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Employee retention theories and practices
Employee retention theories and practices
Managing For Employee Retention
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The objective of paying our employees is to increase employee satisfaction and loyalty. Northwestern sends too much on recruiting and education to see a majority of its employee leave before they are able to have a full career as a financial advisor. By paying their employees northwestern is able increase employee productivity, increase the employee’s lifespan at the company, which will increase the number of clients northwestern will have as well. Sales reps salary in the first year is 70,000 and commission is capped until, they exceed the sales revenue in $70,000. Anything over $70,000 in sales Reps will receive 10 % commission on all sales life, disability, and Long-term care. The reasoning behind the $70,000 salary is Dan Price the CEO of Gravity payments decided to pay all of his employees $70,000 based on a 2010 Princeton study that basically says if you make less than $70,000 there will be compromises in your life that will effect your work productivity and positivity almost every single day (Weise, 2015, para. 12). $70,000 is a healthy amount of income for these reps, but it is also their sales quota as well. To reach that quota reps will be working long hours from 7am to 5pm or later based on …show more content…
Having an incredibly high turnover rate of reps is a waste of time, resources, and money. If only a couple reps that make it to the 4-year mark Northwestern is just squandering sales reprehensive potential. Giving these reps a starting salary of $70,000 and slowly decrease their salary to be more reliant on commission. This will increase the positivity in the office and create a culture that Northwestern wants to organically grow its sales force and have more reps have a full long lasting career at Northwestern
Sales reps salary in the first year is 70,000 and commission is capped until, they exceed the sales revenue in $70,000. Anything over $70,000 in sales Reps will receive 10 % commission on all sales life, disability, and Long-term care. The reasoning behind the $70,000 salary is Dan Price the CEO of Gravity payments decided to pay all of his employees $70,000 based on a 2010 Princeton
...es not take place. Sales supervisor positions must hold good managerial traits. Since these positions will not maintain accounts, the movements of an account executive to this position will disrupt a team and may result in lost revenues.
Paying people fairly is good for business. Underpay, and employees will eventually look for a better offer. Overpay, and the payroll budget and profitability will suffer. Companies pay for compensation data because the benefits exceed the costs. The amount companies spend on surveys is just a fraction of a percent of their total payroll costs.
When employees were asked, what factors could be changed at USAA to help maintain employee motivation levels, a couple of them answered with, “higher wages” and “more money”. This response corroborates other studies regarding pay which state surveys will more likely under emphasize the importance of pay relative to other motivational factors. (Rynes, Gerhart & Minette, 2004). “Financial incentives had by far the largest effect on productivity of all interventions. For example, pay was four times more effective than interventions designed to make work more interesting.” (Rynes, 2004). One reason for this phenomenon is social desirable responding. It should be noted, that although pay may be under reported, the results indicate other factors are also important for employee
After reviewing Holland’s organizational strategy and exit interviews from the last seven years it is certain that through the new and effective compensation and benefits program created for Holland Enterprises, it will decrease the turnover rate, increase employee satisfaction and engagement and benefit the organization’s overall profits. Through careful consideration of pay structures, incentive awards, internal and external equities and the organizations benefits package Holland Enterprises new compensation benefits package will provide an effective and competitive compensation program. Henderson (2010) writes, “To survive and be successful in a global economy, an organization must be competitive. A major factor underlying organizational competitiveness is labor costs. Not only must an organization pay its workforce a competitive wage within its geographic region, but it also must vary the kinds and amounts of rewards offered, recognizing differences in individual contributions.” (p. 13)
Because each of these different positions requires a different level of education and experience, it is assumed that these positions will also come with different compensation options. Base pay will differ between the three levels of employees, beginning with the managers receiving the highest level of base pay (due to their higher level of education/experience) and salespeople will receive the lowest level of base pay. The physiotherapist and the kinesiologist will receive a base pay somewhere in between.
The founders wanted to make Nau a clothing line on steroids, versus a simple clothing line. They wanted their clothing to have a purpose as they committed the company to having a small carbon footprint, give back to the community, while supplying a quality constructed product that both performed well and looked nice. Nau founders are committed to using their business as a force for change. They combined eco-friendly products which suits the urban lifestyle and “mountain-climbing chic with fashion forward urban cool. They indicated that their goal was “To demonstrate the highest levels of citizenship in everything we do: product creation, production, labor practices, the way
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
Paying students to learn has been a questionable choice for years. Some believe that students should be paid to learn because it motivates them to succeed in school, but in reality it simply does not help them, just as they had hoped for. Although some support the idea for students to be paid because it is beneficial for them, others believe they should not be paid due to the pressure incorporated into a teacher’s life, the fact that this method does not work for all students, and because of the capability of using the money to invest in intrinsic programs. There is no need to pay students when the facts provided by teachers, students, and school officials are properly analyzed.
In the career field, there are many careers and jobs to enjoy such as being a sales manager. As a sales manager, you will be expected to be a leader; however, a sales manager will also set a sales goal for the year, train and hire new members of his or her sales team, and will mark sales territories to certain salesman as to where they will sell their product. Most sales managers are expected to work long hours, late evenings, and weekends. Many sales managers’ annual wages are $98,530, but what a sales manager makes, depends on where he or she works. To be offered a good job with a big name branded company, most sales manager will have to have a bachelor’s degree in business and 1 -5 years’ experience with a sales team. A sales manager position is a fun, exciting job with a variety of different responsibilities.
The goal is to make sure all sales representatives, supervisors, and managers can easily calculate how much they are making at any given time and are they in line with the company’s sales objective. The compensation should be directly in line with the business goals and to properly incentive behavior’s that is lines with the organization’s overall sales objective. Like making sure there is an up-front payment for orders that have to be tailored made. The sales compensation plan should be treated like a contract by keeping it very clear, concise, and simple. Make sure the compensation sales plan is based on something concrete and qualitative. The compensation sales plan should be flexible and allow for new hires and other variables. Maybe add contests or quick campaigns at a certain time of the year to give it an extra boost. Have merit- pay performances and assessments documented and done at least yearly if not quarterly. The plan should clearly outline and layout all of the sales representatives job duties and
Money is an important factor in the motivation of employees, as profit acts as a
The total pay package has a direct impact on the successful recruitment, selection and the retention of staff within any organization. This pay package is critical for any business to remain competitive in today’s business world. Competitive compensation packages are vital to both large and small organizations as they encourage the retention of talented staff.
Compensation and benefits are essential to employees in any organisation because it is to meet their needs for necessities in life. Compensation and benefits are therefore used to encourage employees in the development of skills as Vandenberghe & Tremblay, (2008). Researchers have consistently found that teachers who were paid lower salaries were more prone to leave than those who were paid higher pay rates. When the employees compare their pay within their organisation and across different organisations caused the
Employees at every level have an interest in how the business is performing financially, as it impacts their remuneration.