Designing an Effective compensation system for the company
The effective compensation system has many benefits for the firm as it helps the company in recruitment and retention of the employees. It also inspires and guide the work team in the right direction. In order to develop the effective compensation system, there are many factors that the Marshall & Gordon have to consider. Some of these factors include the pay scales, a bonus for the employees, commission and the other several kinds of benefits to their employees and consultants in order to motivate and encourage them to perform effectively.
Moreover, the Marshall & Gordon should need to develop the plan in the way that drive the right behavior in all the employees of the company as well as the management of the firm must communicate its anticipations for the behavior and performance with the employees. In addition to this, the firm should before developing the compensation system to make sure that the benefits must centered on the right behavior and performance of the employees. The management of the firm also needs to communicate the expectation of the compensation system in order to implement it effectively with all the members of the firm.
The firm also must assure that the design and implementation of the compensation plan must be cost-efficient Additionally, it would be challenging for the firm to design and effectively implement the compensation plan which encourages and retain the employees and set high accomplishment standards that must arrange in a line with the goals of the firm in the quickly shifting environment of the Public Relations industry.
The effective compensation system for the Marshall & Gordon should consist of the following steps:
- Overall objectives and strategic plan.
- Significance and procedures for the compensation plan.
- Criteria for performance measurement.
- Involvement of the firm’s employees.
- Communicate the plan with the employees in term of competitive point of view.
- Implement and Monitor the progress of the compensation plan.
- Adjustment and modification of the plan.
Overall objectives and strategic plan
In the first step of the design of an effective compensation system, the Marshall & Gordon should need to describe the overall objectives and strategic plan for the compensation plan that must be aligned with the goals of the firm. These goals may include increase firm profitability, an enhancement in the employees’ productivity, and strong relationships with clients and consultants growth. With the development of these goals, the firm may identify which goals best fit to the individual employees. The Marshall & Gordon must consider the areas of the business that need improvement in order to effectively design the compensation system for the employees.
Significance and procedures for the compensation plan
The second step in the design of effective compensation involves the significance and procedures for the compensation plan that the Marshall & Gordon should describe. The management of the firm should elaborate the importance of the compensation plan for the employees as well as for the firm as a whole. Furthermore, it is also important for the firm to explain the factors that must be a part of the compensation plan and that impact the performance of the employees. These factors may include basic pay, rate of commission, bonuses, the merit of compensation increases and other expected elements that compensate and motivate the workforce.
Criteria for performance measurement
In the third step of the design of the effective compensation plan, the firm need to specify the criteria for the performance measurement of the employees in order to reward them. Also the management of the Marshall &Gordon needs to determine the level of measurement as well as also describe the level of the rewards that are projected to drive the behavior of the employee. This part of the compensation plan is important for the firm as this helps in identifying the behavior and performance elements for the employees that may result in the motivation and encouragement in the whole firm.
Involvement of the firm’s employees
The fourth step in designing the effective compensation plan includes the involvement of the firm’s workforce. This means that the management of the firm need to involve the employees in the development and implementation process of the compensation plan. Additionally, they also need to describe how much information should be disclosed to the employees in order to successfully implement the new and effective compensation system...................................
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