The question of “how much does this job pay?” comes easily to most employees; however they sometimes fail to recognize the complex nature of compensation and benefit programs within an organization. There needs to be a distinct balance between two competing needs – addressing the needs of the workforce but at a reasonable cost to the employer. Achieving this balance is difficult, especially as different generations are looking for different benefits for different work/life styles.
Other options HR staff must consider is how to provide these benefits. Some organizations provide certain levels of benefits to various employees while others have benefits provided on an awards system. This method provides more benefits to employees with higher performance levels, thus rewarding those with higher levels of motivation and possibly loyalty to the company.
Another factor is workplace security – whether this is from benefit programs, such as health insurance or workers’ compensation, or freedom from threatening or violent people. Assuring the safety and security for employees allows them to work without fear of any form of harm.
Please refer to the Activity Resources section of each activity for the required readings.
Assignment 5 Incentive Award Programs
“I don’t deserve this award, but I have arthritis and I don’t deserve that either.”
- Jack Benny
This quote from comedian Jack Benny says a lot about awards in general and can easily be applied to incentive awards. Rewarding employees for performance provides the recognition for a job well done. Using incentive award programs to do what the name says, “incent” the employee to perform, allows individuals, groups and the organization the opportunity to be recognized for their efforts and achievement. One caveat to incentive programs is to ensure they create incentive and not resentment. To create incentive, the program must be considered to be fair, balanced and achievable by the majority of employees.
Bohlander, G. W., & Snell, S. (2013): Chapters 9, 10, 11 and 12
Gardner, A. C. (2011).
Glassman, M., Glassman, A., Champagne, P. J., & Zugelder, M. T. (2010).
Main Task: Design a Pay for Performance Incentive Awards Program
You are the Vice President of Human Resources and have been given six months to design and implement a Pay-for-Performance Incentive Reward Program for all employees, including senior management. Design and support your program knowing that it must seem fair and equitable to all employees and should provide proper motivation to achieve organizational goals. Also indicate what rewards will be given for what specific performance outcomes.
You may assume any other details that you wish, such as type of work performed, level of employees receiving payouts, varying payouts by organizational, unit or individual performance, but they must be defined within the paper. To begin this activity, it may help to think of a hypothetical company or industry to provide a setting for your target audience. You should include the following in your program:
Levels of employees and how they are categorized.
Goals/expectations for each level.
Specific awards offered for each goal/expectation, whether monetary or other.
Incentives for reporting behaviors such as sexual harassment and other threatening issues.
Steps HR plans to take to maintain equity and fairness.
Manner in which HR will work with employees who feel the program is unfair or otherwise unsuitable for their professional and personal needs.
Along with your paper, provide a 1-2 page handout that visually displays your program to entice excitement and interest from all levels of employees. Your handout may be provided in a PowerPoint, Publisher or any other format that gives a detailed visual of your written program.
Support your paper with a minimum of three (3) resources, which may include your required text. In addition to these specified resources, other appropriate scholarly resources, including older articles, may be included.
Length: 5-7 pages plus 1-2 page handout, but not including title and reference pages
Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards where appropriate. Be sure to adhere to the Academic Integrity Policy.
This material may consist of step-by-step explanations on how to solve a problem or examples of proper writing, including the use of citations, references, bibliographies, and formatting. This material is made available for the sole purpose of studying and learning - misuse is strictly forbidden.Introduction
Every company structures itself upon a different foundation and has various objectives pertaining to short term and long term growth. Each of these objectives may not be met without the vigorous and dutiful work of employees who are willing to put in countless hours in order to meet these objectives and ensure the propagation of the company into a larger entity. That is why it is imperative for a company’s employees to be treated fairly and given the proper recognition because, without them, there essentially is only an empty building whereby productivity ceases to exist. It is estimated that over 80% of the companies currently use methods of variable payment incentives, or ‘pay-per-performance’ models to ensure that their employees are satisfied and continue to feel motivated and loyal to the company in order for the business to grow and even thrive in uncertain times (Bohlander & Snell, 2013). Employers fully understand the implications of this model because they understand the harsh economic times of today and how essential it is to find employees who are loyal and capable of performing to their maximum potential on a regular basis. This paper will highlight a pay-per-performance system for a hypothetical computer company, GenX, and outline the various structures therein.
Because of the fact GenX is a larger and more reputable computer company than many others in the market, the ability to design a pay-per-performance program may be less complicated than with a company just beginning to generate revenue or even a company that has just had the ability to hire on an additional staff member...