Fast Cat Compensation System

The recommended system would use relevant labor markets as a major input to determine compensation. It would also rely heavily on a functioning performance management system. These recommendations have the potential to simplify the system and make it more transparent to

From a total rewards perspective, the reorganization allowed the company to develop ways to improve the satisfaction of its employees. Linking pay to performance and other compensation incentives was an asset when recruiting talented technology professionals to come in and build

Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs.

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

For the most part, a company’s compensation policy aims to ensure that employees are compensated in a fair and competitive manner. However, the compensation objectives employed by different companies can vary widely. This is especially true when taking into account wages vs. skills, competitor salaries, pay-for-performance, and other elements of compensation, like overtime, incentives, etc. (Snell, Morris, & Bohlander, 2015).

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

It is vital that FastCat employees understand how merit pay works. Ensuring they are educated about the pay system will give them a clear understanding of how each person is paid and will show them that each employee has the same potential to move up the pay scale by attaining more education, increasing their skill level, being accountable and having good communication with customers. During employee orientation, new hires will be provided both verbal and written education with regard to merit pay. They will be given an opportunity to ask questions to make certain they understand how it works. The merit pay will be discussed with each employee during their yearly review so they know where they stand and give them a

Each employee will be paid based on their capabilities rather than on the characteristics of their job. This will provide an incentive for employees to develop their skills and move into other roles.

Employees require motivation, reward and encouragement for maximum productivity. Punishment to workers not performing is also mandatory to prevent cases of poor performance. Ethical considerations must be looked at and employees must follow rules and company policies for plans made by management to be successful. Workers and management relate like a family and this has enabled the company perform to its expectation. These plans are aimed at ensuring total customer satisfaction and delight.

Likewise, it is contended that, the person-focused pay plan offers job enrichment and variation, and potentially flexibility in scheduling. Further, it can also allow a person to remain with one organization and learn the organization completely. Theoretically, employees are motivated to perform jobs that contain a higher degree of the most important elements. The person-focused pay plan allow employees to grow and motivate them to learn. Therefore, a person can learn a job from beginning

Recognizing and rewarding high-performance is a key recommendation for any approach when managing any merit pay program (HRIS 2012). Merit pay is a compensation system where base pay increases and is determined by an individual’s performance. Using a merit pay plan is a good way for an organization to reward high performance is one benefit when using merit pay programs. The first step in implementing or improving a merit pay program is to have a solid performance management program, and this is another way a merit pay program is beneficial. Merit pay is a way to be successful and effectively implement merit pay with a uplift in salaries, and this is a third way using a merit pay program is beneficial to an organization. There are some drawbacks when using merit pay programs, such as paying some employees more than others. If you pay high-performing workers more than low- performing employees, the high- performers may stay, causing the low- performers to complain or leave the organization. A second drawback in using merit pay program is that employees become less motivated if not paid to their satisfaction. For example, if employees feel they should be making more money for their performance, this causes them to have low self esteem, and want to find employment at other organization. The last drawback associated with

FastCat’s priority is to increase revenue and the new pay structure will accomplish that goal in the long run. The new, cost containment, policy rewards, among other things, behavior aligned with FastCat’s objectives. This in turn will increase revenue, innovation, and customer satisfaction. This new system will need to be assessed over time to make improvements.

Sally should consider the advantages and disadvantages of offering piece-rate plans and team-based plans. While both plans offer great advantages for the employees and the company, the disadvantages should be considered as well. Offering the piece-rate pay/individual incentive pay program can have serious limitations. These types of plans can potentially promote inflexibility. Workers can find themselves becoming dependent on their supervisors to set their work goals. Job performance may not increase beyond the compensation amount for those employees who are highly proficient performers, as they may not strive to work beyond what they will be rewarded (Martocchio, 2013). Supervisors are responsible for developing and maintaining performance

The purpose of this paper is to explore my employer’s current Performance Evaluation & Salary Planning methodology to discover if it is a valid or illogical. The paper will contain a summary of how an employee’s performance is rated and how salary increases are determined and distributed. Furthermore, it will cover employee statics, and budgeting. It will also cover what is acceptable and not acceptable by human resources and provide an explanation for the thought process.

Clear and very much characterized objectives and goals ought to be set up to go about as the perspective for the workers to meet their individual goals. Furthermore, there is requirement for consistent criticism, advancement and coordinated effort, collaboration and correspondence. Thus, this will require to overhaul employees both at group level and individual level of the advance made so far and what is should have been done to accomplish the objectives and goals that have been set up. Such system ought to be went with expand reward and pay that underscores on