Determining the Compensation Mix - Sim Section C PDF

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Tutorial work submitted for Simulation Section C for the Duplox assignment...

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Determining the Compensation Mix Base Pay Overall, we intend to suggest a Pay-For-Knowledge system of base pay for the TSS group of jobs within Duplox, while utilizing a Job Evaluation system of base pay for the rest of the job families inherent in Duplox (Directors/Managers, Sales, Professional and Clerical). The majority of compensation inherent in Duplox positions will come from base pay. Utilizing a Pay-For-Knowledge system insures that we hire the right people with the right skills for Duplox while also adhering to its high-involvement managerial strategy. When it comes to using a Job Evaluation system for base pay, we can analyze and ensure that our compensation levels are more equitable across job families, and serve to prevent overpayment for those positions entitled to the base pay. (Long and Singh, 2018). There will be similar allocations for base pay across certain groups, ensuring that equitable salaries are being given and to prevent complications that could arise from pay being dependant on organizational or group performance when compared to other job families. Namely, the TSS, Clerical and Professional job families will have a higher portion of base pay allocated to their total compensation. Addressing concerns of turnover can be achieved through a higher base pay, as the base pay inherent for these positions can signal a sign of loyalty from Duplox to its employees. (Long and Singh, 2018). For the Directors/Managers and Sales job families, there will be a higher allocation of Group and Organizational performance pay relative to their total allocation. Performance Pay Individual While there can be certain benefits to output-related pay, there can also arise complications that come with it. While moving to focus away from issues like unethical sales and aggressiveness in salespeople (Long and Singh, 2018), we’ve decided that merit pay can be beneficial to a company like Duplox. In order to address the high turnover within the TSS and Sales groups, concerns of company loyalty and a lack of organizational behavior can be dismissed in the form of incentives like a merit pay. An annual bonus given to high-performing individuals will merit something to look forward to by the end of the year, while also allowing for improved task behavior and organizational commitment if the employees are holding onto their jobs until their merit pay is achieved. (Long and Singh, 2018) The proposed approach to merit pay will depend on customer satisfaction and quality targets achieved by the TSS and Sales groups, ensuring that the job is done right and retention of customers and business is achieved. Organizational We also want to incorporate employee profit-sharing and goal-sharing plans to incentivize teamwork amongst employees and reductions in turnover. Utilizing profit-sharing and goal-sharing plans can bring together job families to include cohesion amongst themselves, while also recognizing and treating Duplox as an entire entity whose success depends on the strength and quality of its employees. Addressing concerns of turnover can also be achieved through organizational performance pay, providing employment stability for Duplox when there is a link between its employees and the organization’s willingness to pay. (Long and Singh, 2018)

The profit-sharing will be dependent on the goal-sharing plan, as both are linked together to ensure that company directives are clear and being met, while also being sufficiently-funded through the company’s improved and hopeful success in the future. The profit-sharing will be divided accordingly throughout the job families, placing emphasis on the Directors/Managers level, thereby theoretically increasing the Directors/Managers own emphasis on their own directives and ensuring they are looking after the company and its employees in an earnest way: their success is also their own employee’s success. Having this level of cohesion amongst employees will do well to increase the number of intrinsic rewards amongst employees – successfully achieved by utilizing a high-involvement managerial strategy - knowing that there is an inherent responsibility attached to both their own success and Duplox. (Long and Singh, 2018) Indirect Pay It’s clear that benefits are necessary for the hiring and retention of any employees within any organization, as indirect pay can be very beneficial when it comes to a high-involvement managerial strategy. We can apply competitive pressure to the market when it comes to attracting and retaining quality employees, as investing into indirect forms of pay can ensure that the company is not only investing in itself and its success, but also into its employees and its future. (Long and Singh, 2018) Ensuring that employees feel safe and secured in their employment will go a long way towards enriching a high-involvement managerial strategy, while also minimizing their need to look elsewhere outside of the company if the benefits provided aren’t of quality. There are concerns of Duplox’s financial ability to invest in benefits, which can create issues of employee motivation within a high-involvement managerial strategy. (Long and Singh, 2018) This can also be a costly endeavour for the company, but we believe it is one well-worth undertaking. Thusly, a flexible benefits system with cost-sharing implemented would be an endeavour worth implementing for the Duplox strategy. Having employees opt out of benefits they don’t require can reduce costs, while also ensuring that they physiological and psychological needs are being met and satisfied. (Long and Singh, 2018) Higher-level benefits can be applied only if they are truly needed, while ensuring that a high majority of employees are receiving the benefits they actually do need. Duplox will contribute to the mandatory benefits, naturally those being Employment Insurance, CPP/QPP and Worker’s Compensation. More voluntary benefits can be included with things like Life and Health insurance, as well as more flexible employee services that revolve around the individual’s needs: Childcare, Employee Assistance Programs, Equity-based programs and Leave-assisted programs (Grief, Medical, etc.)....