Reading Assignment #6 1. In order to keep top performers satisfied and productive, Steve Bates argues, there should be a substantial difference in the variable pay or merit- based salary increases that top performers and poor performers receive. Based on available research the increase needed to catch “anybody’s attention” should be a seven percent or eight percent increase in compensation. It also states that anything below that might be welcomed, but will not lead to substantially greater effort on the part of employees to increase business results. 2. In assumption, last year I was hired for an entry-level HR position at a large corporation. My first year my compensation was $35,000. I was one of the top performers, while one of my classmates was a below average performer. My employer explains to me that finances are tight and there was not a lot of money set aside for merit increases, but he wants to reward my hard work. He gives me a 3% salary increase and my classmate a 1.5% increase. In dollar amounts my annual gross increase I received was $1,050, which is a weekly increase of approx. $20.12. My classmate …show more content…
The compensation package I would create for top performers would begin at the current level of their performance and build upwards with no cap on rewards. Those meeting and or surpassing each goal will receive a revolving method of reward, by interchanging monetary reward plus public recognition and just monetary reward. Therefore, meeting the psychological needs and the physically wants of top performers. For the average performer, I would adjust the first goal level for reward above the current performance level. The increments increase of goals levels would be small to motivate average performers to meet the next level faster. All rewards will include both monetary and public recognition. By providing average level performers both nonmonetary and monetary rewards at each level will make use of social pressure to motivate those still not