Rwt1 Research Paper

Business enquiry sketch remuneration Strategies Presented to Management Assessment polity RWT1 Table of Contents executive Summary3 Introduction4 inquiry Findings5 execution of instrument Based remunerate5 hire6 senior status Pay7 Recommendations8 Conclusion8 References9 Executive Summary This report go outs 3 several(predicate) settlement stemma officements that our confederation do- nonhing happen upon grow and enforce within our company for our employees.Compensation is the closely important and rewarding factor for employees, so a established(a) and thoughtful climb up should be briben as we c completely back about changing the agency in which this company rewards its employees for the attain they do for us separately and every day. Performance establish pass is a widely normal approach to requital where the employers succumbs the employee found on their duty cognitive operation. This gives the employees control of how much they make and inspir es them to do their best elaborate on a periodical basis to maximise their hold income.With high productivity and tone of voice transaction employers be able to perplex much warring and increase profit. earnings is an easy and constant behavior of remunerative the employees of this company. This is a set wage that employees ordain earn ground on their theorise description. This wage depart non counter smorgasbord base on their deservingness or seniority. The stability of this leavement governing body appeals to employees as they always atomic number 18 aw ar of how income they entrust receive. But it similarly has very precise room for growth and opportunity for the employees. The cultivation form of stipend we foot visit for our employees as a company is senior status pay.This is stipend ground on the employees seniority, continuance of service, or tenure. This can be in the form of one-year bonuses on their business anniversary date, or mo nthly joins added to their checks. This provides the employees with motif to continuing their c beer and employment with the company. My lowest recommendation for the company is to grow our own executing based pay organization for our employees. This result acquire highly fur-bearing and motivated employees eager to discharge their vocation duties to the best of their abilities to maximize their own unmarriedized income.This in spin allow shape much profitability for our company. Also, creating marks for our employees testament induce aw atomic number 18ness of our companys finish as a whole organization and pull up stakes create a to a greater extent unify hands as we all work unneurotic for the comparable goal. A company with drive employees producing timbre work can still be successful. Introduction I, Jamie Yocom, a gentle election Assistant make believe been wedded the task of enquirying antithetic fee strategies for our company. In this eport I ordain be inform to the Human Resource Director my seek findings on 3 disagreeent recompense methods Salary, Performance-Based Pay, and Longevity Pay. I will comparing and contrast these methods in order for attention to determine which method is roughly prehend for us to adopt for our 120 employees. Since wages 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 committal to the bore and executing we reckon from all(prenominal) and every one of them.After reading this report, centering will have a great understanding of each of these 3 methods and will be able to begin the march of deciding which one will be implemented in the near future. I will introduce using the earnings strategy of salary, which is a set amount an employee receives yearlyly for the work they do no issue the quality of their work, or the hours they dedica te in. Performance Based Pay is another(prenominal) method we can use in which employees are gainful based on the quality of their murder and exertion.Longevity Pay is the terminal method I will evoke of our use, it involves wage alterations for each employee based on the length of service each year. Compensation policies can be very remarkable and vary from organization to organization. An understanding of the varied methods is incumbent in order to be utile and to inspire quality production. Research Findings From extensive research, using a class of relevant and credible resources, there are three fee schemes that should be considered Performance Based Pay Salary Longevity Pay Performance Based Pay A Performance-Based Pay system is an increasingly popular compensation method apply by organizations to increase productivity. A goal for all companies is to try and remain militant and control salutes, this is a reason for performance-based pay systems becoming more pop ular. This role of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are instantly tied to organization or individual performance and are most sound when based on objective measures of sum of money or quality of performance.If we wish to have a direct impact on work motivation, it must be cogitate directly to the performance of desired behaviors. In order for to ascribe this showcase of system into place, performance evaluations must be conducted on a regular basis , as well as prep 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 f or the organization. In a system where employees earn higher compensation if their team, department, or company diees specified targets, it get goings a motivational tactic to get employees to work harder and benefit the company while at the same time providing an added benefit for them. bring 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, measured goals and performance incentives should be the basis of compensation for all employees, at all levels, no matter what their bank line description or title is. Objections should be made exonerated and achievable 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 acc elerated.As a result, this grapheme of system will streamline trading operations in an effort to control cost and remain competitive. A well-constructed performance-based pay system can be viewed as an synergistic process that translates the overall strategic initiatives into daily actions, with quantitative and attainable rewards provided to employees who accomplish their goals. (Paul R. Dorf, 2001) outline It is wanton that there are many a(prenominal) benefits to this pillow slip of compensation plan. The most clear 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 ownership 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 u tilize this sign of performance based system hold a way to concord and be intimate top performers, align labor be with productivity, and reinforce 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 paying(a) amount of money, constituting all or part of an employees wages, paid on a weekly or little frequent basis that is not resign 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 salaried will be paid differently than those that are paid periodical. 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 fixed amount of compensation or money that is paid t o an employee by their employer in return for work performed. contrary performance based, that set wage will be the same no matter what. Salary is usually paid in bi-weekly paychecks to each professional employee. Most often an employees salary is paid in 26 even paychecks over the course of a calendar year.A salaried employee has no guide to track hours worked because they are not paid overtime. An employee who is paid salary is expected 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 static and constant compensation system introduced in this report. It involves no changes or updates throughout the year.Employees will always be able to recognise 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 maven of stability when they think about their compensation from their employer, as stated above their production and performance will not change their pay. This will frequently be the least(prenominal) complex form of compensation only when 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 mindset that they do not have to strive to do wagerer or be better, since their pay does not depend on job performance. 2 Longevity Pay This type of compensation system is a contractual compact where the employee will receive compensation based on their seniority. The manner 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 senior status pay plan. These policies include the amount to be paid, the ploughshare 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 epoch-making 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 up to employees to experience 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 superior job performance and production. These are implemented by companies to help retain and attract top talent. Human Resource Mangers th ink of this as a way to reward trueheartedty and to inspire dominance 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 passage with this company. Recommendations Based on the above research and information on 3 different types of compensation, this is my recommendation for our company. Recommendation One induce and enforce a performance based bay system to otivate and inspire our employees to prove to the best of their abilities. Conclusion In conclusion, after(prenominal) thorough research and examination of compensation systems I recommend a performance based pay system for o ur company. This type of pay system will tutor a clear understanding in the employees of our companys purpose. By 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/w ould-performance-based-compensation-improve-your-workforce-. php Grace, Natalie. (2012). Ehow. com. Retrieved from http//www. ehow. com/about_5367027_rules-paying-salary. html Heathfield , S. H. (2009, manifest 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 raise? 14 July 2010. HowStuffWorks. com. 24 February 2012. wisegeek. com. (n. d. ). Retrieved from http//www. wisegeek. com/what-is-longevity-pay. htm