dentify the compensation mix that will best motivate the desired behaviours.

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dentify the compensation mix that will best motivate the desired behaviours.

Employee Type Component % Justification
 

Managers

Base 70 Managers need a steady income to provide security and will demonstrate commitment on behalf of the employer to the employee.
Perform 15 Managers will be facilitating and encouraging group performance amongst the sales staff, this needs to be rewarded accordingly. They need to create a healthy work environment and ensure things run smoothly. Providing performance pay will reinforce this behavior in the long run.
Indirect 15 Indirect pay can help keep the managers in their position and feeling motivated to do a great job on behalf of the organization. Will provide a “peace of mind”.
 

Sales Staff

Base 60 The sales people still need a ‘safety net’ of pay. Providing an hourly wage will guarantee the employees have security if there is an unfortunate day for commission sales.
Perform 30 Providing higher performance pay will motivate key employee behaviours. The sales staff will be focused on selling unique sports equipment and services that are customized to the purchaser. Rewarding with commission will inspire each employee to reach higher sales targets.
Indirect 10 Will provide employees with motivation to sell company products as well as encouraging employees to want to stay.
Kinesiologist

&

Physiotherapist

Base 70 These employees have earned their degrees in their specialties and need a stable salary income to feel secure for their future.
Perform 15 These employees are working directly with customers and providing a personalized experience for each individual. As an employer you would want them to feel motivated to do an exceptional job and reward them for their behavior.
Indirect 15 The case states that other competitors in the same industry have provided poor services and that their employees do not obtain the preferred knowledge. We can therefore make the assumption that there is a labour shortage of sufficiently educated workers. By providing indirect compensation, the kinesiologists and physiotherapists will be satisfied and content with their job and less likely to be stolen by a competitor.

 

 

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