FastCat: Design Merit Pay
Fastcat Phase 3
Design Merit Pay
It is vital that FastCat employees understand how merit pay works. Ensuring they are educated about the pay system will give them a clear understanding of how each person is paid and will show them that each employee has the same potential to move up the pay scale by attaining more education, increasing their skill level, being accountable and having good communication with customers. During employee orientation, new hires will be provided both verbal and written education with regard to merit pay. They will be given an opportunity to ask questions to make certain they understand how it works. The merit pay will be discussed with each employee during their yearly review so they know where they stand and give them a clear understanding of how they can move up or earn potential bonuses. It is our recommendation that bonuses be given to employees when they attain additional education. For example, if an employee earns a Bachelor’s Degree while working for the company, they will receive a bonus immediately. They would also receive an increase in their base pay at their next review. Additionally, employees who score well on their performance evaluation would be eligible to receive a bonus and an increase to their base pay. By encouraging FastCat employees to continue to attain higher levels of education, it is more likely employee retention will be high. Because each employee has the same potential to increase their pay, it will serve as a motivation for them to continue to improve their skills.
Because the goal of FastCat is to retain their employees, having a merit pay plan will promote a culture where accountability from both the management and entry-level employees is key. Positive incentives will foster individual motivation and a strong work ethic. It is our recommendation that FastCat have a cap of 5% for the merit pay. This may seem high, but it will increase the potential to retain employees and give them a sense of ownership
Design Merit Pay
It is vital that FastCat employees understand how merit pay works. Ensuring they are educated about the pay system will give them a clear understanding of how each person is paid and will show them that each employee has the same potential to move up the pay scale by attaining more education, increasing their skill level, being accountable and having good communication with customers. During employee orientation, new hires will be provided both verbal and written education with regard to merit pay. They will be given an opportunity to ask questions to make certain they understand how it works. The merit pay will be discussed with each employee during their yearly review so they know where they stand and give them a clear understanding of how they can move up or earn potential bonuses. It is our recommendation that bonuses be given to employees when they attain additional education. For example, if an employee earns a Bachelor’s Degree while working for the company, they will receive a bonus immediately. They would also receive an increase in their base pay at their next review. Additionally, employees who score well on their performance evaluation would be eligible to receive a bonus and an increase to their base pay. By encouraging FastCat employees to continue to attain higher levels of education, it is more likely employee retention will be high. Because each employee has the same potential to increase their pay, it will serve as a motivation for them to continue to improve their skills.
Because the goal of FastCat is to retain their employees, having a merit pay plan will promote a culture where accountability from both the management and entry-level employees is key. Positive incentives will foster individual motivation and a strong work ethic. It is our recommendation that FastCat have a cap of 5% for the merit pay. This may seem high, but it will increase the potential to retain employees and give them a sense of ownership