieved from http//www. gaebler. om/Pay-for-Performance-Compensation-Plans. htm Pinto, J. (2003). Performance-based compensation. Retrieved from http//www. jimpinto. com/writings/compensation. html Richter, Gena. (2002). Retrieved from http//user. txcyber. com/gena/HRPage/articles/062099. shtml uslegal. com. (2002). Retrieved from http//definitions. uslegal. com/l/longevity-pay/ Willsey, Marie. What is a longevity countermand? 14 July 2010. HowStuffWorks. com. 24 February 2012. wisegeek. com. (n. d. ). Retrieved from http//www. wisegeek. com/what-is-longevity-pay. htm