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Introduction

The goals for an effective total rewards programs are often the same for a global organization. These include enhancing employee motivation, productivity, and engagement.

Your manager, Megan, officially now your mentor, has arranged for you to present your comprehensive reward plan to CapraTek upper management. Successful completion of this assignment will put you on the promotional fast track.

Instructions

Integrate your job analysis and classification, pay structures, and benefits proposals into a comprehensive compensation structure and prepare a PowerPoint presentation of a comprehensive reward plan for CapraTek upper management. Refer to the resources for guidance on how to use the presentation software.

Structure your  presentation by the sections below:

Overall Strategy and Goals

Evaluate compensation and benefits components in your plan.

Articulate the overall strategy.

Identify legally required benefits in your plan.

Identify discretionary benefits.

Argue whether this is a good return on investment.

Tactical Steps

Outline specific tactical steps.

Pay Structures

Create a visual representation of strategic pay structures. This could be a table, chart, or diagram.

Create a visual representation of a strategic benefits structure and propose a timeline for implementation.

Justify the alignment of external and internal pay structures.

A strategic pay structure.

A strategic benefits structure.

Conclusion

Evaluate the effect of rewards plans on workforce behavior of employees and executives.

Cite evidence that the plan is internally consistent and externally competitive

Assignment Requirements

The deliverable for this assessment applies professional skills in HRM to workplace situations that you will likely encounter in your day-to-day work in HRM. As part of your learning, focus on the development of effective professional communication skills for the workplace.

Length: Your PowerPoint presentation should be 10–12 slides.

Visual: Create a visual representation of strategic pay structures. This could be a table, chart, or diagram.

Organization: Make sure that your assignment writing is well organized, using headings and subheadings to organize content for the reader.

Font and font size: Ariel, 28 point.?

Resources: Use two scholarly, peer-reviewed or academic sources.

Evidence: Support your assertions with data and/or in-text citations and create a reference list as the final slide.

APA formatting: Resources and in-text citations are formatted according to current

APA Style and Format

.

Written communication:

Address the appropriate audience, using familiar, discipline-specific language and terminology.

Use spell-check and other tools to ensure correct spelling and grammar.

SCORING GUIDE

Your Work will be evaluated using this criteria.

VIEW SCORING GUIDE

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:

Competency 1:  Assess the impact of compensation systems on individual and organizational performance.

Evaluate the impact of reward plans on workforce behavior of employees and executives. ?

Competency 2: Apply compensation theories to formulate a total rewards strategy.

Assess the alignment of external and internal pay structures.

Formulate the overall strategy and goals of a total rewards strategy for a scenario.

Competency 3: Analyze the influence of job classification systems on compensation programs.

Apply specific tactical steps recommended for the plan and propose a timeline.

Cite evidence the plan is internally consistent and externally competitive.

Competency 4:? Communicate clearly, accurately, and professionally in the Human Resource Management field.

Address the appropriate audience, using familiar, discipline-specific language and terminology.

1
Structural Pay Plan
Student’s Name
Professor’s Name
Institution
Date
2
Introduction
To build Capra Tek’s strategic pay structure, the Martocchio five-step system was used.
These five procedures define the number of pay structures, the market pay line, the pay grades,
and the pay ranges for each post (Yang, 2012). There is also a lot of attention paid to merit-based
pay systems, sales incentive compensation plans, and initiatives promoting people. For this
study, we used information from Capra Tek’s Initial Issues & Analysis, Job Structure and
Compensation, and Strategic Pay Structure.
Strategic Compensation Plan
Compensation specialists at CapraTek will be able to design a pay structure for its
Mahomet location that is in line with its job categories by taking the fundamental process of
building pay structures into account (Štangl-Šušnjar & Slavić, 2012). Discrepancies in employee
contributions and pay rate differences for jobs of unequal value are based on pay structures. A
carefully defined compensation policy is essential to establishing a salary structure.
Compensation experts use five steps to create pay structures:
a) determining the number of compensation plans
b) Paying attention to the competition in the market
c) Creating pay scales
d) Pay scales based on grade level
e) Evaluating the results
Internal equity and market pricing can both be used by companies to develop a consistent
method of boosting the compensation of employees in recognition of their distinctive
contributions. Employing the internal equity method will result in pay grades being established.
3
Focusing more on the higher pay levels and less on the lower ones is what we’re going to do
(Anvari et al., 2014). First, a business must determine how many different pay levels it requires
based on the number of employees and the variety of tasks they perform. By limiting the
compensation range for specific positions or regions, management can reward performance and
skill development while controlling total base salary costs.
“Benchmarking” the work performed inside an organization is standard when businesses use
market value for pay structures. A bookkeeper and an accountant, for example, may both be
employed by the same company, but even though their job titles sound similar, their duties are
pretty distinct. If an organization is going to benchmark the market value of each job, its first
step should be to determine what those jobs are worth within the company. In benchmarking, the
market worth of the job decides the pay rate, not the individual who does the job (Barnes et al.,
2012).
Martocchio’s Five-Step Methodology
Using job analysis, job appraisal, pay survey analysis, pay policy design, and pay
structure construction to assign pay levels to jobs or groups based on their respective internal and
external values. As appropriate, they recognize distinctions among personnel can be
accomplished by paying them according to their qualifications, expertise, or work output. New
employees at Capra Tek will be paid less because a two-tiered compensation structure is in place
(Martocchio, 2011). Market pay rates for each job structure will be compared to the typical
market pay rates for standard and consistent positions across various organizations, including
Capra Tek. There will be an emphasis on internal consistency in the Research and Development
employment structure, where pay rates will be based on appropriate labour markets. For
4
example, as a person advances through the ranks from research associate to informatics analyst
to research scientist, the responsibilities and expectations become more complex and demanding.
A pay policy is then applied to positions with similar compensable variables, such as the
worth of the work and the amount of education or experience that a worker has. The number of
grades will be sufficient to separate difficulty levels but not so large that the differential between
two adjacent rates becomes insignificant. A pay range will be established for each job grade,
showing employees’ top and lower pay limits (Martocchio, 2011). The wage range’s maximum,
minimum, and middle points will be determined using market data. Analysis of significant
variations in company values for positions and market values will be used to evaluate the results
of the new pay structure. Disparities between internal matters and the market’s valuation of the
jobs will be reevaluated.
Merit-pay Systems and CapraTek
The merit-pay system, particularly for manufacturing workers, was the subject of several
methods. People-based pay should be replaced by a more flexible system of skill-based pay.
There are ten various tasks to be completed on the manufacturing line. Supervisors want the most
flexibility in assigning work, so having most or all employees capable of working on any of
those activities is beneficial. An employee’s salary would be determined by the number of tasks
they can complete. Those who begin entry-level will work at the lowest rate and work their way
up to the highest rate after completing all ten assignments. Everyone in the department shall be
given equitable access to training and evaluation for their various responsibilities. Pay tends to
rise with this system, but managers have more control over workflow to keep payroll costs down.
5
Sales-Incentive Plans and CapraTek
As a result, managing a new company’s sales force is one of the most challenging aspects
of management. A salary-only plan is burdensome for employers since they must pay employees
regardless of their performance. Due to the company’s desire to hire salespeople from Generation
Y, Capra Tek will implement a salary-plus-commission plan to spread out the company’s
financial risk among salespeople (Barnes et al., 2012). With the wage component, the
organization could recruit and retain better personnel by allowing them to focus their energies on
non-selling responsibilities that don’t result in commissions, such as training and customer
service.
Person-focused Programs and CapraTek
Instead of rewarding performance, person-focused compensation plans emphasize
acquiring employees’ job-related competencies, knowledge, or skills. CapraTek offers skill-based
and pay-for-knowledge programs. For the most part, it’s best to apply both because most
employees will be learning new skills and competencies in their work environment (Martocchio,
2011). The employees’ behaviour, knowledge, abilities, and skills will determine a suitable
payment plan.
Conclusion
The management of CapraTek is faced with the difficult task of selecting which of the
five job structures that have been discovered would benefit from a particular compensation
structure the most. Some general criteria should be followed to develop the relationship between
the successful acknowledgment of employee contributions and the pay structure. These rules
should be followed regardless of the specifics of the pay plan (Martocchio, 2011). Capra Tek’s
6
compensation professionals have supplied management with recommendations that accurately
identify correct incentives to accomplish desired actions.
7
References
Anvari, R., Mansor, N. N. A., Rahman, S. A. Bt. P. A., Rahman, R. H. B. A., & Chermahini, S. H.
(2014). Mediating Effects of Affective Organizational Commitment and Psychological
Contract in the Relationship between Strategic Compensation Practices and Knowledge
Sharing.
Procedia

Social
and
Behavioral
Sciences,
129,
111–118.
https://doi.org/10.1016/j.sbspro.2014.03.655
Barnes, C. M., Reb, J., & Ang, D. (2012). More than just the mean: Moving to a dynamic view of
performance-based compensation. Journal of Applied Psychology, 97(3), 711–718.
https://doi.org/10.1037/a0026927
Martocchio, J. J. (2011). Strategic reward and compensation plans. In APA handbook of industrial
and organizational psychology, Vol 1: Building and developing the organization (pp. 343–
372). American Psychological Association. https://doi.org/10.1037/12169-011
Å tangl-Å uÅ¡njar, G., & Slavić, A. (2012). Changes in European companies’ human resource
compensation systems: Based on the CRANET research result analysis. Strategic
Management, 17(4), 32–40.
Yang, Y. J. (2012). An Empirical Study of Constructing Index System of Tour Guide’s
Compensation and Motivation Effect. Advanced Materials Research, 433–440, 2086–
2091. https://doi.org/10.4028/www.scientific.net/AMR.433-440.2086
1
HR Challenge: Internally Consistent and Externally Competitive
Student’s Name
Institutional Affiliation
Course
Instructor
Date
2
HR Challenge: Internally Consistent and Externally Competitive
Internally Consistent is a measure founded on the correlation between various items
on the same tests it measures; it can be defined as the decision made from being constant with
a particular technique. In contrast, external competitiveness can be defined as a pay
relationship created among firms. The paper aims to analyze the procedure used by CapraTek
to establish and form an internally consistent and externally competitive compensation.
Hence, job analysis and job evaluation will be managed and controlled to ensure internal
consistency within a firm to begin the procedure. The next step will include several jobs
outlined in five different job structures to be assessed and analyzed to know and recognize
how they affect job classification systems on compensation (Elrehail et al., 2019). Besides,
after analyzing a strategic analysis that includes internal and external considerations, a step
that entails the plan will be shown, making recommendations for the market survey. The data
that will be utilized will entail data collected from face-to-face interviews with the workers of
different firms, interviews conducted with HR analysts who have experience in how to deal
with job structures and several jobs listed in the job structures,
HR Challenge: Internally Consistent and Externally Competitive
The HR challenge that can be recognized is that majority of firms depend on one
sophisticated option when establishing and implementing an internally consistent and
externally competitive job structure; job structures that need higher qualifications, more
duties and responsibilities and are more complicated hence have higher pays compared to the
low qualification jobs with few duties and responsibilities and are less complicated. Thus by
implementing job analysis and job evaluation procedures, CapraTek’s combination started to
work on a contrast of all the jobs at the firm to create and implement its compensation
system. The aim was to minimize the challenges faced in companies and create an easy
process in internally consistent and externally competitive.
3
Job Analysis and Job Evaluation
In such a scenario, Job analysis and Job evaluation will be managed and controlled by
offering a strict contrast among various jobs that can eventually be used to start a competitive
compensation plan. The procedure must be detailed to contain analyzing and contrasting
demands where the outcome of particular jobs matches the employee’s abilities and
strengths.
A job analysis is a structured and organized procedure for collecting, documenting,
and evaluating information related to and reporting firm jobs. It offers information on
satisfied and job duties, employee requirements, job context, and job specifications. It also
cuts across providing information on employees’ working conditions. The procedure for job
analysis has five major activities: finding a job analysis program that is suitable and effective,
choosing and training analysts, administering and managing a job analyst’s orientation,
conducting and operating the study, and summarizing the results ending with job
descriptions. Besides, proper and reliable job analysis techniques are vital to establishing
internally consistent compensation systems (Olson et al., 2018). Also, the factors that outline
a particular job needed to reflect the real work; hence, failure to match correctly compensable
factors with the work that employees do may lead to excessive or inadequate pay.
On the other hand, a job evaluation can be an effective procedure that consistently and
comprehensively analyzes the differences in the relative worth among jobs in a job structure
and creates pay variation accordingly. Job evaluation can be utilized to analyze, control, and
regulate what positions and job responsibilities are indistinguishable for the aim of
promotions in case they occur, payment, assigned work, any other assignment, transfers from
one branch to the other, internal equity challenges, and lateral moves, to regulate and
determine suitable and relevant salary or pay grades and to assist with the development of job
4
specifications, job description, performance appraisal system, competence, and performance
standards.
A job evaluation slightly emulates the priorities and the values that management
places on several positions. The process can be categorized into six major activities, which
include: regulating a job evaluation method, selecting the job evaluation committee, selecting
and training employees to perform the evaluation, how to communicate to employees,
establishing an appeals process, and documenting and recording the plan.
Job Classification and Competitive Compensation
Job classification is the procedure of accurately and objectively analyzing, evaluating,
and selecting the job’s tasks, duties authority levels concerning the information, experiences,
education, skills, and responsibilities of an individual carrying out the job. Classifying and
categorizing jobs creates consistency in job titles, compatible job levels within the salary
ranges, and the firm’s persistent and purposeful hierarchy by the identified factors. Besides,
these factors can be related to education, experience, skills, knowledge, pay ranges on
comparable jobs within the firm, and market pay rates for employees doing similar tasks in
similar companies and industries.
Compensation Survey Plan
Firms depend on compensation surveys to set benefits and payments to recruit and
select highly qualified and experienced applicants and retain and maintain valued employees
who perform. The procedure for establishing a market-competitive pay system is to analyze
and assess competitors’ payment practices with compensation surveys, combine and unite the
internal job structure with external market payment rates, and consider the compensation
policies.
The first analysis and examination of CapraTek’s external market and internal factors
must be conducted. For instance, CapraTek’s external market factors include detailed
5
information about competitors such as Samsung, Oracle, and Google, the long-term growth
prospects, and the smart home technology industry profile. CapraTek’s internal factors
include the firm’s functional capabilities and financial condition. Besides, the competitors’
compensation data must be gathered and analyzed to determine the techniques and methods
that make them perform better. The integration of the internal job structure should be
integrated with the external market payment rates recognized and identified through the
compensation surveys. Also, CapraTek, like other firms, will depend on regression analysis,
which is a statistical technique aimed at acquiring integration (King & Vaiman, 2019). Also,
the top management will be recommended the pay policies that will be effective for the
competitive strategies and the firm’s standing so that the workers may feel motivated to do
the job. These methods should be robust and effective to survive the successful execution and
completion of the compensation survey. Management should make sure they align objectives,
values, and the company’s mission with strategic methods to collect user data.
Compensation Strategy
Compensation is an important part of the whole human resource strategy. Since it can
be termed as an element that is both vital and visible to employees, a program and technique
advanced to communicate, recognize and reward strategic goals raises the possibility of
employees not acknowledging but achieving the goals and objectives assigned to them.
Advancing and establishing a compensation strategy needs CapraTek to utilize the same
design, diagnosis, and definition procedure used when developing a strategy for human
resources. Levels of base pay, benefits, and incentives should be offered relative to
competitors while at the same time being internally equitable.
Conclusion
Job analysis and evaluation will be provided through comparison among the many
jobs that can ultimately use to establish a rational compensation system. Following the
6
recommendations above, the compensation system of CapraTek will be internally consistent
and externally competitive. The strategies and processes must be planned and approved by
the company’s management.
7
References
Elrehail, H., Harazneh, I., Abuhjeeleh, M., Alzghoul, A., Alnajdawi, S., & Ibrahim, H. M. H.
(2019). Employee satisfaction, human resource management practices and
competitive advantage: The case of Northern Cyprus. European Journal of
Management and Business Economics.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human
resource management policies within the marketing organization: The impact on
business and marketing strategy implementation. Industrial Marketing
Management, 69, 62-73.
King, K. A., & Vaiman, V. (2019). Enabling effective talent management through a macrocontingent approach: A framework for research and practice. BRQ Business Research
Quarterly, 22(3), 194-206.
1
HR Challenge: Internally Consistent and Externally Competitive
Student’s Name
Institutional Affiliation
Course
Instructor
Date
2
HR Challenge: Internally Consistent and Externally Competitive
Internally Consistent is a measure founded on the correlation between various items
on the same tests it measures; it can be defined as the decision made from being constant with
a particular technique. In contrast, external competitiveness can be defined as a pay
relationship created among firms. The paper aims to analyze the procedure used by CapraTek
to establish and form an internally consistent and externally competitive compensation.
Hence, job analysis and job evaluation will be managed and controlled to ensure internal
consistency within a firm to begin the procedure. The next step will include several jobs
outlined in five different job structures to be assessed and analyzed to know and recognize
how they affect job classification systems on compensation (Elrehail et al., 2019). Besides,
after analyzing a strategic analysis that includes internal and external considerations, a step
that entails the plan will be shown, making recommendations for the market survey. The data
that will be utilized will entail data collected from face-to-face interviews with the workers of
different firms, interviews conducted with HR analysts who have experience in how to deal
with job structures and several jobs listed in the job structures,
HR Challenge: Internally Consistent and Externally Competitive
The HR challenge that can be recognized is that majority of firms depend on one
sophisticated option when establishing and implementing an internally consistent and
externally competitive job structure; job structures that need higher qualifications, more
duties and responsibilities and are more complicated hence have higher pays compared to the
low qualification jobs with few duties and responsibilities and are less complicated. Thus by
implementing job analysis and job evaluation procedures, CapraTek’s combination started to
work on a contrast of all the jobs at the firm to create and implement its compensation
system. The aim was to minimize the challenges faced in companies and create an easy
process in internally consistent and externally competitive.
3
Job Analysis and Job Evaluation
In such a scenario, Job analysis and Job evaluation will be managed and controlled by
offering a strict contrast among various jobs that can eventually be used to start a competitive
compensation plan. The procedure must be detailed to contain analyzing and contrasting
demands where the outcome of particular jobs matches the employee’s abilities and
strengths.
A job analysis is a structured and organized procedure for collecting, documenting,
and evaluating information related to and reporting firm jobs. It offers information on
satisfied and job duties, employee requirements, job context, and job specifications. It also
cuts across providing information on employees’ working conditions. The procedure for job
analysis has five major activities: finding a job analysis program that is suitable and effective,
choosing and training analysts, administering and managing a job analyst’s orientation,
conducting and operating the study, and summarizing the results ending with job
descriptions. Besides, proper and reliable job analysis techniques are vital to establishing
internally consistent compensation systems (Olson et al., 2018). Also, the factors that outline
a particular job needed to reflect the real work; hence, failure to match correctly compensable
factors with the work that employees do may lead to excessive or inadequate pay.
On the other hand, a job evaluation can be an effective procedure that consistently and
comprehensively analyzes the differences in the relative worth among jobs in a job structure
and creates pay variation accordingly. Job evaluation can be utilized to analyze, control, and
regulate what positions and job responsibilities are indistinguishable for the aim of
promotions in case they occur, payment, assigned work, any other assignment, transfers from
one branch to the other, internal equity challenges, and lateral moves, to regulate and
determine suitable and relevant salary or pay grades and to assist with the development of job
4
specifications, job description, performance appraisal system, competence, and performance
standards.
A job evaluation slightly emulates the priorities and the values that management
places on several positions. The process can be categorized into six major activities, which
include: regulating a job evaluation method, selecting the job evaluation committee, selecting
and training employees to perform the evaluation, how to communicate to employees,
establishing an appeals process, and documenting and recording the plan.
Job Classification and Competitive Compensation
Job classification is the procedure of accurately and objectively analyzing, evaluating,
and selecting the job’s tasks, duties authority levels concerning the information, experiences,
education, skills, and responsibilities of an individual carrying out the job. Classifying and
categorizing jobs creates consistency in job titles, compatible job levels within the salary
ranges, and the firm’s persistent and purposeful hierarchy by the identified factors. Besides,
these factors can be related to education, experience, skills, knowledge, pay ranges on
comparable jobs within the firm, and market pay rates for employees doing similar tasks in
similar companies and industries.
Compensation Survey Plan
Firms depend on compensation surveys to set benefits and payments to recruit and
select highly qualified and experienced applicants and retain and maintain valued employees
who perform. The procedure for establishing a market-competitive pay system is to analyze
and assess competitors’ payment practices with compensation surveys, combine and unite the
internal job structure with external market payment rates, and consider the compensation
policies.
The first analysis and examination of CapraTek’s external market and internal factors
must be conducted. For instance, CapraTek’s external market factors include detailed
5
information about competitors such as Samsung, Oracle, and Google, the long-term growth
prospects, and the smart home technology industry profile. CapraTek’s internal factors
include the firm’s functional capabilities and financial condition. Besides, the competitors’
compensation data must be gathered and analyzed to determine the techniques and methods
that make them perform better. The integration of the internal job structure should be
integrated with the external market payment rates recognized and identified through the
compensation surveys. Also, CapraTek, like other firms, will depend on regression analysis,
which is a statistical technique aimed at acquiring integration (King & Vaiman, 2019). Also,
the top management will be recommended the pay policies that will be effective for the
competitive strategies and the firm’s standing so that the workers may feel motivated to do
the job. These methods should be robust and effective to survive the successful execution and
completion of the compensation survey. Management should make sure they align objectives,
values, and the company’s mission with strategic methods to collect user data.
Compensation Strategy
Compensation is an important part of the whole human resource strategy. Since it can
be termed as an element that is both vital and visible to employees, a program and technique
advanced to communicate, recognize and reward strategic goals raises the possibility of
employees not acknowledging but achieving the goals and objectives assigned to them.
Advancing and establishing a compensation strategy needs CapraTek to utilize the same
design, diagnosis, and definition procedure used when developing a strategy for human
resources. Levels of base pay, benefits, and incentives should be offered relative to
competitors while at the same time being internally equitable.
Conclusion
Job analysis and evaluation will be provided through comparison among the many
jobs that can ultimately use to establish a rational compensation system. Following the
6
recommendations above, the compensation system of CapraTek will be internally consistent
and externally competitive. The strategies and processes must be planned and approved by
the company’s management.
7
References
Elrehail, H., Harazneh, I., Abuhjeeleh, M., Alzghoul, A., Alnajdawi, S., & Ibrahim, H. M. H.
(2019). Employee satisfaction, human resource management practices and
competitive advantage: The case of Northern Cyprus. European Journal of
Management and Business Economics.
Olson, E. M., Slater, S. F., Hult, G. T. M., & Olson, K. M. (2018). The application of human
resource management policies within the marketing organization: The impact on
business and marketing strategy implementation. Industrial Marketing
Management, 69, 62-73.
King, K. A., & Vaiman, V. (2019). Enabling effective talent management through a macrocontingent approach: A framework for research and practice. BRQ Business Research
Quarterly, 22(3), 194-206.
1
Benefits Structure for CapraTek
Student’s Name
Institution of Affiliation
2
Benefits Structure
CapraTek’s personnel will be divided into several pay structures, which will be
crucial in creating salary levels. The company will design the benefits structure for the
firm’s job descriptions in this scenario. The issue of who is rewarded by the
corporation will be addressed as part of the compensation structure. The wage
structure at CapraTek will be dependent on the specific job categories.
CapraTek’s staff will be compensated according to their work categories in a
given class or grade. The assistant manager will be reimbursed at an hourly rate
between 17 and 44 dollars in this situation. The director will be paid a basic pay of
$300,000 per year. The statistic in this situation may not be true; therefore, expect
revisions after capraTek leadership meets and makes their final judgments. All the
federal standards must be followed.
Junior managers with zero to three years of experience will be compensated
$150,000. A degree in business administration is required for the junior manager.
Including over six years of experience and a bachelor’s degree in management
consulting, a senior executive will be paid $250,000. Supervisors with more than four
years of experience in any renowned institution in the industry will receive a basic
salary of $175 0000.
Under this structure, all workers at CapraTek will be paid according to their job
level. The employee’s job level will determine the wage structure that the firm will
utilize. As a result, pay classes will be determined based on various work levels inside
the organization. Retirement packages will be based on job levels and federal
standards. CapraTek will adopt a defined contribution plan. This plan does not
guarantee a precise amount of pensions and benefits. In such plans, either the worker
or the company contributes to the worker’s personal account usually at a specified rate,
like 5% of yearly income. These funds will be invested on behalf of the
3
employee. 401(k) plans, 403(b) plans, stock options, and profit-sharing proposals are
all types of defined contribution plans which will be used. The following are the
reward systems that will be adopted.
Merit-based Pay System
The company aims to make employees feel more valued for their contribution to
the organization by offering a performance-based incentive. Such incentives aim for
the corporation to keep its most valuable personnel within its workforce. CapraTek is
an organization that aims to make employees feel valued and that their effort is
appreciated. Staff will be compensated basis on performance. The purpose of
performance-based merits is to motivate them to improve their performance. The
organization will utilize a 360-degree performance assessment to identify workers
who have excelled in their roles. Using the merit pay scheme, the corporation will
need thriving human resources to ensure that employee concerns about their
achievements are addressed with the utmost zeal. Although the system may have
certain undesirable aspects, critical administration can utilize it to encourage people
and so get them to function properly (Lazear, 2018). Merit pay isn’t mandated by the
Fair Labor Standards Act (FLSA), although it can be supplemented to or incorporated
into an employee’s base compensation as a bonus or boost. The best workers within
the organization will be recognized through an in-house process that identifies the
highest performing personnel.
Person-Focused Programs
This approach will be predicated on an employee’s ability to demonstrate
command of a set of capabilities that increase their value to the company. Employees
must abandon the notion of compensation as a right. Instead, these systematic
approaches pay as a benefit for gaining and putting into practice job-relevant
4
information and abilities. Workers who learn new abilities will be compensated under
sensitive pay plans (O’Donnell & Marsh, 2022). CapraTek will employ two distinct
approaches, one of which is skill-based compensation and the other is knowledgebased compensation. Person-focused pay schemes are a type of incentive program
used mostly by businesses to encourage and inspire its employees to learn new skills
(Lazear, 2018). The goal is to ensure that individuals that go to great lengths to learn
new abilities are properly compensated and kept by the organization for the firm’s
long-term benefit. This personnel will also be required to demonstrate that they might
deliver the same energy performance as the rest of the organization. Employees are
encouraged to improve constantly due to the person-centred pay plan. Since workers
can master a profession from start to finish, they can be more invested in the mission,
increase accountability, and implement lean methods.
Sales Incentive
CapraTek will devise a personnel benefits plan that contains the required
incentives to ensure that salespeople are motivated. Their sales staff will start with
basic pay and then get performance-based bonuses. Any company must consider their
salesforce at all times (Spisakova, 2019). The corporation must also be in the final
process of generating supplemental plans that can be applied when compensating
these employees for their daily job. Since the dawn of time, sales compensation
packages are often used to encourage and recognize sales teams’ great results.
Successful strategies respond to a salesperson’s skills, encourage sales teamwork, and
complement the distinctive features of a sale (Lazear, 2018). CapraTek must consider
several things to ensure that all personnel in the sales team are compensated
appropriately for their work. Sales incentives encourage improved performance.
Alignment to the Pay Structure
5
By assuring that remuneration, benefits, pensions, and bonus programs drive the
essential attitudes and decisions, this method will assist CapraTek in achieving its
corporate objectives, ambitions, and vision. Pay levels will be determined using
market pricing, real salaries, or a hybrid. Relevant data from the market will be
calculated to assess a pay scale for a certain pay scale, and real salaries should be
utilized to determine the scope’s midpoint. Groups related to organizational hierarchy
levels will be developed to construct pay grades depending only on real salaries.
Directors and vice presidents, for instance, would be the two different pay tiers.
Several roles with comparable organizational value, responsibilities, and
compensation can be grouped. The company’s commercial state will determine the
alignment of the structure. When determining the firm’s salary and benefits, the
current business climate must be considered. After the task categorization has been
completed, the alignment will be completed. The laws that govern corporate pay will
also be taken into account. Even though capraTek can consider the current economic
situation at any given time, it must ensure that every option it takes in the ending
adheres to the established standards and rules. When determining the compensation
range, the workforce’s experience and professional skills should be considered
(Spisakova, 2019).
Evaluation
After the firm has established itself in the marketplace, it will be assessed. Future
reviews could be performed in the marketplace. This will be simple to determine the
possible modifications to the compensation structure due to this. The wage structure
will be established in light of the current market situation. Pay grades might be based
on market pricing, real salaries, or a combination. CapraTek, for instance, may utilize
6
market information to construct a compensation spectrum for a certain pay level and
real salaries to calculate the range’s midline.
References
Lazear, E. P. (2018). Compensation and incentives in the workplace. Journal of
Economic Perspectives, 32(3), 195-214.
O’Donnell, E., & Marsh, L. (2022). The Impact of Compensation Structure on
Salesperson
Perceptions
and
Behaviors:
Insights
From
the
Sales
Literature. Compensation & Benefits Review, 54(1), 3-11.
Spisakova, E. D. (2019). Position of employee benefits in remuneration
structure. Transformations in Business & Economics, 18(2), 47.

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