Crayson: The New Compensation System

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Performance pay program is a payment that is based on how employee work. I will have performance pay together with the base pay and indirect pay. This program will be based on the combination of team and organizational performance. In terms of measures, I will choose tools to assess employee performance. I will assess performance based on their achievement as well as their efficiency at work. The performance of the employees will determine their payouts, and the frequency of payouts will vary based on the employee’s work. However, this form of pay will depend on the company’s profits. These profits are distributed by the company on a monthly and weekly basis. Therefore, HR managers should evaluate their individual employees on a monthly basis.

The behaviors that I will encourage in this payment program are task-oriented behavior and hard work. Task-based behavior involves giving directions to the employees in order for them to complete the assigned tasks and ensure that organization’s goals are reached (Mikkelson et al., 2019). I will expect the employees to develop the attitude of workers to accomplish the set tasks. This will aid in assessing an employee’s responsibility for completing the tasks in the workplace. On the other hand, the other behavior that I intend to encourage with this program is hard work. This is a learned conduct that is more of mental than physical effort. Hard work refers to performing tasks that may not be inspiring but necessary to achieve the goals. The employees will be assigned tasks to complete within the set timeline

Indirect Pay Program

An indirect pay program is one approach used to motivate individuals to do their jobs. Some examples of indirect pay in an organization are health benefits, pension plans, leave, and overtime pay. The HR department of Crayson did not have any indirect pay schemes for their employees (Long & Singh, 2018). For the benefit of the employees, I will incorporate the following indirect pay programs.

Indirect pay program Explanation
Paid leaves and holidays I will develop a policy where employees are paid even when they are on maternal and paternal leave and vacations for their personal and organizational reasons.
Health benefits The employees will be given health benefits to help them pay for their medical expenses. This will include health and disability insurance.
Overtime pay This is the additional pay given to employees for working more than a specific number of hours in a week. This program will be offered based on the timeline and organizational performance.
Work-life balance Employers can offer employees flexible schedules to ensure that they can work on their work-life balance because everyone wants to spend quality time with their family and friends.

The employees will be given the same benefits in the organization. If the benefits are not the same, an employee’s morale will reduce as they will see themselves as a lesser worker, and the organization’s overall output will suffer. The primary reason for offering employees similar benefits is that it eliminates workplace discrimination. The employees will feel valued and appreciated. It will also aid in decreasing company turnover and increasing productivity. When employees are satisfied, they are more likely to accomplish the tasks assigned within the set timeline. As a result, giving the employees similar benefits will play an integral role in increasing employee morale and boosting their performance.

In addition, the majority of the benefits will remain the same for all employees. It will promote equity among employees. Employees working in remote places, on the other hand, will have less leverage on benefits such as lunch vouchers, maternity and parenting leaves, bereavement leaves, and educational support. It will encourage employees to work in remote places while attending family activities for a sufficient amount of time. Furthermore, benefits such as defined contribution retirement savings will be available only to full-time employees. Contractors and part-time employees will not be eligible for the pension scheme. There is a possibility that part-time personnel will be hired.

The behaviors that I intend to cultivate are membership and citizenship behavior. In a membership behavior, employees that feel like they are part of the organization will be more productive and have a lower turnover rate (Xu et al., 2019). This behavior will be rewarded indirectly by the employers. Membership behavior also reveals how well an organization attracts new employees and retains existing ones. On the other hand, citizenship behavior aids in collaboration and feedback from coworkers. In this manner, the employers learn about the contentment of their employees. In addition, this will help in the development of favorable relationships between the organization and its clients (Xu et al., 2019). Finally, it aids in providing indirect remuneration to staff by utilizing client feedback.

A Plan for Implementing the New Compensation System

The first step will be to create a team from the HR and finance departments to spearhead the process. The team will create and communicate the vision for the change and create urgency. They will also assist in identifying basic principles, outlining the ultimate vision, and developing strategies for implementing change in an organization. In addition, they will ensure that the vision is conveyed in a way that employees can readily comprehend and follow. Since the payment scheme is a sensitive aspect, it is important to involve people who have the requisite skills for managing change. The main purpose of involving a team that understands the change is to eliminate resistance from existing employees. Therefore, the team will create a conducive environment for implementing the new compensation system.

The second step will be to develop a budget for the new payment system. The budget of the new system is important because it allows the business to estimate their payment expenditure and help regulate the compensation cost. The company should document the new payment for the procedure and reward components for administrations. In addition, the employee’s earnings are then calculated, deducted, and remitted to the government for administration payment system. Then delegate these responsibilities and tasks to a specific person. At the very least, continual communication contributes to the effectiveness of this process by providing compensation information.

The third step is to develop software to manage the new compensation system. The software will be used to calculate payroll, salary, and other difficult things for handling big amounts of data. The computers will help maintain a record of all documents, information, collection, and employee privacy in one software. Outsourcing will be the best strategy because it will save the company the stress of learning the new equipment. This will also help the organization lower costs and the pressure to hire a competent expert. On the other hand, there are certain disadvantages, such as time consumption and reliance on their service, which will impact understanding the benefits system. Therefore, this is an important step because it determines the effectiveness of the operations.

I will do the following tasks to move the employees to the new plan. Firstly, I will create a statement that explains the importance of the plan. During employee meetings, I will make sure that the statement is availed by the supervisors or leaders for them to understand the value of the process. Secondly, I will create a coherent vision to propel the plan. The employees will be able to see the relationship between the plan and organizational goals. For example, as the organization increases its performance, it is supposed to motivate its employees through direct and indirect payment mechanisms. The employees will need to understand that the new plan is effective and will positively impact their performance.

I will seek the help of leaders and managers of the organization to communicate the plan to everyone on a regular basis. The leaders of the organization will also be in charge of tailoring each communication to what will be most beneficial to a given representative or position. For example, managers will send a short email to notify a representative that they are doing a good job, but they will also organize quick face-to-face sessions to set small goals and identify areas for development and progress. There is no one way to do it, but I will act regularly to make sure that employees may become more aware of their performance. As a result, it is important to be prepared for discussions regarding salary or compensation.

For everyone to move through the structure, it will be important to set up the infrastructure, conduct regular training, and communicate the information. The first thing to do will be to create a system to accommodate the employees. The materials needed for communicating to the managers and employees will be set. A training program will be set to educate the employees on the new compensation system. The employees will understand the concepts in regard to payments and rewards. The content will be communicated effectively to the employees. Therefore, the right communication strategy, such as face-to-face communication, will be used, especially during meetings.

Evaluating The Effectiveness of the Plan

The new compensation plan is supposed to motivate the employees and enhance performance. The plan will be analyzed by determining employee turnover and engagement. The employees who are paid well are more likely to feel inspired compared to those who are not paid effectively. To achieve this, a survey can be conducted to determine if the employees are motivated or not. The new compensation scheme will be considered effective if the employees are inspired and engaged in achieving the assigned tasks. Thus, the effectiveness of the new plan is determined by evaluating its impact.

The next strategy will be to assess employee behavior after implementing the new payment system to the organization. This can be done by evaluating the productivity results, revenues, and profits generated. This is also conducted by analyzing the sales results to evaluate and compare with existing data. If the employees are exhibiting membership behavior and task behavior, which were lacking in Crayson’s current situation, then the new compensation system will be considered effective (Long & Singh, 2018). Furthermore, if the figures indicate a positive value, the payment strategy applied is attaining the desired results.


Long, R. J., & Singh, P. (2018). Strategic compensation in Canada (6th ed.). Top Hat e-text.

Mikkelson, A. C., Sloan, D., & Hesse, C. (2019). Relational communication messages and leadership styles in supervisor/employee relationships. International Journal of Business Communication, 56(4), 586-604.

Xu, J., Xie, B., & Chung, B. (2019). Bridging the gap between affective well-being and organizational citizenship behavior: The role of work engagement and collectivist orientation. International Journal of Environmental Research and Public Health, 16(22), 4503.

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