hrm/531 wk3
helpmepass
SemiFinalWK3TeamPresentationFoxworth.pptxPerformance & Salary Increase Review
HRM531
Learning Team 3
April 1, 2019
Lorinzo Foxworth
(Google, 2019)
Introduction
Base pay increase
Individual based incentive plan
Team incentive plan profit sharing
Final recommendation
(Google, 2019)
The following presentation will outline three different options for employee increases to competitively meet market rate. The company is currently below by 10% and the proposed will bring them inline. At the end of the presentation having outlined the benefits of the three different approaches, a final recommendation to management will be made. (Dressler, 2017)
2
Base Pay Increase
2-5% base pay increase
Increase base pay by position and title
(Google,2019)
Base pay rates vary significantly between professions. In general, professions requiring advanced education and specialized skill sets pay higher base rates than jobs that call for basic skills. In competitive fields, employers often offer attractive base pay rates to recruit highly qualified applicants (“RCA Advisory”, 2019).
3
Team Incentive Plan
Reward Team Members for Exceling in Productivity
Motivation to Achieve Specific Organizational Objectives
Profit Sharing
Cash Bonus
This Photo by Unknown Author is licensed under CC BY-SA
(Good Company, n.d.)
A team incentive plan is offered as a reward to team members to increase productivity, commitment, and as motivation to go above and beyond their responsibilities to excel in reaching the strategic goals set by the organization (Dessler, 2017). The profit-sharing plan contributes a percentage of staff member’s salary into a 401 (k) annually for the next three years (Rowe, 2018). The incentive is offered during periods that the company makes a profit. A monthly and annual cash bonus will be awarded to the salesperson that increases sales the most throughout the company.
4
Individual Incentive Plan
Employee Incentive for Performance
Retention Bonus
Peer-to-Peer Employee Recognition
Student Loan Repayment
Professional Development
This Photo by Unknown Author is licensed under CC BY-NC-ND
This Photo by Unknown Author is licensed under CC BY-SA-NC
(Motivating Employees, n.d.)
The individual incentive plan is based on employee performance within completing their job duties and achieving organizational objectives. Retention bonuses are awarded to long-term employees that will involve an additional week of paid vacation which will be rewarded every five years of employment (Srinivasan, 2019). Peer-to-Peer monthly employee recognition program allows staff members to recognize an employee that went the extra mile. A gift card is received for their accomplishment. Student loan repayment and professional development options are available to workers. Paid volunteer time off is provided to staff for one week annually.
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Individual Merit Increase
2 to 5 % yearly merit increase
Performance based
Merit increases based on a curve by department
Employee ratings that fall below 2% will require additional review and coaching
(Google,2019)
Individual merit increases can be used to recognize an employee's performance, contributions, years of service and the past year's achievements (Dressler, 2019). To bring employees within market rate a yearly individual merit increase ranging from 2 to 5% will be offered based on each employees performance. Department managers will rate their employees based on performance over the last year. Things to factor in will be years of service, skill set, achievements, performance and attendance. If an employee falls below 2% coaching and possibly disciplinary action will be considered.
6
combination of base and incentive pay
A Focus on base pay can lead to high cost in payroll that can lead employees not to want to performance to its fullest
A focus on Incentives may lead to employees to find a new employment with a balance
That is why a combination of base and incentive pay is best for a company to provide a bonus of 4% percent
It’s known that finding the correct way to pay a combination between base and incentive pay. This can lead to a poor way to bring out the best of a employee’s abilities. Focusing on base pay will lead no incentive for any employee to reach its best performance. Providing the focus on incentive pay this will lead employees to find a better employment that can provide better base pay.
“although incentive plans are meant to incent employees to perform, not all plans achieve what they were set out to accomplish. That’s why it is important to analyze the advantages and disadvantages of various incentive plan components to determine the plan that will promote the highest levels of performance while at the same time, encourage ethical behavior. This is especially true for salespeople and managers/executives because they work with customers and are responsible for achieving company earnings targets”
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The Mix Between Base and Incentive pay
Option A: Conservation
3 Percent raise in base pay and 1 percent raise Incentive pay
Option B: Moderate
2 percent raise in base pay and 2 percent raise Incentive pay
Option C: Variable
1 Percent raise in base pay and 3 percent raise Incentive pay
The Following Three options will provide a best way we can determined the different ways we can provide base and incentive pay which should be addressed to each worker in a performance review. We would like to focus more on a moderate and variable way of payment since they will provide the most usage of funds and employee productivity.
A conservative option approach has a higher fixed cost for the company and has its advantages on the base payment
A Moderate option has a distribution equal in base and incentive pay
A Variable option has a competitive advantages which if the person does not meet goal no incentives are paid out.
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Final Recommendation
Final Recommendation continued
References
Dressler, G. (2017). Human Resource Management, 5th Ed. Pearson Education, New York.
Good Company Image. (n.d.). Graph Job Incentives. Retrieved from https://www.apaexcellence.org/resources/goodcompany/blog/job-priorities-graph-sm.png
Google Images. (n.d.). Retrieved from https://www.google.com/ , March 29, 2019
Motivating Employees Image. (n.d.). Motivating Employees. Retrieved from https://2012books.lardbucket.org
RCA Advisory (2011-2019). Retrieved from https://www.rscadvisorygroup.com/importance-base-pay/
Rowe, R. H. (2018). Six Types of Incentive Plans. Retrieved from https://bizfluent.com/list-6557258-six- types-incentives-plans.html
Srinivasan, A. (2019). Increasing Employee Productivity Without Impacting Morale. Retrieved from https://hrdailyadvisor.blr.com/2019/01/10/increasing-employee-productivity-without-impacting-morale/
