Writing Homework Help

SFC Principles of Effective Compensation and Reward Practices Essay

 

I’m working on a writing discussion question and need a sample draft to help me learn.

Congratulations, you’ve been hired as the new CEO of a fifteen year old company with 150-200 employees. The first task the board assigns you is to evaluate the employee reward system and give them your recommendations to change it.

During your discovery, you find that the company has traditional benefit plans such has a health insurance and a retirement plan. As you dug deeper, you learned the company placed an emphasis on longevity and the only other additional employee reward system, pay raises, was tied to that. Meaning the longer you worked for the company, the more of a raise you could earn. The scale went up by 1/2% every year after year one’s 1% raise until a maximum of 10 years of service. That meant employees that have been with the company for 10 years or more automatically received a 5.5% annual raise. 

After talking with managers, you’ve learned many employees feel entitled to “their” pay increases, after all, they have put in years of loyalty with the company. However, managers have noticed the entitlement mentality discourages innovation and hard work from both new and longstanding employees.

Use the principles you have learned over the course of the semester to create a justifiable reward system to keep loyalty but reward hard work. You must address the current pay raise system. Do you keep it, change it, or eliminate it. Justify your answer as you would to the board of directors.