Group Proj_Human Resources Plan__APAFORMAT.docx

10 increases in base salary are always nice but not

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10). Increases in base salary are always nice, but not always necessary. Motors and More, Inc. can do a benchmarking exercise to ensure their current employees and new employees coming in are at a competitive base salary by looking at the bell curve for each level in the business. Ideally employees should sit in the mid-tier or you risk the chance of losing them to a company who might give them more money for the same job. The disadvantage to benchmarking merit pay is that there could be a cost impact to getting everyone to the median rates vs. competition. “Incentives and bonuses reward individual performance without adding to base salary. Incentives and bonuses also link pay with performance” (McCain, 2007, p. 10). Bonuses are a nice way of saying thank you to hard working employees for yearly performance. It can also increase standards for productivity if they know their bonus is being measured based on goals and vision that they have to meet. The disadvantage to this is employees might become more competitive and/or cost on the financials might be a challegne.
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HR Project Plan 32 “Commissions are pay based on product sales. On a straight commission pay plan, pay is based on employee performance; the more sales, the more commission the employee receives. A combined commission pay plan pays a base salary plus commission. Commission pay plans directly link pay to performance” (McCain, 2007, p. 10). Commissions will be a very good idea with the new sales team being hired to meet the prospector strategy needs of growing marketshare and global sales growth. This will incentivize new sales people to push Motors and More, Inc. harder knowing that the commissions are based on their performance of what they sell. Human Resources has to be careful as sometimes commission type bonuses can be gained unethically and can impact the financials. “On-the-spot awards instantly reward employees for good performance or behavior. The recipient is usually nominated by a supervisor or peers. Awards may include gifts, gift certificates or cash” (McCain, 2007, p.10). Rewards that are on-the-spot can help the employee base gain confidence with what they are currently doing, this could help push people to improve productivity and performance in their space, being recognized and receiving accomplishment vs. waiting a full year for a bonus is much more rewarding and keeps employees pushing forward. Human resources and team leads need to ensure fairness when giving out these awards, to make sure team members don’t start to resent those who get these awards and continue to work towards the same goals. “Profit sharing is when the organization pays employees above and beyond their base pay when the organization earns a profit” (McCain, 2007, p. 11). This will be helpful for Motors and More, Inc. as a first benefit given that they can decide when they see increased sales numbers and profits to reward their employee base with those profits. This helps keep the financials in check and makes employees feel their working towards the strategy and vision of the company.
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  • Fall '14
  • Group Project, McCain

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