Introduction
Marshal and Gordon is a leading public relations (PR) firm worldwide. It is a key player in the PR industry with a wide range of services such as media relations, investor relations, lobbying, crisis management, fundraising, and event management. The company has been expanding its services to various disciplines such as management, finance, marketing, HR, and management. It has recently launched executive positioning practice (EPP) in which a firm is supposed to provide services of positioning the top executives of the industry to build and redefine the brand image and portray a positive image of the company to the client.
The competition has increased in the PR industry which has created concerns for the PR key players to take care of their principals, partners, associates and employees because they could be approached by the key competitors to join them. On the other hand, the economic down turn has also negatively affected the firm’s revenues, but it has to introduce the new compensation system in the organization to encourage and motive the employees to have a long relation with the company on mutual benefit. The question arises what compensation should it adopt to address the challenges that it has been facing internally and externally?
Analysis
Marshall and Gordon Designing an effective compensation system Harvard Case Solution & Analysis
The new strategy that was created in 2005 was the salary given to employees. In addition, the bonus that would be given would be the percentage of how many clients have been brought by a particular employee and how many clients were executed. The higher the percentage, higher will be the reward. Additional 10% were allocated for motivating the employeesand for the person who has been the best performer.
However, this has been said by employees that 10% best performance bonus is not distributed equally, but the performance is measured on biasness. However, the performance standard has been set and known by employees, still complaints arise. Also, the consultantschoose their favorite people and often associate them with their own bonuses.
Challenges:
This new strategy would create many challenges such as jealousy factors which would result as internal conflicts among employees. If the conflicts are not solved at the right time, the results would be devastating.The potential employees will be leaving the firm because competitors would be offering a peaceful environment to work. Moreover, the conflicts may also result in employee’s lack of motivation and the standard of work would fall. Consequently, the company will lose its potential clients.
Changes to firm’s compensation system:
The: changes that would be needed to make in compensation system is tointroduce a new appraisal system known as 720-degree evaluation. This system says that the evaluation of a particular person should be done by all inside members such as managers, colleagues, CEOs and others. Moreover, evaluation would also be done by clients, shareholders and all outside stakeholders. However, this new system, would remove biasness and true best performer and evaluation can take place in the organization. Moreover, this system will motivate employees to perform better in the company, with the colleagues as well as with the outsiders such as clients.......................
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