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.
Summary and recommendations After proper study of the details and data analysis provided by Shutts and Bowen Law, our team have observed that the firm possesses three key strength which are pay and benefits, facilitative organizational design, and operational efficiency. It is clearly shown in the combined ratings in Stutts and Bowen law the firm scores above the industry average in this three key aspects. It is important to note that pay and benefits ranks highest among this three key aspects. This shows that workers are usually happy with their jobs when they pay is good and benefits are also good. Workers also tend to sometimes get too comfortable when pay and benefits is too high so this factor must be kept on check.
Alex Edmans starts off with question why businesses exist; basically, businesses exist to earn along with increase profit. Alex Edmans found that the 100 best companies to work for in America; nevertheless, delivered stock returns that beat their peers by 2-3% per year over 26-year period. Companies that treat their workers better always do better. Costco for example, they pay their workers $20 dollars per hour, which is double the national average of $11 dollars. Edmans explains that as investors we have the power to put our money into companies that would reflect what we would like to see in this world.
“In this respect, the employees are considered as ‘customers’ with whom the employers/organizations have dealings” (Barnes, Fox, & Morris, 2004 pg.
Harrah’s Entertainment Inc., named Caesars Entertainment Corp. in 2010, is the largest casino company in the world. Its success could be attributed to its low turnover compared to other companies in the industry, its incentive plans to motivate employees, and management by top industry leaders. This case will focus on the motivation and reward practices at Harrah’s, its effectiveness, and possible modification or alternatives to the prevailing policies. The incentive plans have three most effective elements are lowering turnover, improving customer services, and contributing to overall employee performance.
Overview: This milestone focuses on the topic of this week’s lessons: compensating employees. Using the material on compensation provided in this week’s lesson and the case study, write a short paper in which you: Describe the compensation philosophy of Maersk and how the market influences this philosophy. Determine the value of salary surveys to an organization. Describe the advantages of discretionary benefits to Maersk. Guidelines for Submission: Your submission should be two pages in length and double-spaced using 12-point Times New Roman font.
There is no incentive provided for marginal or nonperforming workers to improve, as this type of seniority-based pay systems does not take into account individual job performance. It primary looks only at tenure to be the deciding factor for pay increases, so it does not recognize the different value of individual contributions. In addition a study done in Personnel Psychology showed that this type of pay structure negatively impacted the recruiting and retention of high performers. The benefits provided were loyalty, retention, and stability, regardless of performance levels (Shaw and Gupta). In summary, the companies using this type of incentive pay system retain more staff, and have a lower turnover of marginal workers.
Most companies across the world, pay their Chief Executive Officers (CEOs) and senior management level employees significantly more than lower level employees. This huge wage gap has existed for a long time. The Lawrence Mishel study “The State of Working America 2005,2006”, reveals that the ratio between CEO pay and average company pay has increased from 24 to 1 to close to 300 to 1, over the past 40 years (Mackey, J. (2009, June 17)). A CEO is usually the highest ranked executive manager in an organization or corporation and their duties vary based on an organization’s mission, goals, products, size and number of employees.
Total Rewards: Identify appropriate total rewards strategies to increase employee retention and explain how these strategies support the goals of the
Devising company policies to reward, train and incentivize workers universally would be essential towards having an engaged workforce, which will translate to greater customer satisfaction and company returns in the long
