Rwt1 Research Paper

2304 Words Dec 9th, 2012 10 Pages
Business Research Report

Compensation Strategies

Presented to: Management

Assessment Code: RWT1

Table of Contents
Executive Summary 3

Introduction 4

Research Findings 5

Performance Based Pay 5

Salary 6

Longevity Pay 7

Recommendations 8

Conclusion 8

References 9

Executive Summary

This report examines 3 different compensation systems that our company can develop and enforce within our company for our employees. Compensation is the most important and rewarding factor for employees, so a thorough and thoughtful approach should be taken as we think about changing the way in which this company rewards it's employees for the work they do for us each and every day.

Performance
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An understanding of the different methods is necessary in order to be profitable and to inspire quality production.

Research Findings

From extensive research, using a variety of relevant and credible resources, there are three compensation systems that should be considered:

Performance Based Pay

Salary

Longevity Pay

1 Performance Based Pay

A Performance-Based Pay system is an increasingly popular compensation method used by organizations to increase productivity. A goal for all companies is to try and remain competitive and control costs, this is a reason for performance-based pay systems becoming more popular. This type of system attempts to link compensation to performance. (Gena Richter, 2002) These systems are directly tied to organization or individual performance and are most effective when based on objective measures of quantity or quality of performance. If we wish to have a direct impact on work motivation, it must be linked directly to the performance of desired behaviors. In order for to put this type of system into place, performance evaluations must be conducted regularly , as well as training and development for those with performance that isn't quite up to par. These additional resources will be necessary for our organization if we implement a performance based pay system. (William B. Bernathy, Ph. D., 2004)

Pay for performance compensation plans are widely

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