Business Research Report

Compensation Strategies

Presented to: Management

Assessment Code: RWT1

Table of Contents
Executive Summary 3

Introduction 4

Research Findings 5

Performance Based Pay 5

Salary 6

Longevity Pay 7

Recommendations 8

Conclusion 8

References 9

Executive Summary

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

Performance …show more content…

In a system where employees earn higher compensation if their team, department, or company reaches specified targets, it becomes a motivational tactic to get employees to work harder and benefit the company while at the same time 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 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 accelerated. As a result, this type of system will streamline 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 attainable rewards provided to employees who accomplish their goals.” (Paul R. Dorf, 2001)