Compensation task Harvard Case Solution & Analysis

Compensation task Case Study Solution

Benefit Plan

Hourly Production technicians

Benefits Amount
Salary 36 k Annual
Sick leaves 20 sick leaves
Bonus $ 2000 twice

Skilled Trades

Salaries 56 K annual
Sick leaves 26 sick leaves
Bonus $ 5000
Yearly Holidays 30 days paid

Production Supervision

Benefits Amount
Salaries $85000
Bonus $4000
Yearly Leave 36 day paid

Manufacturing and process engineers

            Salaries $90000
Bonus $5000
sick Leaves 26
Holidays 36 paid

Computer Technicians

Salaries $90000
Bonus $5000
Sick leaves 26 days
Holidays 36 paid

The above benefit plan is sustainable as it covers the major areas of the employee benefits and also offers above market averages. Such above average market benefit plans allows the organization to maintain the employees leading to sustainability. Moreover, since it is above the standard rate, the change in market condition will not affect the compensation, and hence is sustainable (Jones, 2017).

Employee Evaluation Process

The performance evaluation will provide employers with an access to evaluate the performance of each individual of the four jobs individually and will help in determining the amount of compensation is needed to be adjusted by each employee.

The primary aim of establishing the employee evaluation process is to have an equitable measurement of each of the employee’s contribution and to achieve high quality and quantity in the work being delivered by the employees and  motivate them to perform better with each passing period. The evaluation process will have include the following.

The motivational aspects of employees are listed below;

  1. The organization should greatly recognize what drives workforce at workplace.
  2. The organization should heavily invest in the recognition program for employee
  3. The organization should consider their view, ideas and opinions.
  4. The organization should set smaller goals on the weekly basis
  5. The organization should incentivize and gamify them (Doshi, 2018).

The guideline for the employees not meeting the minimum expectations of employees includes the training in order to build skills and knowledge. The organization should need to give opportunities and tools in order to attain more. The commitment of perpetual enhancement or improvement of the skills of the employees as well as licensing or accreditation programs would be an effective way to bring about growth in employee motivation and knowledge (Lai, 2017).

The evaluation of the employees would greatly base on several guidelines which are provided below:

Hourly production technicians:

They would be evaluated on the basis of the hourly hours being met per week or per day, meeting the requirements of customers or criteria set by company.

Skilled trades:

The skilled trades will be evaluated on the basis of the number of successful trades and the sales it brings into the system. In addition, they will be evaluated on the basis of impanation of the JIT system or other trade systems in the organization.

Production supervisors:

The production supervisors would be evaluated on the production process’s safety and compliance with the environment regulations and standards. They would also be evaluated on successful scheduling of production, increased efficiency of production.

Manufacturing and Process engineers: 

The manufacturing and process engineer will be evaluated on the basis of the default rates, back log orders, process cost, budgets and delays occurred while production.

Computer technicians

The computer technicians will be evaluated on the basis of efficient implementation of the process and technology in the production system.

End game for employees:

Those employees who will fail to meet the minimum performance requirement will be provided a training to help them overcome the challenges being faced by them during their performance and to improve their skills. In case the employees still fails to deliver the expected performance and to meet the minimum performance expectations he/she than will then be asked to resign or will be fired from their jobs.

Turnover rate:

At an average the employees who are expected to leave the organization over the period is expected to be 9%. This percentage incorporates voluntary resignations, non-certification, retirements and dismissals. It doesn’t include the percentage of employees that have moved internally such as promotions or transfers.

The average pay raise will be based on the on the performance measures determined. Based on those factors each employee performance will be judged and raise accordingly. The minimum average pay raise is expected to be 5% and the maximum average pay raise is to be 15%.

The evaluation and raise plan made is suitable for each of the jobs. Therefore, it is expected to be sustainable for a long period of time and is to be appreciated by the employees as it include the basis needs and expectations of the employees. The plan doesn’t need to be ADA and ADEA complaint as it will make things complicated. To keep the plan simple and effective and free from any age brassiness it will not include the ADA and ADEA complaint.............


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