Can you help me understand this Management question?
Respond to the following in a minimum of 175 words:
- Predict what type of candidate might be most attracted to an organization offering high salary and cash incentives, but expensive benefits. What are the pros and cons of this type of candidate?
- Should compensation adjustments be based on market movement, meritorious performance, or a combination of both?
Write an Introduction slide as well as slide for Profit-sharing:
our team is consulting with a local manufacturing company that has 1,200 employees and is the third largest employer in the area. When averaging all of the manufacturing employees’ salary divided by the market midpoint, the organization has a 0.90 compa ratio, meaning that on average employees earn 90% of the market rate. Using the current sales and profit trend, the company has the ability to increase compensation spending by 4% annually for the next three years.
Your firm has been asked to propose three approaches for management to consider:
- increasing base pay
- adding a team incentive plan such as profit sharing or individual incentive plan based on individual performance
- a combination of base and incentive pay