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Strategies for Employee Wage Management

Mark wants to address wages and rewards at his company to boost low employee morale after three years of no wage increases during an economic downturn. He wants to reward top employees who have continued working hard without incentives. As a consultant, I would advise Mark to give raises only to a deserving minority of high-performing employees, but also launch an incentive program to motivate all employees and give everyone a chance to earn more through strong performance. This addresses employee morale without overspending while the incentive program could boost productivity across the company.

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AnanKay
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437 views2 pages

Strategies for Employee Wage Management

Mark wants to address wages and rewards at his company to boost low employee morale after three years of no wage increases during an economic downturn. He wants to reward top employees who have continued working hard without incentives. As a consultant, I would advise Mark to give raises only to a deserving minority of high-performing employees, but also launch an incentive program to motivate all employees and give everyone a chance to earn more through strong performance. This addresses employee morale without overspending while the incentive program could boost productivity across the company.

Uploaded by

AnanKay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

MANAGERIAL DECISION MAKING

ASSIGNMENT 1

1.) What outcomes does Mark seem to want to achieve by addressing wages/rewards?

The onset of recession had set the company House Hearth and Home into its third year of a
downturn. Downturn directly translated to no increase in wage. Since it was the third year in
a row to witness no rise in wages, Mark seemed to believe that it would probably harm the
already low morale of the employees. He thought it would be particularly unfair to expect the
employees to continue with their jobs with no hike in their salary.

Mark wanted to reward those employees, who kept doing their best, put the company’s best
interest ahead, and continued to show their sincerity towards their job despite having no perks
in return. Especially employees like Simon, the floor manager, Wesley the yard foreman,
Aaron the controller, and new employee Kyle. He realized that these employees went the
extra mile even when nobody was watching and deserved to be appreciated.

By addressing the wages/ rewards, he first and foremost wants to show his gratitude towards
these stellar employees who form the backbone of the company.

Since the company faced a wage freeze for two years and moving into their third, Mark was
afraid that the employees might resort to other methods of compensating for lack of rise in
salary, primarily through stealing items and smuggling them out of the store instead of a
raise.

By addressing the wage issue, Mark wanted to ensure that there would not be a situation
where the adverse conditions force his employees to steal and self-deal.

2.) As a consultant to Mark, would you advise him to give raise to all, to none, or to the
deserving minority? Explain your reasoning and how would you mitigate against
possible repercussions.

Given the lack of funds, it would be impossible for Mark to give a fair amount of raise to
everyone. It would also be unfair to reward everyone, especially those who have not been
productive or motivated enough to make a difference to the company.

That being said, It seems it is imperative to give credit deserving minorities for their
diligence towards the company. The deserving minority who form the foundation of the
company must be appreciated, as the company cannot afford to lose such valuable talent. The
fact that they have continued to give their best doesn’t necessarily imply their willingness to
do so in the future, especially with no perks to show for it.
I feel, along with appreciating these select few, Mark should also launch an incentive
program. The incentive program will provide rewards to those who have worked hard and
gotten the best results.
This way it gives everyone an equal opportunity to all employees to prove their mettle. This
will not only push the underperformers to work hard but will also make sure that the good
performers are not complacent.

As Mark mentions, the underperforming employees are a massive liability to the company
and would save them costs by about 15%. The launch of the incentive program would be an
excellent opportunity to overturn this situation. The program can be a source of hope to the
lazy demotivated employees as they can pursue this tangible goal.

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