most important or rather the initial relationship between the employer and the employee is the wages. To boost morale among the staff, compensation packages and wage rise shall be provided in the course of the business. This will obviously be determined by their overall work ethics, devotion and efforts.
Our compensation package per staff will be more like commission per Boeing battery sold. The company will make 1000 batteries annually. Staff will earn twenty-one dollars per item sold. This is not inclusive of the usual wage. This amount was decided according to the range of profits from the sales. The net percentage profit that will be made is forty-nine percent. The commission given will be 1.5 percent of the profit (Houck, 2012).
These will be able to attract, motivate and retain our staff members. It will compel them to want to sell more and more batteries in order to earn themselves commissions. They will be more aggressive, contributing to more sells. At the end of the day, the company will benefit from the sales, as the profits will be more (Fisher, 1995).
Compensation will also introduce healthy competition among the stuff as each staff will market and sell more batteries than the rest of the stuff. They will work smart to outdo their mates. Again at the end of the day, the company will end up profiting. This will be a win-win situation to parties, the company and the staff.
Wages will be increased at the end of each fiscal year. However, this will majorly be determined by the overall profits made within that fiscal year (Wells, 2004). This together with compensation package will be able to retain our staff; competition among them will be a motivation. This will also attract outsiders who would want to join our staff team.
With the company coming up with the best way to attract more and better equipped and skilled workers, it will be important if the company comes up with a payment system that is as well fitting for the new employees that will dedicate themselves to the company. This is one where the new battery-making manager will be required to work for hours into the day and make the occupation worth the time. It would be as well important to make sure that the company is offering the best salary as compared to its competition.
On average, competing battery making companies in the region pay between $18 – $20 per hour thus translating to between $38,000 and $40,000. The company will have to up its game for this reason with the lowest salary level being at par with the highest from some of their competitors. The additional bonuses the workers receive are dependent on the company and the way in which they work. The fact that some of the workers would receive some funds as they move from rank to rank, it will as well be dependent on the funds and the benefits that the company makes. For instance, at the end of a fiscal year, the company will offer a 1% percent increase in the wages offered to the workers dependent on the position. Thus, the worker in question for this study will therefore receive a 1% wage increase. However, if the worker is diligent, and the company has as well received a profit from the market, the worker will receive a 5% percent increase in their salary. These are steady increments that take place over a period of five years with following financial increments up for revision later.
The reason for the new salaries for the workers is because the economy of the country is developing and thus the people deserve to have better salaries that may help them lead lives that would survive in the event of a recession.
The country’s economy is developing and the people may as well get some incentives so that they are able to stay at the company despite the changing economic levels.
The below table (1) will give a breakdown of the finances of the company and table (2) will show us how much people in management position get in year 2013 in US
Fisher, M. (1995). How to reward your staff: A guide to obtaining better performance through the reward system. London: Kogan Page.
Houck, E. E. (2012). 100+ ways to recognize & reward your school staff. Alexandria, Va: ASCD.
Wells, J. (2004). Just rewards: Reward your staff and reap the benefits. Crow’s Nest, N.S.W: Allen & Unwin.