Question

You are the director of compensation for a midsized organization. Come up with a new compensation strategy that will support the motivational needs of knowledge workers and reinforce the real-time performance appraisal system that the organization has embraced. Also, make sure that this compensation strategy is competitive in the marketplace. Make sure to describe a compensation program for knowledge workers.

Be sure to address the questions below in the presentation.

• What is the compensation strategy being proposed?
• Did employees provide input?
• Who else provided input?
• What incentives are included in the plan? How will it motivate the employees?
• How will employees determine fairness of the pay structure?
• Why do you believe the employees will be satisfied with this plan? Justify the compensation strategy that supports the motivational needs of knowledge workers.
• What is your communication plan for rolling out the new program?

Answer 1

• What is the compensation strategy being proposed?

The compensation strategy arranges steps to be taken for the key remuneration principles in the company. This approach defines key strategic actions and values and these are rewarded. This approach makes the comparison between the fixed strategic compensation and a group of diverse compensation components that are not connected.

The compensation strategy being proposed is that whoever achieves higher production and good quality rate would be given incentives. Incentives would be handed over the employees based on their production and quality numbers.

• Did employees provide input?

Yes, the employee have listened to this strategy and given their inputs that the incentives would be paid out during the end of each month and the person who is the best achiever would be recognised and known as the "Star of the Month". Incentives would be given to the top 10 contributors and this would be done by ranking system of their production and quality.

• Who else provided input?

The auditors or the supervisors have provided their input based on the monthly audits they perform. They have given their inputs based on their insights of what is required to motivate an employee to work and give his best performance at work.

• What incentives are included in the plan? How will it motivate the employees?

Incentives would be given to the top 10 employees who have scored the best ranks in terms of production and quality. This would motivate the employees to be cautious during production and process good output without any errors. All the employees would wish to get an incentive and this would motivate the employee to provide their best performances at work.

• How will employees determine fairness of the pay structure?

Employees would determine fairness in the pay structure when they notice that the employees who are putting in their best performance are being recognized for their work and also by looking at the monthy dashboard, they will come to know who is leading in the chase to get the incentive reward for the month.

• Why do you believe the employees will be satisfied with this plan? Justify the compensation strategy that supports the motivational needs of knowledge workers.

The employees would be satisfied with this plan as every employee need to be motivated at work and an incentive that would be added to their pay check would be an added booster for the employee as they would want to earn more money. Also they would not feel lethargic while performing the same monotonous job over a period of time since they would be rewarded for their production and quality. The values and behavior of a hardworking employee would be rewarded.

• What is your communication plan for rolling out the new program?

A team huddle would be the best to roll of the Incentive plan program to the employees as each and every employee would be present for the team meeting and also if any employee misses out on attending the meeting, the minutes of the meeting would be shared with them at the end of meeting, so they could read and understand the necessity of this incentive plan approach.

Also during a team meeting we can have group discussion to know about each and every employee's insight on the incentive plan that is going to be rolled out.