Designing, Developing, and Implementing Compensation System

TITLE: Designing, Developing, and Implementing Compensation System

An assignment submitted by;

Jahswill Kingsley Ukah—T00045853

Section A: Formulating Your Compensation Strategy 

The compensation strategy will be formulated according to the 5-step methodology suggested by Long (2013).

1.  Define the Required Behaviour

Physiotherapist: This position will require adequate task behaviour to complete the basic tasks, such as to provide advice on problems such as injuries or chronic back pain; high membership behaviour to be able to train other employees in how each type of equipment can be used for various conditioning and training purposes; and advanced citizenship behaviour to encourage self-education in the up-to-date fitness and training equipment novelties.

Kinesiologist: This position will require adequate task behaviour in providing advice on training for various sports or other physical activities; high membership behaviour to encourage commitment and establish positive human relations within organization and with customers; and superior citizenship behaviour to motivate employees voluntarily assist clients with developing personified training or conditioning solutions to address their own specific needs at no extra cost, and to keep up with the latest fitness and training trends to fit the corporate strategy of being the “most up-to-date and advanced supplier of new products and techniques.

Salespeople: Traditionally salespeople are required to display high task behaviour in order to cope with their sales plans. Consequently, their reward system is often based on performance pay (Hamel, 2008; Kirovska & Qoku, 2014). However, regarding the specialization of The Fit Stop as a seller of fitness and conditioning equipment, the company cannot tolerate pushing the products to the customers at any price. Salespeople are not expected to perform high sales targets without consideration of the specific needs and objectives of the clients. Instead, high membership and citizenship behaviour is needed in order to be able to work as a team with other employees to provide the best customer service.

In order to ensure high membership behaviour, the Fit Stop should pay much attention to employees’ job satisfaction and work motivation which generally stem from perceived employees’ equality of reward systems and determine degree of commitment. High membership behaviour will lower employee turnover that, in turn, will have a positive impact on the bottom line of the company which is important considering high employee acquisition and retention costs. Continuance commitment is crucial since the knowledge created within the organization as a result of collaboration between physiotherapist, kinesiologist, and salespeople will provide Fit Stop with competitive advantage in the long-term.