Paste your essay in here…Any good compensation plan should be a mixture of a balance between internal equity and external Competitiveness. Direct and indirect compensation or any kind reward program has an effect on the productivity of organization as well as compensation is biggest factor in employee satisfaction and retention. It is employer’s responsibility to ensure that workers are well compensated for their skills and the value they add to worth of company.
1. Will you have a performance pay program and if yes, will it be based on individual, team or organizational performance, or a combination of two or more? What will the plan look like in terms of measures, evaluation process, payouts, and frequency of payouts? What behaviors are you trying to encourage with this program?
a) In Duplox copier Canada ltd., Performance pay will the part of Compensation plan to drive behavior of workers. This performance pay will be based on the individual performance as well as group performance because every individual role is different at workplace and there are numerous teams working in the organization. Individual performance analysis is necessary to design the performance pay plan for individuals. Performance pay will be part of every position. However, technical specialist team will get more of it. Their 30-35% of compensation will directly come from Performance pay.
b) Most of the positions will get performance pay Bi-annually. Only technical specialist team will receive their performance pay at the end of each month based on their work level and how many new customers they bring to the company and how many existing clients are still dealing with the company because of their good and on time services.
c) By paying them Performance pay, I am trying to encourage Organizational Citizenship behavior. It was observed from the case that technical team was not taking special initiative to attract new clients because there morale and motivation was totally low because of not getting enough compensation. This performance pay plan will encourage them to undertake special initiative and attract new customers which will be beneficial to the organization that go beyond simple membership.
2) What will you include in your indirect pay program? Will the benefits be the same for each employee or will they be different? Why or why not? What behaviors are you trying to encourage through your choice of indirect pay?
a) Benefits for all employee will be same either they are at higher position or at lower position.
This strategy will make it easier for compensation officer to distribute benefits among all workers. This approach will definitely give the sense of equality and equity to all workers. They will not feel cheated because everyone will be treated on same level as indirect pay has nothing to do with performance of individuals.
b) This approach of providing same benefits to all employees will encourage the membership behavior and is focused to retain employee. More people will be attracted from the labor pool and they will try to stick with organization if they are getting enough benefits.
c) As I read the whole case of duplox copier Canada ltd, I came to know that company have a highly-skilled and hard-to-replace workforce for which we want a high feeling of membership and therefore low turnover of employee is necessary and indirect compensation plan will help to fulfill this vision.
d) Some other benefits of this indirect compensation plan include:
• All members of duplox copier will experience a peace of mind which leads to increased productivity and satisfaction by being assured that they and their families are protected by company in any miss happening.
• Employees would feel a sense of pride towards employer, if they are satisfied with the coverage they receive.
3) What is your plan for implementing the new compensation system? How will you move employees on to the new plan, how will you communicate the plan to everyone, and how will everyone move through the structure, as they progress in terms of service, performance, and job duties?
a) In my plan, the first focus is on being transparent when communicating compensation plan. There should be no hidden propaganda. We have to inform new workers and we must communicate the pay packages to the current employees. Benchmarks and standards used to determine pay packages must be disclosed to employees. Other elements which can influence their compensation plan including how their base pay is calculated and how it compares to the market rate. Our main focus is on equity and fairness.
b) Apart from transparency, managers must be well-versed on the company’s compensation philosophy and the relevant details of each employee’s compensation plan. They will communicate regularly and effectively with their team, with regular communication they would have the better knowledge of each person’s performance and communication style and, hopefully, a strong foundation of trust to support the conversation. Managers will also be responsible for personalize each message depending on what will appeal most to a particular employee or position. Managers will send a short email to let an employee know they’re doing a good job. They will also arrange quick face-to-face meetings to set small goals and identify areas for improvement. There is no one way to do it, but we will do it on regular basis so employees can become more aware of their own performance and, consequently, be prepared for conversations about compensation.
4) How will you evaluate the effectiveness of the plan, i.e., how will you know it is achieving the desired result?
To evaluate the effectiveness of the plan, we need to make sure that we are collecting information that helps us assess the extent to which the employee behaviors are taking place, whether main compensation goals are being obtained, and, along with this, we must ensure that our compensation strategy is equivalent with the results it is producing. Continuous assessment and amendments in strategy is necessary to make sure that our strategy is up to date and it support our workers and business strategies in the most efficient manner. Before designing any compensation plan, we should keep in mind that these plans help HR’s/Owners to manage employees and effectively run business. To measure the effectiveness of our compensation plan, we should focus on following three factors:
• Recruit: Pay range should provide competitive pay scale that should be appealing to new candidates to join the company. Are we actually able to attract new workers from labor pool? Are they willing to join duplox copier? If the answer to both of questions is yes, then, we are on right path.
• Retain: Performance plans and increments can improve employee performance as well as works as a career development factor in the business. One step is by tracking the performance of employees after new compensation plan is being implemented. Then, compare that record with the previous performance record and it will clearly reveals the effectiveness of our new plan.
• Motivate: After implementing new compensation plan, an informal auditing could be the best way to identify either new plan is motivating the employee or there is any negative impact on them. If our new compensation plan is satisfying these three factors then we can say that we are achieving our desired output otherwise we have to make adjustments in our plan.