A company or any business organization considers developing a most efficient total compensation strategy to have it saved from a number of issues. Duplox has a large number of employees taking care of the different duties in the company. Completion of their activities has not been going well for quite a while and the company s facing an increased turnover rate, especially among the TSS workers. In addition, there is a decrease in working morale among its workers. Some workers have developed a poor attitude, and are no longer working as a team to achieve the goals of the company collectively. Customers need do not get satisfied with the services that the company is offering, and a significant reduction in revenue and profits have been realized. There is no effective communication between the general employees and the management, and the interdepartmental relationships have significantly gone down (Islam, Yousuf, Hossain, & Islam, 2014). These issues are revealed from the diagnosis of the company’s compensation strategy. This leaves a review of the compensation strategy the best approach for rescuing the company from the troubles it is facing now. Falling the realization, the company has to develop a new compensation strategy, which would help in solving most; if not all the issues, it is facing currently. In this strategy, the compensation mix has been described. The strategy has also described the relativity of the compensation to the market (Dreher, 2014). Ways of determining the base pay are also described here.
The company has different jobs whose effectivity to the performance of the company varies. Some of these jobs are more involving than others, an indication that the base pay and performance pay will be different for each of the jobs (Han, Bartol & Kim, 2015). However, to bring about the aspect of fairness in the company, the indirect compensation will remain the same for all the employees from each of the department and sections of the company. To start with the TSS groups have a lot of jobs; however, have been identified to be wasting a lot of resources. Their base pay will, therefore, be high, and performance pays the lowest in the company. Additionally, this is the group of employees where the highest turnover rates are experienced. The huge base pay will also help in holding the employees, thus reducing the rates of turnover (Islam, Yousuf, Hossain, & Islam, 2014). The administrative team only oversees the performance, and hence their performance pay should be low. However, considering that they take a lot of time and energy supervising all the workers, they should receive a high base pay than others in the other departments. Sales team success is much about how much they sell (Frankel & Forman, 2017). Their performance pay should, therefore, be highest in the company. The managerial team also works much n setting strategies for achieving excellence in the company. Their performance pay must, therefore, pay as well.
Duplox Company is at the edge of facing a crisis, in nearly all the crucial aspects. The high turnover rates are giving the company a bad position in the job market. Declines in revenue mean that the company may begin operating in debts (Lussier & Hendon, 2017). The new compensation plan is meant to bring about a turning point to all these issues, and the company expects to get back to its feet and even be more efficient in their operations under this strategy. Because the company is already at the unfortunate position in comparison to others in Canada, it needs to redeem itself in the eye of the employees. The company must therefore, display enticing deals. Their compensation rates should, therefore, maintain leading compensation rates in the market in most if not all sectors of their employment opportunities.
In determining the base pay for the company employees under this new compensation strategy, many factors will be considered. This is to bring about relativity in the pay, something common for any company. For this new compensation strategy, base pay shall be determined using the pay for skill method. Under this method of determination of base pay, the people with superior certificates will be receiving higher base compensation. People with longer job experience will also be at a higher position when it comes to base pay. The newly recruited and people with lower certificates will, in this case, receive lower base pays (Ehrenberg & Smith, 2016). In my opinion, pay for knowledge is the best and fairest criteria that should be used by companies and more specifically Duplox company. This method is fair in the sense that experienced employees are always more efficient and can handle jobs more perfectly than the others with fewer years of experience. In regard to the quality of the certificates, degree holders are generally, and better thinkers and hence can handle jobs that need technical skills than high school leavers (Renz, 2016). This criterion of determining the pay will, therefore, grant them additional pay for these skills. In this new compensating strategy, the base pay for all the job holders in the company will be determined with this method.
Having chosen the pay for knowledge method for determining the base pay for the employees in the company, a number of payment factors shall be flowed up so that they arrived base pay is fair to all the employees (Page, 2015). In this method, the first factor that I will recommend for consideration is the level of education for the employees. The ability to tackle difficult and relatively technical duties directly depends on how much an individual is educated. I would consider higher base compensations for the individuals who are holding certificates indicating higher levels of education as compared to those whose certificates (Shields, et al., 2015). This will also award the employees for their educational efforts, thereby encouraging job upgrading through increasing educating among the employees. The second factor I will use in determining the base compensation for employees in the company is their job experience. Following the fact that there have been high turnover rates in the company, the few employees who have stayed for long in the company are the ones who can save the company through reviving efficiency in the company (Renz, 2018). They can use the skills they have gained in their different professional areas. The reason behind paying them highly is that they will serve their employment roles alongside informal training roles which include guiding the recruits on how to go about processes in the company. With these two major factors considered employees who hold certificates with higher educational levels and have a longer time of job experience will receive the highest payments in the company.
References:
Dreher, S. (2014). Social media and the world of work: A strategic approach to employees’ participation in social media. Corporate Communications: An International Journal, 19(4), 344-356.
Ehrenberg, R. G., & Smith, R. S. (2016). Modern labor economics: Theory and public policy. Routledge.
Epstein, M. J. (2018). Making sustainability work: Best practices in managing and measuring corporate social, environmental and economic impacts. Routledge.
Frankel, M. E., & Forman, L. H. (2017). Mergers and acquisitions basics: the key steps of acquisitions, divestitures, and investments. John Wiley & Sons.
Han, J. H., Bartol, K. M., & Kim, S. (2015). Tightening up the performance–pay linkage: Roles of contingent reward leadership and profit-sharing in the cross-level influence of individual pay-for-performance. Journal of Applied Psychology, 100(2), 417.
Islam, M. A., Yousuf, S., Hossain, K. F., & Islam, M. R. (2014). Green financing in Bangladesh: challenges and opportunities–a descriptive approach. International Journal of Green Economics, 8(1), 74-91.
Lussier, R. N., & Hendon, J. R. (2017). Human resource management: Functions, applications, and skill development. Sage publications.
Page, S. (2015). The power of business process improvement: 10 simple steps to increase effectiveness, efficiency, and adaptability. AMACOM.
Renz, D. O. (2016). The Jossey-Bass handbook of nonprofit leadership and management. John Wiley & Sons.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., & Plimmer, G. (2015). Managing employee performance & reward: Concepts, practices, strategies. Cambridge University Press.
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